With credit card rates continuously increasing, card holders are now more at risk of getting stuck in debt. Do you own a credit card? If yes, you should pay more attention with how you use that plastic in your wallet.

This article contains some pointers on how you can reduce your credit card costs and how to stay away from credit card debt.

Low minimum pay isn’t always as good as it seems.

Credit cards use the low minimum payment offer to attract consumers but instead of being a good thing, this feature can actually be a disadvantage. Some cards allow minimum monthly payments as low as 1%. Of course, credit card companies are okay with this set up because that is precisely how they make more money from their customers. For the card holder, submitting only the minimum pay each month can be a dangerous habit. Remember, the longer it takes you to pay off your balances, the more costs you’ll be paying as well.

Charge only what you can afford to pay.

The best way to avoid uncontrolled debt is to pay them off right away. For instance, if you used your card to make a $500-purchase for this month, make sure that you can pay it back in full before your payment due date. This way, you can avoid the additional interest charge and you minimize the risk of debts from accumulating.

One or two credit cards should do.

Having multiple cards in your wallet presents a bigger temptation to spend more. Financial experts recommend owning only one or two credit cards- one for regular use and the other one for emergencies. Having several credit cards in your name does not really pull up your credit score. What matters most is how well you keep up with your payments.

Check your account regularly.

As a card holder, you need to pay close attention to your account. Make sure that you’re not being billed for purchases you didn’t make. In case of unauthorized transactions, call your credit card issuer right away to clarify the charges. In addition, you should be aware of the rates and costs of your card. Has there been any change in your interest rate or fees since you signed up for the card? Remember, credit card companies can increase your rates at any time as long as you’re given the 15-day notice. Do you read the mails that your credit card company sent you? Are you updated about your card’s terms and conditions?

Get a debt consolidation credit card.

If you currently have balances on each of your credit cards, you may consider applying for a debt consolidation card or a balance transfer card. This will enable you to combine all your debts into a single account for a lower interest. Usually, a balance transfer credit card offers a zero interest period, which means you can pay off the balances you transferred over without worrying about the interest.

Nevertheless, choose the card that you want to consolidate your debts with carefully. Find a card with a longer zero-interest period and that offers a reasonable rate even after the introductory period ends. Don’t forget to check the rest of the fees such as the balance transfer charges, late penalty charges, annual fees, etc. After transferring your balances, do your best to complete your payments within the given 0% period.