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.
• Do not hold multiple credit cards:  Credit cards are easy to acquire, and several banks even approach you with offers on buying a credit card. The more credit cards you have, the more you will spend, so an effective tip to avoid credit card debt is to ensure that you do not get overburdened with multiple credit card payments every month. And to ensure this, just keep one or two cards for emergencies and not more than that.
• Do not use your credit card as a loan tool:  Many consider credit cards as a quick loan tool as it can be swiped for a bulk amount anytime you want instead of having to apply for a loan in a bank. However, the interest rates for credit cards are much higher than other types of loans. Also, when you skip payments regularly, the accumulated principal and interest debt can multiply rapidly. Your credit card is just a convenience tool, so avoid overusing it.
• Never opt for cash advances:  Almost all credit card companies offer cash advances against their credit cards, but one of the most vital tips to avoid credit card debt is to never opt for this. The Annual Percentage Rate (APR) of cash advances can be as high as 20-25%, resulting in you having to repay much more than you borrowed. This is a great cause of concern and stress, so always keep liquid savings to deal with emergencies.

As long as you use your credit card for convenience and pay off the due amount regularly, credit cards are useful financial tools.