Learn 5 Ways to Use Credit Cards Wisely to Avoid Debt

These five suggestions will help you avoid debt and utilize your credit responsibly, whether applying for your first credit card or working toward improved spending habits.

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Credit cards can be a helpful tool for making large purchases and building a good credit score. Credit cards also provide perks such as cashback or airline miles, making them even more enticing.

The ease of use of credit cards, on the other hand, might make it easy to amass debt quickly. The average U.S. household with revolving credit card debt in 2021 had a balance of $6,006.

Tip #1: Spend only what you can afford

Paying your credit card bill in full each month is the most excellent strategy to avoid credit card debt. To achieve this goal, ensure you’re only spending what you can afford.

Your credit card is a tool for building credit and paying for larger purchases in small increments; it should not be used to purchase items you cannot afford to pay off within your billing cycle.


The simplest method to avoid credit card debt is to charge only what you can afford to pay back.

Tip #2: Make on-time monthly payments

In addition to paying your amount in full, make sure you spend your balance on time.

Many banks allow you to set up automatic payments through the U.S. Bank mobile app, so money from your checking account can be transferred directly to your card before it’s due each month.

Late payments can result in costs that raise your existing balance and make it more challenging to keep up with regular payments.

If it fits your budget, consider making multiple monthly payments.