If you handle snakes every single day of your life for fifty years, what are the chances that you will get bitten? You do not have to be a rocket scientist to conclude that your chances of being bitten will be very high.
The same is the case with credit cards as well.
If you use your credit card for years at a stretch, what are the chances that you will end up in a debt trap at least once? You may be disciplined as far as finances are concerned.
However, there may come a time when you will end up in a debt crisis even though you are not to blame.
How to avoid this? Do we just give up and wait for the debt crisis? The smartest option is to voluntarily try to reduce your credit card debt to zero.
If you do not keep any balance pending at the end of the month and repay the entire amount inside the grace period, you can avoid this problem completely.
However, if you owe money or you keep a revolving balance, then a couple of emergencies will quickly push you beyond the limit.
You should try to bring your card debt to zero.
It does not matter how difficult or unnecessary it may seem.
You should deliberately try to achieve this goal.
It is only when you work towards this goal will you understand how difficult it is to actually reduce your debt to zero.
Even if you succeed, the debt will be back to its high levels in just a month or two.
This approach will teach you very important lesson- it is very easy to incur credit card debt but very difficult to repay the same.
If you have a successfully brought balance on one card down to zero, then try to do the same to all your cards.
Once you successfully keep your card debt under control for a few months, you will discover that you make less financial mistakes.
You will identify those points where you used to let your card debt run out of control.
This will make improve your financial planning.