CNBC Points Pro: How to avoid racking up credit card debt

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Credit cards notoriously have exceptionally high interest rates, so avoiding credit card debt is prudent. If you don't want to risk building a big credit card balance, start by creating a plan for your money. You can also consider credit card alternatives, such as secured credit cards or debit cards, which make it harder to overspend.

Regardless of what financial product you use to buy things (cash, a debit card, credit card, digital wallet, etc.), it's important to have a plan for your money. Having a plan doesn't just help you avoid spending too much, it also ensures that your money is being used on what's important to you.

I use YNAB, a budgeting tool based on the zero-based budgeting method. With zero-based budgeting, when you receive money, you assign it to a task or category. When it's time to spend it, you can see exactly how much you have available for that bill or purchase. And when the money is spent, it's deducted from your available funds.

This gives you an awareness of how much money you actually have to spend at any given moment. I've found that it also helps me plan for expenses like car repairs, semi-annual insurance premiums and other inevitable costs that can catch you off guard.

It's important to think about a strategy or budget first. Without a plan, whatever financial product you choose is less likely to work for you.

The problem with credit cards is that you can easily spend money you don't have and not even realize it. When you buy a new pair of shoes, the money isn't deducted from your account until you pay your credit card bill up to 30 days later. That's why I use an app that deducts purchases from my available funds right away.

Debit cards

One of the easiest ways to get around the risk of racking up credit card debt is to opt for a debit card. When you use a debit card, the money is deducted from your account right away. You can even earn travel rewards with debit cards. The options are far fewer, but United MileagePlus® Debit Rewards Card, Southwest Rapid Rewards® Debit Card and Wyndham Rewards® Debit Card all earn loyalty rewards with their respective programs.

You could also earn interest on your money with a high-yield account that offers a debit card. I use a Wealthfront Cash Account and love that ATMs fees are reimbursed for up to two transactions per month and up to $7.50 in fees per transaction, which more than covers my needs.

Secured credit cards

Secured credit cards are similar to traditional credit cards, except that you need a security deposit to open the card. With this type of card, your credit limit is based on your refundable deposit. However, secured credit cards allow you to carry a balance and can have high APRs, so it's not a complete solution.

Certain secured cards automatically deduct your monthly payment from the deposit account. For example, the secured Chime Visa^® Card¹ doesn't charge interest and automatically pays your statement balance from your secured deposit account if you turn on the Safe Credit Building feature.

You need a Chime Checking® account² before you can open a Chime Card. Then, you can qualify for rewards and other benefits based on the direct deposits into your checking account. With 3,000+ in qualifying direct deposits to your Chime Checking Account in the past 34 days, you'll qualify for Chime Prime³, which unlocks 5% cash back in a category of your choice on up to $1,500 of eligible purchases each month.

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¹To apply for a Chime Card™, a Chime® Checking Account is required to apply.

²Chime® Checking Account is required to be eligible for a Savings Account.

³To be eligible for Chime Prime status, receive $3,000+ in qualifying direct deposits to your Chime Checking Account in the past 34 days. To be eligible for Chime Plus status, receive either 1) a single $200+ qualifying direct deposit; or 2) $400+ in cumulative qualifying direct deposits to your Chime Checking Account in the preceding 34 days. Certain products marketed as perks have additional eligibility requirements. While some perks may have associated fees, none of these fees are mandatory to access the perks or to maintain the applicable status. See the Chime Membership Tiers Terms and Conditions for details on all listed Prime and Plus perks.