Ways to avoid credit card debt

4 ways debt sneaks up on you

RICHMOND, Va. (WWBT) - The number one way debt sneaks up on you is a lack of a budget.

You get to the end of the month and notice you’ve exhausted your pay check, and you’re putting everything on a credit card to pay for groceries and prescriptions.

To stop this behavior, you need to create a budget for every dollar. You also need to stop charging your vacations on a credit card.

Cherry Dale with the Virginia Credit Union says it’s a good idea to use your credit card, not a debit card while traveling. It’s easier to dispute charges on a credit card than it is to do the same on a debit card, but she says you need to have a quick plan to pay off what you are spending.

“So, it absolutely makes sense to charge and reserve your vacation on a credit card, but how easy is it just to maintain that balance and just pay the minimum payment?” said Dale.

Another way we rack up debt without realizing it is children’s activities.

Whether it’s back-to-school shopping or band camp or travel for sports - you need to look ahead at the calendar and save money for those things.

Another big red flag is if you’re paying down a credit card with a credit card. That’s when you may need to reach out to a professional. Financial coaching could get you back on track.

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