Here are some tips for avoiding credit card debt:

Put away plastic:

Don't use a credit card unless your debt is at a manageable level and you know you'll have money to pay bill when it arrives.

Know what you owe:

It's easy to forget how much you've charged on your credit card. Every time you use a credit card, write down how much you have spent and figure out how much you'll have to pay that month.

Pay off card with highest rate:

If you've got unpaid balances on several credit cards, you should first pay off card that charges highest rate. Pay as much as you can toward that debt each month until your balance is once again zero, while still paying minimum on your other cards.

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The monthly payment:

What's amount? Will it stay same or change?

Prepayment penalties:

Prepayment penalties are extra fees that may be due if you pay off loan early by refinancing or selling your home.

Whether interest rate for loan will increase if you default:

An increased interest rate provision says that if you miss a payment or pay late, you may have to pay a higher interest rate for rest of loan term.

The best piece of advice would be to ensure that you can afford loan. Figure out whether your monthly income is enough to cover each monthly payment, in addition to your other monthly bills and expenses. If it isn't, do not take out a loan.

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