Credit cards tend to generate an illusion of ” buy without paying ” until we get a super high month summary. Here are some suggestions to get along with your card.
Always try to pay the entire summary
Each month has to be like a start from scratch with the card , which means that you should not drag debt from one month to another. That way, you’ll start the next month from scratch, with the blank page. In order to pay the entire card, we recommend that you do not exceed the use, it establishes a monthly limit of expenses.
Do not lose your balance of view throughout the month, to make sure you do not lose your rhythm in order to stay within your maximum spending limit. If after two weeks you already spent 80% of your spending limit, you will know that you have to make adjustments during the rest of the month.
Do not make the minimum payment
In accordance with point one, we recommend that you never make the minimum payment of the card. If you don’t pay the full amount, always try to pay a little more than the minimum. When financial difficulties begin, the first option is usually to make the minimum payment of credit cards . While this may seem like an excellent idea, the truth is that you are making your debt bigger and bigger, since the interest on the minimum payments is very high.
It is better that you adjust your expenses to pay as much as you can of your outstanding balance on your credit card or minimum make the payment of the minimum amount to not generate interest, which you can see in your statement every month, since this will give you It will save a lot of money on interest. You can reduce your expenses for a while, at least until your debt is minimal and under control.
Do not use the credit card for daily purchases
The card should be an item intended for purchases of high value products for financing and should not be used to buy perishable products. This not only increases the value of these products because of the interest that the credit card has, but also generates an imbalance in your monthly budget, since it is necessary that you have enough money to cover your daily expenses.
Do not use plastic as an extra income
If you are out of debt and silver is not enough for you, it is common to resort to the first resource you have on hand: take out cash from the credit card. This occurs among those who forget that the cards are a payment instrument in which a certain amount of Ben Baste is lent under the promise that it will be returned almost immediately. Not taking this into account, many people consider the credit line as a regular income, which affects the real perception of their ability to pay.
If what you need is extra money for a particular reason (an unforeseen one), you can compare the interest charged by the card versus an on-the-spot loan like Ben Baste. They are specially designed to cover expenses that you did not have in mind and will allow you to return the money in two installments.
Pay one card with the other
Unfortunately, many people try to solve a debt problem by paying the debt of one card with another. This situation could generate a snowball effect whose result would be an even bigger debt than the first. If you see that it is going uphill to pay the card, what you have to do is stop using it to freeze the debt.
So you know: if you want to have your card in order you have to control your expenses, pay more than the minimum of your summary and not use it as a Ben Baste income.