Sometimes it happens that one is not aware of the expenses made with the credit card until the account summary arrives and realizes the amount of purchases that were made and the fees that were added to pay.
Credit cards tend to generate that illusion that one can continue to buy total will pay in installments … or will pay next month when they pay the salary . The problem comes when we use this resource uncontrollably and we exceed our expenses.
To make good use of the credit card and avoid having financial problems, Hans Brinker suggests following the following tips:
- Take advantage of it to facilitate payments or to cover emergencies. The credit card is a great help, if you use it within your budget and authorized line of credit.
- Take advantage of interest-free fees . This can help you get to buy that product that you loved so much and could not with the cash of the month or to take advantage of a discount. In this way interest-free installments will help you freeze the price of the product and be able to use it immediately. Check your economy before making any purchase, since it never hurts to emphasize that these purchases should always be within your limits .
- Do not consider the card as extra money to spend above your ability to pay. If you use it for daily consumption you can accumulate a debt that will later be very difficult to pay. ” Never spend more than you earn” should be our premise when using plastic.
This way you can avoid having disastrous consequences while ordering your economy.
It covers your payments on time, since every time you stop paying on time and form, you apply an interest on the debtor, which makes the debt larger as the days go by. This can lead to a negative record in your credit history as a penalty. Therefore, the payment of the plastic should not be something that you have left at the end of the month, if you get the money. It is preferable to cut other things, but always cancel the total amount of the month.
- If you fail to pay the entire account, try to pay more than the minimum monthly payment signal. In order to reduce the amount and term of your debt, and thus maintain control of your accounts payable.
If you see that you cannot control the consumption with your credit card, leave it at home and do not have it at hand.
- It is not advisable to request a loan to cover debts , but if you feel that you have already used up all your resources and do not arrive with the cash to meet the minimum installment, you can request an advance at a lower interest rate than that of your card. So you can pay the plastic bill.
However, we must keep in mind that this does not become an uncontrollable debt and we have to be consistent when buying and not exceed our expenses.
The credit card is an excellent financing tool , but we must avoid using it in excess if we do not want it to have a detrimental impact on our economy.