When acquiring a credit card many times we get excited about the «unlimited» money that this entails and we don’t think about the large debts that they can bring if we don’t know how to use them well. It is important that we review our outstanding debts and make a payment schedule.
According to Sergio Soto, employee of the Infocorp risk center, “from January 2018 to January 2019, the total amount of credit card consumption increased by 13%”; he also explained that according to the company’s reports, the Conservative women are the ones with the greatest amount of debts along with modern ones. After these results, we share some tips that you can follow to avoid losing with this payment method:
- Meditate about your needs. Get a self-assessment on this new need. Do you really need a credit card? How much can you spend? Can your income cover the monthly expense?
- Project from the beginning your spending limit and what is the use you will give your card
- Do not pay the minimum total price. You must remember that when you pay with your credit card it is a borrowed money that will then be collected; Do not forget to pay the total amount of the month so that you do not generate larger debts that accumulate.
- Do not exceed your monthly budget. Keep track of your cats and prevent them from exceeding your monthly income.
- Compare the benefits of each bank. Choose to acquire your card at a bank whose benefits align with your lifestyle and financial needs. Some companies offer installment payments without any interest or discounts on some services, these are the most recommended.
- Do not exceed the payment time. Credit cards can save us from trouble in an urgent purchase, but it is very important that we cancel the money on the scheduled date to avoid being charged excessive amounts for a late payment