Tip 1: Ditch your credit card, get a debit card!

A lot of people have managed to get themselves into trouble with their credit cards. In large part it was because they used them in an inappropriate way. When you have credit cards it is hard not to use them. In the past you pretty much had to have a credit card in order to make certain transactions. That is really no longer the case, these days you can make most of those transactions with debit cards.

The problem with credit cards is mainly the very high interest rates that are charged on them. A credit card is one of the most expensive ways to borrow money that there is. A big part of the problem is that most people don't realize just how much they are paying in interest with their credit cards. It creates a bit of an absurd situation where people will shop around to get the best price on something and then buy it with their credit card and end up tripling the price because of the interest payments they have to make.

The other issue with credit cards is that it is so easy to spend money that you don't have. When you use your credit card you are borrowing money, this is something that a lot of people don't realize. Just because you have room left before you reach your credit limit does not mean that you can afford something, it simply means that you can borrow that much. It is not generally a good idea to be borrowing money for things like meals; unfortunately a lot of people will use their credit cards on things that they really shouldn't be used for. This leads to a many of the problems that people have with credit card debt.

While credit cards can be a problem it is not simply a matter of getting rid of them. There are times when you are going to need to have a credit card. Try booking a hotel room or renting a car without one. This creates a bit of a problem, if you have a credit card there is going to be a temptation to use it and many times it will be used in a way that is not appropriate. This leads to issues with debt. Fortunately there is another option available: the debit card.

A debit card is one in which you have to deposit money which is then debited from your account. This is different from a credit card in that you are not borrowing money. That means that you can't go into debt and you don't have to pay interest. It also means that you can't spend more money than you have. This should help to keep you out of financial trouble. A debit card can be used for most of the things that you need a credit card for so there is really no reason that you need to continue to have a credit card.