This article is reprinted by permission from NerdWallet. When times are tough, credit card debt may be inevitable if you’re learning to manage credit or are forced to make risky financial decisions due to hardships. For Lydia Senn and her husband, who are Alabama residents, this was their reality during the Great Recession in 2008 after she lost her job and he took a pay cut. They relied on credit cards to get by and accumulated around $14,000 in debt.
“We got our debt paid off in 2014 and we decided to just do a no-credit card lifestyle up until 2019,” says Senn, who documents her financial journey on her YouTube channel. “We don’t want to rack up high interest debt, so we’re very strategic and intentional with how we use our credit card.” Having a plan may help you avoid debt or keep it manageable when money is tight. If your circumstances allow it, consider alternatives before making credit card mistakes that make it difficult to bounce back.1. Don’t keep spending as usual Change your budget if inflation or other circumstances are jeopardizing it. With today’s inflation, Senn adjusted her budget to include the growing charges of gas, and internet and cell phone bills on her credit card. “Look at the budget and take a hard look at those needs versus wants,” says Katie Bossler, quality assurance specialist at GreenPath, a nonprofit credit counseling agency. Senn’s grocery bill went from $125 per week for a family of six to $225. Trimming this bill isn’t an option since her husband has lupus and requires an autoimmune protocol diet. “It’s the difference between him thriving and being in daily pain,” says Senn. To balance rising costs, she scaled back in other areas and opted for alternatives. Weekly family dates at the local coffee shop moved to her patio. The family now dines out and travels less, and the kids a …