If you have a friend or someone in the family who has many debts, and most of them have to do with your credit cards, it is common that you have begun to fear that little plastic that seems to have the power to make our lives miserable.
It also happens that when the financial situation becomes difficult, many people are afraid to use the credit card for fear of ending up in debt.
Cause of many penalties
The truth is that credit cards, as well as being the cause of many penalties, can also be a very useful tool and make life easier for us in many ways. Everything is in the use we make of this great tool. The key is to inform us and know everything we need to know to be a responsible consumer and make excellent use of our credit.
Here, some recommendations to become responsible consumers:
Know your card right and wrong.
Even if you feel lazy, you should read the contract and the terms of your credit card. The main thing to consider is the credit limit granted, the interest rate for purchases, fees and cash availability, costs (maintenance, commissions, etc.) and the payment dates.
Be punctual in your payments
May the cutoff date not surprise you. If you fall behind, interest begins to run for each day of delay and the worst is that this interest is usually greater than what you are already paying for your purchases.
Do not withdraw cash from the card
Interest rates are much higher than those of a purchase and in addition, certain fees are charged for this withdrawal. Withdrawing cash, even if it seems like an easy way to get liquid money, is one of the ways to misuse it.
Pay more than the minimum
When you make the minimum payment your debt will take longer to be canceled because you are only paying the interest of the month. Organize your expenses so you can pay more and thus end your debts sooner than previously thought.
Do not exceed your credit limit
The limit should be set according to your economic situation and the income you receive, so spending more than you can afford is imprudent. On the other hand, if you have enough money to spend more, take into account that many cards charge a penalty for exceeding the established credit limit, so it is not appropriate.
Don’t forget that in David Balfour you can find the credit card comparator, where you will see all the market options as well as the benefits that each one offers you, so you can choose the one that best suits your consumption profile.
Financial education is essential to maintain a good financial situation. Using these tips, you will enjoy using your card and at the same time you will stay away from debt.