Advertisements are everywhere. We are exposed to different kinds of products and promotions every day. The latest gadgets, clothes, shoes, beautiful sceneries and air flight promotions- just to name a few. Advertisements play a big role in encouraging people to buy new things. In this matter, we are tempted to grab not only what we need but also what we want which may not always be important.

Many people are inclined to make purchases thinking that they can charge it to their credit cards and pay at a later time. Most credit cards offer 6 – 12 months of 0% interest rate which makes it more tempting to buy more than we need.

True, having a credit card is an advantage. You can use it in case you do not have enough cash or many people use credit cards because it’s safer than carrying cash. But be warned! This small plastic card can easily put a person into a bad debt situation if not used responsibly. Buying with a credit card is totally the same as borrowing money. It is simply a "buy now, pay later" method. But in all borrowing situations, you must pay back the money you borrowed on time. If not, you will soon find yourself deep in debt and possibly with bad credit.

How can you use a credit card to your advantage and prevent it from putting you in a deep financial hole? What can you, as a responsible card holder do to avoid credit card debt? Listed below are some helpful tips to avoid bad credit:

Keep track of your purchases. Do not throw away your purchase receipts. You can use these receipts to examine if all charges in your monthly credit card statement are correct. This way, you can be sure that you are only being charged for purchases you have made.

Pay your bills on time. The new credit laws do allow you a bit more time to pay your credit card bill, but it’s better to get in the habit of making all your payments when they are due.

Pay the full amount due. Credit card companies require you to pay just the minimum amount due, but this is another trick that allows them to make more money off of you. The remaining balance is still subject to interest. To avoid credit card debt, pay the full amount, or as much of it as you can afford to help lower your balance.

Do not lend your credit card to a "so-called friend". A person you know or even your best friend might ask you to swipe your credit card for his/her purchases and promise to pay you later. Remember, your personal account and your credit history is at risk. You will suffer the consequences if your card is misused.

One credit card is enough. The more credit cards you have, the more you’ll be tempted to purchase. Credit card companies use exciting offers and promotions to attract cardholders. Be smart! Do not just grab what seems to be an "exciting offer"without first considering how you plan to repay the amount you charge.