Budgeting plays a crucial role in preventing the snowball effect of credit card debt. By creating a budget, individuals can effectively manage their finances, prioritize expenses, and avoid excessive debt. A budget helps track income, allocate funds for essential needs, savings, and debt repayment. It curbs overspending and discourages reliance on credit cards for discretionary purchases. With a well-planned budget, individuals can maintain financial control, make informed decisions, and break free from the cycle of increasing credit card debt.
The Role of Budgeting in Avoiding the Snowball Effect of Credit Card Debt