Credit card debt


Filipinos love to be having the luxury of shopping spree especially when they have a credit card. Having a credit card grants, you access to all your needs and luxuries. However, it also poses the probability of credit card debt, which can be hard to repay when you don’t manage your spending.


Keeping yourself away from the good stuff may seem difficult at first but living a debt-free life is far more rewarding than being stuck in the debt quicksand. If you’re having a hard time staying away from credit card debt, read GoBear’s tips on managing a credit card below.

Have a reserve fund

Many people end up in credit card debt because they don’t have any cash to pay off a medical bill or a car insurance premium. In such cases, having a financial cushion when you unexpectedly run out of funds is essential. Save up for an emergency fund and avoid using it to cover your monthly expenses. Your monthly bills are a regular expense so they shouldn’t eat up your emergency fund.

Can’t pay in 30 days? Don’t buy it!

If you can’t pay your balance full in thirty days, then you can’t afford it. Your balance will only increase based on your interest rate. This is how a lot of people get trapped in credit card debt. Stay away from using your credit card to buy things you know you can’t pay in 30 days.

Track your expenditure

Learn to manage your expenses. If you don’t know where you spend your money on, keeping tabs of your expenses can help you manage your finances well. You might be spending a lot more on something than you should, and you may not notice this if you don’t know where your money’s going.

Cut back on your spending

Sure, services such as Spotify Premium provide a convenient, ad-free musical experience, but do you really need them? There are tonnes of expenditures that offer conveniences that you can go without. Thinking of little ways to cut back on your regular expenses will help you save money so you can spend it on the more important stuff.

Prioritize your expenses

Prioritizing and budgeting can be a bit boring, but watching your savings grow instead of your credit card debt is 100% worth the time and effort. Before swiping your credit card on something you don’t need,  pay your priorities first. This way you can feel at ease knowing that your hard-earned money is being put to good use.

Learning to prioritize and manage your expenditures requires iron-clad discipline, but the rewards are worth it. By following these tips, you can avoid credit card debt and understand how to manage your credit card properly can save you a ton.

Looking for credit cards that will help keep you debt-free? Compare credit cards with the lowest interest rates and low annual fee now with GoBear!