Credit card is an important ally of the consumer to make purchases easier, more practical and safer. But this facility still scares a lot of people, especially out of fear of potential debt.
How to carry out this control and not let the credit turn your enemy and even need a personal loan? Check out the tips below.
How to use credit card without getting into debt?
Pay the full invoice amount on time
The purchase cycle for a credit card is approximately 30 days, according to the month. The consumer makes his / her expenses during this period and, in the end, the administrator adds everything and sends the invoice.
In order to avoid the collection of interest, it is essential that the total amount be paid until the expiration date of the ticket. Always remember that credit card interest rates are quite high.
Simply paying the bill in cash makes the cardholder pay only for what they have spent.
Avoid bill payment
The month is up, the credit card bill has arrived and you have realized that the amount is higher than expected. Did you plan to install? Avoid!As in the case of late payment, the rotational interest rates for installment payments are very high. Thus, the final value of the invoice divided for the next months will be much greater than the simple sum of your purchases.
In addition, if you plan to continue using your credit card, the amount to be disbursed in the coming months will always be increased by the portion of that unpaid invoice.
Evaluate your finances well and see if you really can not pay the bill in full.
Understand your credit card rules and invoice
Knowing the interest rates charged by the administrator is one of the tips when requesting a new credit card. Keeping in mind the rules you agreed to when applying for the card can help prevent debt distress.
Analyzing the bill that arrives every month in your house or in your email can also be a good way to be more aware of unnecessary expenses and even curb charges for transactions that you did not perform.
Evaluate the advantages of making a purchase with your credit card
From the payment of a simple coffee to the purchase of a trip, are you the type of people who pay all their purchases with the credit card?
This can be a positive aspect for those who participate in point or mileage programs. But do not forget that at the end of the month all that must be taken at once.
Once again we suggest you check out our tips on when it’s worth buying with a credit card.
Keep track of your credit card spending
Remember from time to time what the expenses you have done with the credit card that month avoid scares when opening the invoice.
A simple measure, such as keeping track of transactions, or even previewing the invoice on the bank or administrator’s website, gives you a clearer view of the ideal time to cut back on spending or, in extreme cases, stop using your credit card .
Avoid impulse purchases
When you see a product in the shop window, do not you think twice about getting the credit card out of your wallet and taking that item home? Think about it: do you really need that device or that clothing? Or is it something that will end up turning into yet another product that will stay against your closet or shelf?
Before you buy, evaluate if that is the ideal time to spend. It may be worth leaving for later.What is your tactic to avoid getting into debt with your credit card? Tell us!And if you get in debt, count on Jericho Wintech to make a payday loan or hire some CDC option.