Five Ways to Avoid Credit Card Debt

By Mr Bankruptcy

28th September 2023

According to debt charities, outstanding credit card debt reached £66.4 billion, an increase of 8.2% (£5.0 billion) in the year to June 2023. This means that credit card debt averaged £1,248 for every adult in the UK.

But with interest rates still high and with no immediate sign of coming down any time soon, it’s more important that ever to avoid piling up credit card debt. In this blog post we look at some of the ways you can keep control of your credit card and make sure it works for you – not the other way around.

How to avoid credit card debt – 5 steps

1. Create a budget: Understanding your income and outgoing expenses and creating a budget in which you aren’t spending more than you earn will help you avoid the need to put ordinary living expenses on your credit card. A budget provides the information you need to set spending goals, know where money is being spent unnecessarily and ensure that you have enough left at the end of each month to avoid the need to use credit.

• Avoid unnecessary spending: Understanding where your money is going enables you to take greater control of it. You may be surprised at just how much you are spending on items that you could go without or where there are opportunities to spend less than you do by making a few simple changes to your spending habits.

• Pay your credit card bill on time: The charge for missing credit card payments can be substantial and will lead to the debt on your card increasing without you even using it, so meet your minimum payment at least.

• Build a savings pot: A savings pot is great for those unexpected costs and gives you that extra financial buffer that means when you need a bit extra, you aren’t relying on your credit cards to see you through. When times are challenging financially it seems difficult to put money aside for savings, but even if it’s just a little bit each month, regularly saving is a great habit to develop and it could save you money in the long run.

• Pay off your credit card bill each month: Paying off the balance of your credit card each month is another good habit to get into. It’s far easier to keep on top of your credit card debt when it’s cleared monthly, and it prevents debt from slowly building from month to month until it gets to the point when it becomes impossible to pay.

So, keeping an eye on your spending and creating good money management habits should go a long way to ensuring that you stay in control of your finances and help you avoid the need to reach for the credit card unless you really need it.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. Our team offers clients a full range of advice and professional services, all delivered with a supportive and friendly approach, to private individuals or business owners and directors wanting to tackle unmanageable debt from whatever cause. We also help people and businesses involved in a civil or commercial dispute. Our services include:

• Insolvency support
• Negotiated settlements
• Personal assisted bankruptcy
• Mediation

James Rosa Associates is authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, then contact James Rosa Associates today, ring 0845 6807217 or email enquiries@jamesrosa.co.uk and we can discuss whether you qualify for a free consultation.

Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.