Getting yourself into serious credit card debt is so easy to do and every year thousands of people in the UK run into financial difficulty because of excessive spending on their plastic. Credit card debt can affect anyone from single mother to rock star to successful businessman and it is estimated that out of the 60 million or so credit cards in circulation in the UK, 70% still have an outstanding balance on them. In addition, it is thought that around 5% of people in the UK have put mortgage or rent payments on their credit card in the last year.

There are many who would say that the best way to avoid credit card debt is not to apply for one in the first place. The realities of modern life make this unfeasible for many people, however. In addition, if used in the right way credit cards can also help you to build up a good credit rating which will help you with any future mortgage applications for example. With this in mind, here are ten tips to help you to be more sensible with your plastic:

1) Live within your means

Tip number one seems obvious but debt problems normally start when an individual increases their expenses every month without doing a proper assessment of whether they can afford it or not. Putting extra expenses on a credit card can become a habit and putting off paying the balance until ‘some point in the future’ also comes all too naturally for some people.

To avoid this situation it is a good idea to use a budget to work out what you can afford each month and ways that you can reduce your outgoings. It is also a good idea to review the budget constantly, especially if your income or lifestyle changes.

2) Sense the first sign of trouble

Sometimes credit card debt can sneak up on you before you know it. It is therefore a good idea to be able to sense the first signs of trouble. These include having to use your card to pay for essentials such as food, clothing and fuel, doing frequent balance transfers to avoid payments, withdrawing cash with your credit card and skipping one credit card bill to pay another.

3) Balance transfers

Many card companies currently offer zero percent interest on balance transfers to their card for a period of up to eighteen months. By doing this you can not only save hundreds of pounds on interest but your outstanding balance will also be paid off a lot faster.

If you do decide to go down this route there are one or two things you should note however. Firstly, you should be aware that most companies will charge you around 3% of the total balance to transfer the balance across. You also need to keep on top of your finances and know when the interest is going to start being charged. If there is still a balance on the card at this time then you can repeat the trick again by applying for another zero percent card.

4) Save up for emergencies

How often have you heard people say that they carry a credit card ‘only for emergencies’? Whilst it is a good idea to have a way of funding an emergency in place, it would surely be better to have an emergency fund than to use a credit card.

Find a savings account with the best interest rate you can find and put any spare money you have at the end of each month into it. When an emergency does occur with any luck you will have put enough away to cover it and this will avoid you having a large credit card bill to pay off.

5) Avoid withdrawing cash with your credit card

Using your credit card for cash advances is one of the worst ways you can use your credit card and a tell-tale sign that you need to do something about your finances and that you are developing a debt problem. As mentioned above, it is far better to have an emergency fund in place and to fix your monthly budget to avoid having to do this.