Six Strategies for Staying Debt-Free

Tuesday, December 9th, 2014
Updated: December 9th, 2014
The content is accurate at the time of publication and is subject to change.

If one of your resolutions for the approaching New Year is to get–and stay–out of debt, you may be tempted to lock away your credit cards and vow never to use them again. But there’s no need to be afraid of using your cards. The truth is, credit cards are a very useful financial tool. Used the right way, it’s even possible that credit cards can help keep you out of debt. Here are six ways to stay debt free, all without tossing your credit cards.

1 – If you’re still trying to get out from under an outstanding balance, transfer the debt to a new credit card. Look for a balance transfer credit card offer that gives you at least a year to pay down debt without paying any interest. If you’re paying off a balance on a high-APR credit card, the savings could be in the hundreds, even thousands, of dollars, and shave years off the time it takes you to pay off the debt.

2 – Make a budget. If you haven’t, sit down ad write down how much you make, how much you spend, and how much you need to spend each month. Use financial planning software, a money management app, a spreadsheet, or just a plain old pencil and paper, but make sure you write down your fixed expenses, discretionary spending, debt payments, and income. If your spending outpaces your earnings, decide where you can make cuts.

3 – Implement a mandatory waiting period before making any big purchase. If there’s something you need and it costs more than, say, $50, decide how long you’ll wait before pulling out your payment information. If you still want whatever it is after 24 hours or a week, then go ahead. This will cut down on impulse spending and help you stay out of financial hot water.

4 – Consider taking a part-time job in addition to your regular job, so you can earn a little extra to pay down debt or stay out of it. If you want to spend more, you need to earn more. Moonlighting, freelancing, starting your own business, or working a few extra hours can make a big difference to your bottom line.

5 – Use credit cards wisely. If you’re not in debt, don’t be shy about using credit cards to finance big purchases. Use rewards credit cards to get the most bang for your buck and rack up points, cash back, or travel rewards. Just be sure to pay off all your credit cards in full each month, unless you have zero percent interest on purchases and have made a plan to pay off the balance before the interest kicks in.

6 – Keep a close eye on your credit reports. Order a copy from each of the big three credit bureaus once a year, at a minimum. Make sure all the information is correct and there’s no hidden medical debt or other nasty surprises on your credit report, and you’ll reap the rewards of a high credit score.

Following these six steps will keep you debt free and help use your credit cards without guilt or worry.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Balance Transfer Cards Guides

How to get rid of your current debt? May 23rd, 2023

Effective ways to consolidate your debt. Trying to pay off debts is tough, especially if you have several debts with steep interest rates. Debt consolidation is something you might want to think about in order to streamline your debt and cut down on your monthly payments. Debt refinancing is the process of taking out a […]

Continue »
Do These 3 Things After a Balance Transfer to Maximize Your Savings December 25th, 2020

After requesting a balance transfer, it usually takes about 14 days before the actual transfer is completed. However, receiving the long-awaited message from the card issuer that your funds have been successfully transferred is not the final step. After this, it is very important not to forget about some important things you better do so […]

Continue »
Got a Balance Transfer Credit Card Denial? Here Is What You Can Do April 14th, 2020

Once you understand you are carrying balances on one or several credit cards under huge interest that you cannot pay off quickly, it may be wise to consider transferring those debts to a new balance transfer credit card. Most such cards come with a 0% intro APR on balance transfers for 6-21 months, which can […]

Continue »
How Does a Balance Transfer Affect Your Credit Score? March 16th, 2020

If you have one or even several credit accounts with considerable balances and huge interest, probably, considering a balance transfer to consolidate those debts is the best way out. But before you apply for a balance transfer credit card, it’s not out of place to assess all possible pros and cons. And, first of all, […]

Continue »
5 Easy Steps to Fulfill a Balance Transfer February 5th, 2020

Once you decide to apply for a balance transfer credit card in order to consolidate all your debts, get lower interest rates or earn more rewards, you most likely begin to wonder how to accomplish the whole balance transfer process and benefit from it. Let’s start with the basics.

Continue »
Best Credit Offer
Best Credit Cards from Credit-Land.com
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 BestCreditOffers.com All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by BestCreditOffers.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.