How to Avoid credit card debt

Living within your means can be done. You don't want to be a slave to the credit card company, do you? Learn what to do to stay out of credit card debt. This how to video will give you the tips. Credit card debt is a slippery slope.

You Will Need

* Budget

* Debit card

* Willpower

* Jar for change

* Savings account

* Odd jobs

Step 1: Calculate monthly expenses

Calculate your monthly expenses—right down to how much gum you buy—and compare that with the money you have coming in.



Step 2: Scale back

If your expenses exceed your income, see what you can live without. Keep slashing away until you have enough to live on, plus at least $50 a month you can put aside for unforeseen emergencies.

*Tip: Don't forget to factor in periodic expenses like birthday gifts, haircuts, and school supplies.

Step 3: Cancel your cards

Cancel all your credit cards except one. Tuck that away for emergencies.

Step 4: Set low limit

Ask the credit card company to set a low limit on your card.

*Tip: Throw your change into a jar every night; when the jar is filled, put the money into a savings account.

Step 5: Use debit card or cash

Use a debit card or cash to pay for all purchases.

Step 6: Find extra work

If a large unexpected expense throws off your budget, consider taking on part-time work or odd jobs like babysitting until you're caught up.

Step 7: Celebrate

Now celebrate your freedom from debt—but not so much that you end up back where you started!

*Fact

The average American household has $9,000 in credit card debt.