Credit cards can become a financial drug. The more you use them, the more you are addicted to spend. True, this is what credit card companies want. They encourage all cardholders to use their credit cards as often as they can by offering 0% interest terms, exciting rewards points, promotions and so on.

Over the past few years, a growing number of young people have become victims of credit card debt. Knowing that teens are more aggressive and easily tempted to spend by using their own credit cards, credit card companies drive these innocent ones into financial peril. However, thanks to the New Credit Card Law for 2009. Companies are now prohibited from issuing credit cards to young people under 21 years old without consent from their parents or guardians.

Even adults are not exempt from credit card debt. If you are a credit card holder, you’ll have to fight your own battle to avoid bad credit. Recovering from debt may not be easy but, you can do it! All you need to do is set a goal and cultivate self-discipline. Listed below are some friendly reminders to avoid bad credit;

Keep track of your purchases. Carefully examine your purchases through your own copy of receipts. This helps you to double check if it matches with what is printed on your monthly statement. Thus, you will clearly see if there are purchases that are not yours or misprinted. In case of false charges, you can dispute about them right away.

Pay your bills on time. Paying bills promptly means having a good credit history. Enjoying good credit history will help you if you need to apply for insurance, a car loan, or a home mortgage later on.

Pay the full amount due. If you have sufficient funds, it is advisable that you pay your total amount due in full to avoid paying finance charges.

Do not lend you credit card to “so-called friends”. Don’t lend your credit card to anyone.” Money is the root of all evil”. Even a person whom you know well can misuse your card. So why put yourself and your friendship at risk?

One credit card is enough. Bear in your mind that when you purchase with your credit card, you are spending “real money”, a bill or a coin. Having just one credit card keeps you away from temptation.

Avoid cash advances. Credit card companies’ offer cash advances so you can get quick cash without submitting collateral. But don’t forget that cash advances carry higher interest rates than purchases.