Due to a lack of financial planning, many people find themselves under a mountain of credit card debt. In fact, over 40% of those living in the country have racked up huge credit card debts in recent months. As the debt starts to accumulate, it becomes increasingly difficult to repay the amount and the interest incurred over time. However, you can reduce and avoid debt with thorough planning and the right approach.

Here are few strategies that can help you pay off or reduce your credit card debt:

• Make a payment plan for your credit card
  Once you have evaluated the amount of debt you owe, it is essential to come up with a practical plan for paying your dues as soon as possible. The two main approaches to repaying debt on multiple credit cards are the snowball and avalanche methods. In the snowball method, you start by paying off the smallest loan and make your way up to the largest loan. In the avalanche method, you do the exact opposite. Even if you can’t make large payments, you should pay more than the minimum amount every cycle. If you can, you should consider automating your finances.
• Create a budget for yourself
  If you are not left with enough money at the end of the month, keeping up with your credit card repayment schedule can be challenging. To avoid such situations, you should make a budget for yourself. This ensures that you are cautious while spending money and can ultimately pay more toward clearing your debt. Prioritize keeping money aside for fixed and periodic expenses and try to reduce your budget for variable costs. Sticking to your budget can help avoid spontaneous and impulsive purchases.
• Consolidate your debts
  You can consolidate your debts into one account if you have multiple debts but a decent credit score. This way, you can tackle the entire amount with just one payment per month instead of having to track numerous expenses each month. You can do this by either picking up a short-term loan to instantly clear all your debts or by transferring your credit card debt to a single 0% balance transfer credit card.

If this is the first time you are using a credit card, you might be scared of the idea of being stuck with a large amount of debt. However, if managed in the right way, a credit card can be an excellent tool to improve your credit score, allowing you to have several added benefits.

Here are some tips that can help you stay out of credit card debt:

• Keep track of your spending habits
  The main reason behind incurring extensive credit card debt is using it for things you can’t usually afford. Instead of using it on impulsive and expensive purchases, it is essential to buy things that you can pay for at the end of each billing cycle. If you can, try reducing your variable expenses. This way, you can contribute more toward your savings and emergency funds, which might help you pay off a future debt quickly.
• Always keep up with your card payment schedule
  Whenever you get your credit card bill, it is important to pay your dues before the due date to avoid any extra charges and interest on the amount. Missing your credit card payments frequently can easily snowball into a massive amount of debt, which can be avoided by simply paying your bills on time.