Credit card debt can be demoralizing and keep you from being able to attain your financial goals.  But credit cards can be a great convenience and make life easier in many ways.  Taking advantage of the various reward and cash back programs may improve your lifestyle; especially if you need or like to travel.

The trick to holding back credit card debt and avoiding thousands of dollars in interest and other possible fees is really as simple as good financial planning.

First, Put the Shovel Away

If you are already living beyond what you can readily afford, stop it now!  Get out of the credit card debt hole you’ve dug before it becomes so cavernous that escaping seems impossible and don’t build any more.  Control your spending so you can make ends meet without having to borrow.

Second, Create a Spending Plan

The free financial management tools found at www.settleitsoft.com will help you develop a workable budget, which should include your credit card usage with an emphasis on rewards that will stretch your dollars.  For example, if you have business-related expenses utilize a Business Card with Cash Back.  It will provide a separate audit trail of your business costs and offset some of your out-of-pocket.

Even if you don’t fly a lot, a Frequent Flyer-type card can be used for many other purposes – paying utilities, auto fuel and many other normal expenses – which could result in a whole bunch of free travel and other reward benefits.

Since Internet ordering has become a way of life for many of us, many online retailers, such as Amazon, offer cash back reward programs (e.g. Upromise college savings account).

You may also consider a fixed rate loan without pre-payment penalties as a way to help build your credit; provided you make all your payments on time.

Third, Pay Off Each Card Every Month

Proper planning makes this possible.  By assigning a purpose for each card – and sticking to your financial plan – you should be able to pay off the cards and avoid the interest.  Thus holding back the flood of debt that overwhelms so many consumers today.