Credit cards are easy to acquire and so are credit card debts. Credit cards should be limited to the amount payable by the customer per month. A customer should analyse their pay packet and then apply for credit card limits which correlate to their income. Credit card interest rates are thrice the average mortgage rates. A late payment could be as high as sixteen percent. A credit card holder should choose a card according to his/her requirement. Overestimating your credit limits result in paying these higher late fees. Reward schemes are available at a cost of hundred dollars yearly fee. The itch is that one has to expend twenty thousand dollars to adjust with the rewards. It is similar to spending without any money on hand and acquires points that could never be exchanged.

More and more people are shifting to visa debit or pre-paid cards to purchase and stopped relying on notional money. This is the only alternative to get out of debt culture. A refinement of the system is required, where people should know their buying capacity before they spend. Unwanted buying will lead to debt crisis that could ultimately result in bankruptcy. Always depend on cash, though cash may not be safe to carry around at all times. This is where debit cards and pre-paid credit cards come into play. These help to keep a check on your spending volume. Credit card dealers charge vast interest rates. Some of the creditors charge three times mortgage rates too. Lofty interest rates leads to bankruptcy in the end. The best technique to avoid debts arising from credit cards is by not using them at all. Always use cards only in a dire situation. These cards are temptations to buy unwanted possessions and must be controlled.

First preference to get out of credit card debt is to clear all you outstanding debts by pooling your savings. Secondly dump your credit card and forget about it. Saving accounts pay only two percent as interest, whereas a credit card interest is around eighteen percent. There is no good in obtaining lower interest and paying higher for debts. The next big question is minimum balance. The minimum balance moves to five percent on your outstanding balance. Minimum balances are never used to cover debts. It can never be considered an option to clear debts. Some tips to stay away from credit cards debts are to deactivate your card once all your debt is covered. Use your savings to clean up debts. In case saving is insufficient to cover your debts opt for debt consolidation. Debt consolidation is grouping all your loans under one head and repaying them in one go. This is considered a reliable option instead of paying multiple lenders. Debt consolidation offers lower interest rates for loans. Repayment could be made on a monthly basis. Never be tempted to acquire more cards as it could turn to be disastrous. More cards mean more repayments and hence, more interest. It is ideal to settle for one card. Stop using credit cards if debts are more until quittance are made.