Credit card debt is one of the most common ways you can get into financial commitments without even realizing it. When you do not clear your entire credit card bill due for a particular month, the balance amount becomes your credit card debt. The bank levies interest on this due amount and with every month, you end up accumulating more debt. Here are a few smart tips to avoid credit card debt: Buy only what you can afford:  This is one of the most important tips to avoid credit card debt. Owning a credit card does not mean that your buying capacity has increased. Except for the fact that you can clear your credit card bills in the next cycle, there is no difference between cash payments and using a credit card, so make it a point to buy only what you can afford to pay for. Have an idea of your disposable income for the month:  Disposable income is the money you have in hand after paying for all your essential expenses, and this money can be spent as you wish. Track your expenditure records for a few months and determine your average disposable income. Then, make it a habit to not make credit card purchases beyond this figure.

A savings account is a type of bank account where you can deposit your money over a period of time. The bank safeguards your money and also pays you a certain amount of interest for the amount. If you are a student in the country, managing your finances is very important. Here are the benefits of savings accounts for students and the top reasons you should get a savings account right away: Student savings accounts are easy to open:  Are you a student in the country? If so, it is very easy for you to open a savings account in the bank of your preference. All that a bank needs are a few basic ID proofs and an application form to be filled. These accounts can be managed online:  Unlike when you had to constantly visit the bank if you wanted changes in your account, be it for withdrawing money or for requesting statements, your savings account can be managed online. This is one of the most important benefits of savings accounts for students. There are usually no minimum balance requirements:  Most banks require their customers to maintain a minimum balance in their savings account. Having said that, this rule is quite relaxed when it comes to students, and most banks do not require a minimum balance to be maintained in a student savings account.

A credit score reflects the trustworthiness of a person based on their credit history, and in our country, the FICO score is the most commonly followed model to identify a person’s credit score. If your credit score is low, you may face a problem getting a loan and credit limit from banks. So, here are a few tips to follow if you’re wondering how to improve a bad credit score: Know your current credit score:  Based on the FACT Act (Fair and Accurate Credit Transactions Act), every citizen of the country is entitled to a free copy of their credit report from various credit reporting agencies once a year. Make the most of this and keep track of your current credit score. Also, you will know how to improve a bad credit score only after analyzing your current position. Set reminders for monthly payments and installments:  Most people have different kinds of loan payments, credit card bills, and other financial commitments every month. Make a list of all these commitments and set reminders to pay off your bills to prevent unnecessary late charges. This goes a long way in improving your credit score. Pay more than once in a cycle:  Do you have a low credit score?