Most people want to avoid bad credit, but in a world where people seek instant gratification, it seems like an impossible thing. The good news is that with proper planning, it is possible for one to live debt free. Many people get stuck in a financial rut simply because they cannot live without credit cards. Credit cards have been known to cause financial stress.

However, managing your credit card spending can end up being beneficial to you. Using credit cards is not usually the main problem. The problem is that people over use their cards and they get stuck with a huge debt that ends up affecting their credit scores. If you cannot do without a credit card, you need to plan how to avoid bad credit while using these cards. How do you do this?

Pay Your Credit Card Debt Within The Grace Period

Credit card companies offer their clients a grace period where a customer does not have to pay interest if they repay the amount charged within the set time. For example, if your credit card has a grace period of 21 days, you can charge an item and if you pay the amount before the set time, you will not pay interest. This can only happen if you have to charge items that you really need, but don’t have enough cash on you. This practice ensures that you don’t accumulate more debt.

Don’t Get Too Close To Your Credit Card Limits

In order to maintain a high credit score, you have to stop spending too close to your credit card limits. For example, if your limit is $3,000, don’t spend up to $2,999. Doing this will send your score down whether you pay your bills at the end of each month or not. This is something most people don’t know. Ensure that you spend at most 30% or less of your available credit. This will ensure that you avoid bad credit.

Pay Bills In Full

JAnother cause of bad credits is making minimum payments that trap debtors into a cycle of increasing debt. Be careful how you spend your credit card money and don’t spend on items that you cannot pay for at the end of the month

Cut Your Credit Cards

If you have a serious problem with controlling your credit card spending, you have an option to stop using them entirely. You can cut or shred your credit cards and work on paying off the pending debt to get out of debt. Most people cannot bring themselves to cut their credit cards. However, if you are drowning in debt, the only way to avoid bad credit is stop using credit cards. If you don’t make this decision, you will end up accumulating debt that will completely take you under.

Bottom line, you can stop using credit cards to avoid bad credit. However, as we have discussed, credit cards can still be beneficial only when used in a responsible way. To live a debt free life, you have to break free from the vicious cycle of spending more than you earn. The more you borrow, the more you end up spending. You can also work with a professional credit company to help you consolidate your debts to allow you to make easy payments.