Employ These 5 Clever Habits, And You'll Never Struggle With Credit Card Debt Again

Credit card chaos? Here’s the ultimate guide to staying in control.

Jesse

• Published in News
• September 15, 2024

Let’s face it: credit cards are a double-edged sword. Swipe here, tap there, and before you know it, your balance is higher than your hopes of ever paying it off. 

According to the Federal Reserve Bank of New York, many Americans, especially those under 30 or in lower-income households, find themselves teetering on the edge of credit card debt. 

It’s no surprise, given the temptation to swipe now and worry later—but that ‘later’ often comes with hefty interest charges, missed payments, and snowballing debt.

But here’s the good news: you don’t have to be another statistic! Whether you’ve already racked up some debt or just want to stay on top of things, there are proven ways to keep those credit card bills under control. 

John Kiernan, the managing editor at WalletHub, is here to help, sharing five smart tips to avoid the financial quicksand that is credit card debt.

We all know how credit cards can be a blessing and a curse. They’re convenient, offer rewards, and can help you build your credit score—when used responsibly. But it’s easy to fall into the trap of "I’ll pay it off later.”

So, if you’re tired of paying interest on top of interest and seeing your monthly payments barely make a dent, these five tips are for you:

1. Understand how Interest works

First things first: know what you’re up against. Interest isn’t just a flat fee tacked on at the end of the year—it compounds, and it compounds quickly. 

Interest charges add up daily, especially if you’re not making payments regularly. By the end of the year, you could end up paying way more than you ever expected. So, do yourself a favor—pay off that balance every month!

2. Don’t let your Interest-free period slip away—use it to your advantage

Did you know many credit cards offer a grace period before charging you interest? This is your golden window to pay off what you owe without any interest piling up. But once you miss a payment or don’t pay your full balance, that grace period vanishes, and interest starts accumulating immediately.

Luckily, if you slip up, all hope isn’t lost. Call your credit card company and ask how you can regain that interest-free time. They may let you know how to earn back that precious grace period by clearing your balance or paying two consecutive months on time.

3. Make the minimum payment (at least)

Okay, so you’re a bit strapped for cash one month. It happens. But even if you can’t pay off your whole balance, always make the minimum payment. 

This small but mighty act keeps your account in good standing and saves you from credit score damage, added interest, and late fees. Plus, it can buy you some breathing room while you figure out a bigger payment plan.

4. Use a balance transfer to your advantage. It could buy you more time to sort yourself out

If your current credit card debt feels like quicksand, consider transferring the balance to a card with a 0% interest rate. You’ll typically pay a one-time transfer fee, but the relief from interest charges can help you pay down your principal balance faster.

Just be sure to make the minimum payments – or you might be back where you started.

5. Create an efficient debt-payoff strategy

Finally, if you’re struggling with debt, it’s time to get serious about a repayment plan. Financial calculators can help you map out exactly how long it’ll take to become debt-free.

Once you have a clear strategy in mind, factor those payments into your budget and stick to the plan.

Keep these smart habits in your wallet, and you'll be swiping with confidence, not stress. Remember, credit cards are a tool, not a trap—unless you let them be.

Now go enjoy life—and a healthier bank balance!

Jesse