Managing card debt during a credit crunch

By: Sara Toliver

You should always strive to use credit cards wisely. Anything more than just a little credit card debt should be avoided because the more debt you have the more difficult it becomes to get back on top. However, it's even harder to manage credit card spending in times of economic hardship like the current credit crunch we are facing. Here are a few tips on how you can avoid increasing your credit card debt during a credit crunch:

1. If anything, you should be aggressively paying down your credit card debt. Things are getting worse and interest rates are going up so if you can, pay them off.

2. Think twice before using credit cards to purchase frivolous things. Ask yourself, do you really need the item? Is it a necessity? Forgo purchases unless you have the money to pay them off as soon as the bill arrives. Not being able to immediately pay off these items will end up costing you much more in the long run because of the high interest cost .

3. If you have no choice but to purchase daily necessities using your credit card such as food and gas, pay those items off as soon as you can. Credit card providers these days are reducing credit limits while increasing interest rates so if you're not paying off your purchases immediately, those items are costing you double or even triple the price if you were to pay in cash.

The main point to keep in mind is that you should be spending wisely and saving aggressively so you can pay down any credit card debt you may have. It is simply not worth ruining your credit.

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