Back in May, the U.S. saw a 7% annual rise in household credit-card debt. Some say that’s a sign that we should start to get our use of plastic under control.
Of course, we could try to live without credit cards. But there are reasons plastic makes sense. For one thing, it's convenient. And credit cards make certain tasks – such as renting a car – a lot easier.
So, here are some tips for ensuring that your credit card debt doesn't get out of hand:
1. When you shop, shop with purpose. When you leave the house to go shopping, have a list in hand of items that you need and can afford, and do not buy anything that's not
on the list.
2. Stop and think. Are your savings tapped out for the month? If you're not sure you can pay it off, don't charge it.
3. Treat credit cards like checks. If you're going to charge a purchase, write it down or at least mentally subtract it from the running checking-account balance in your head.
4. Don’t make false promises. Don't say to yourself, "I'll charge it now and pay it off next month." Just don't. You're all too likely to let it ride.
5. Don’t forget to use your debit card. These days, some banks offer the same anti-fraud
protection on debit cards as comes with credit cards. If that's the case with your debit card, use it instead.
6. Choose wisely. Some experts recommend a "spending by choice" technique. Before you buy anything, picture three other items that the money could buy. Which do you choose?
7. Ask for help. If you can't get out of your debt problem alone, ask for help. Find a credit-counseling agency that's willing to work with, and educate you.
– By Ed Coury, Senior Editor and Midwest Bureau Chief for the Wall Street Journal Radio Network, Dow Jones & Co., and a reporter for WWJ Newsradio 950.
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