Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

Ascent-logo

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of March 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of March 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for March 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of March 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for March 2021.

Get Started!

Loans

Top Picks
  • Best Loans of March 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of March 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • 5 Perks of Having Great Credit

    Credit Cards

    5 Perks of Having Great Credit
  • Judge Says CDC's Eviction Ban Is Unconstitutional. Here's What That Means for Renters

    Personal Finance

    Judge Says CDC's Eviction Ban Is Unconstitutional. Here's What That Means for Renters
  • 3 Money Mistakes I Made as a New Parent

    Personal Finance

    3 Money Mistakes I Made as a New Parent
  • Here's Why I Track My Net Worth

    Personal Finance

    Here's Why I Track My Net Worth
  • The Ascent
  • Knowledge
  • Credit Cards

How to Avoid Credit Card Debt in 2019

by Lyle Daly | Jan. 8, 2019

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Once you get in credit card debt, it's a nightmare to get out. Here's how you can keep yourself completely free of credit card debt this year.

arrow approaching a hole in the ground, going around, and continuing on

Image source: Getty Images

If you've ever been in credit card debt, then you know how much of a burden it is. You need to figure out how much you can put towards that debt every month while leaving yourself money for other bills, and high interest rates just keep adding to what you owe.

It can wreck your finances and even your mental health from the stress of the situation. Fortunately, avoiding credit card debt is all a matter of building the right money habits.

The basics of avoiding credit card debt

To stay out of credit card debt, you need to pay your credit card bill in full every month. That means only using your credit card for purchases you could afford with the money in your bank account and not using it to give yourself a loan. If you can do this, you can reap all the cash back or travel rewards of the best credit cards, without any debt coming with it.

That sounds simple enough, but the allure of being able to buy on credit often leads people to overspending. After all, if it was easy to avoid credit card debt, the average American household wouldn't have $5,551 of it.

Why do some consumers avoid credit card debt entirely when others accumulate it by the thousands of dollars? There are a few things people do that make all the difference.

Know how much disposable income you have

Discretionary spending with credit cards gets people into a lot of trouble. When you know your card has a high credit limit and you won't need to pay off what you buy for 30 days or more, it's easy to say "I think I can afford this" without bothering to check.

Don't play guessing games with your money. Calculate how much disposable income you'll have each month after you pay for your basic necessities and make your savings and retirement contributions. Consider that disposable income as your limit for anything extra that you want to buy.

Build an emergency fund

Credit card debt doesn't always come from frivolous spending. Many times it's the result of expensive emergencies, such as medical bills or car repairs.

An emergency fund will keep you out of debt when these kinds of events happen (and they will happen at some point). If you don't have any money stashed away yet, start saving.

It still makes you wince to spend $800 at the auto shop, but it's a whole lot better to have that money saved than to see it on your credit card bill for the next six months.

Prepare for big expenses

Besides emergencies, you should also plan for any big expenses that you know you'll have at some point. These will depend on your age and lifestyle, but just about everyone has something to plan for, whether it's a vacation, a wedding, or putting new tires on your car.

The consumers who stay out of debt are the ones who think ahead with their saving. Instead of putting that annual summer trip on their credit card and paying for it with interest, they're stashing trip money away in a savings account several months in advance.

Don't make impulse buys

If you're not sure about buying something, there's a perfect solution -- just wait a day or two. Don't pressure yourself into doing it right then and there. Revisit it later after you've thought about whether you really want to spend the money.

I do this all the time, and I've never regretted taking my time on a purchase. I'll put items into my cart or a wish list and then check back later. Sometimes I make the purchase, sometimes I don't, and sometimes I buy less than what I had originally planned. The bottom line is that waiting has saved me from a lot of unnecessary purchases.

Hit unsubscribe

It's a consequence of living in the 21st century. You buy something online, and the next thing you know, the merchant is emailing you every week with incredible new sales featuring items suggested just for you.

You're better off either unsubscribing from these emails entirely or filtering them so you don't see them in your inbox each morning.

One sales email probably isn't going to rope you in, but the problem is that merchants send these out all the time. If you keep seeing them, it's more likely that one of those headlines is going to catch your eye.

Leading a debt-free life

When you look at consumers who don't end up in credit card debt, the primary reason for that is because they take a long-term view of their financial decisions. They don't spend money without considering the consequences, and they prepare for future expenses, both expected and unexpected.

Anyone can build the same habits if they're willing to work at it, which is why committing to a year free of credit card debt is such a smart decision. You're not just going to have one year without credit card debt -- those habits you build will help you avoid credit card debt for the rest of your life.

Top credit card wipes out interest until 2022

If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. It’ll allow you to pay 0% interest on both balance transfers and new purchases until 2022, and you’ll pay no annual fee. Read our full review for free and apply in just 2 minutes.

About the Author

Lyle Daly
Lyle Daly icon-button-linkedin-2x icon-button-twitter-2x

Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance.

Share This Page
Facebook Icon This icon shares the page you are on via Facebook
Blue Twitter Icon Share this website with Twitter
LinkedIn Icon This image links to share the page over LinkedIn.
Email Icon Share this website with email

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Related Articles

Credit cards on a desk image for Best Credit Cards for 2021

Best Credit Cards for 2021

Interest spelled out on a calculator image for Compare Credit Cards Side by Side

Compare Credit Cards Side by Side

Man holding cash image for How Do Cash Back Credit Cards Work?

How Do Cash Back Credit Cards Work?

Cyber security and computer screen image for How to Protect Yourself from Credit Card Fraud

How to Protect Yourself from Credit Card Fraud

Featured Articles

Best Credit Cards for 2021

Compare Credit Cards Side by Side

How Do Cash Back Credit Cards Work?

How to Protect Yourself from Credit Card Fraud


The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool