Having a credit card can be beneficial and is necessary for building a solid credit score. However, using one incorrectly can have serious consequences that stick with you for years to come. To prevent future financial distress, these tips will help you learn how to avoid getting into credit card debt.

Don’t spend beyond your means

One of the main credit card mistakes that people make is spending more money than they are able to pay off at the end of the month. While the convenience of credit cards can make it easy to spend beyond your means, it is important to remember that you must eventually pay off every transaction you make—the sooner the better.

Set aside money for emergencies

Life can be unexpected. Having an emergency fund will provide you with the extra financial cushion that you need to deal with unforeseen issues instead of acquiring credit debt to pay off the costs. Setting aside a portion of your budget into creating this fund could save you from a financial disaster in the future.

Stay on top of payments

Missing just one monthly payment can do serious damage to your credit score and lead to hefty late payment fees. Plus, having to make two payments the next month in addition to the late fee could place you under significant financial stress. As such, it is important to set reminders to ensure that you don’t forget to make your monthly payments.

Always pay your bill in full

Interest fees can quickly rack up a large bill. Fortunately, you can avoid them entirely by paying each of your monthly credit card payments in full. Doing so will save you a lot of money and give your credit score a nice boost.

Limit the number of credit cards you own

Having more credit cards gives you more available credit and the ability to rack up higher quantities of debt. Plus, it makes it harder to keep track of all your payments. To simplify your expenses and help prevent you from overspending, aim to keep just one or two credit cards.