The credit card has numerous advantages, such as the use of points and miles, discounts on services, cinemas, stores, among others. But you must know how to use it to not get into debt. A common mistake people make is to spend more than they earn. For working code for the credit card, this is important. And then they cannot pay the full amount of the invoice, have to pay high interest, charges, and the debt becomes a snowball. Here are some tips for using your card properly:
If you only have one monthly income, it is best to have only one credit card. No more stuffing your wallet with cards of different flags.
The credit card limit must be a maximum of 50% of salary
This saves you from spending more than you earn. Even if the bank has given you a higher limit some flags offer very high limits even without the person asking. Keep 50% in mind and set your own limit. Example: If you earn $ 1,000 a month, consider the $ 500 limit on your card spending.
Be careful when making fixed installments
As when you install a purchase, you end up compromising the future months of the monthly budget. Avoid paying the minimum portion of the card. If you have a financial imbalance, try looking for another line of credit that does not exceed 3% per month. A payroll is an option.
Beware of financial mismatch.
If you are unable to pay your card bill, it is a sign that something is wrong. Make an urgent financial diagnosis to know where the problem is. Usually, we go to installments in really small values and when we see the debt is already high.
Say no to consumerism
Always ask if you really need it, if you have the money to buy, and if you will be able to pay the full card bill on the due date.
Negotiate the annuity
Don’t be shy about calling your credit card company and asking for a waiver or discount on the card’s annuity fee. You do it every year and you can do it. You say as soon as you cancel the card and they offer me a discount. Also, there are cards that do not charge any maintenance fee.
Look for the benefits that credit cards offer, such as points and miles programs. Opt for the one that gives you the most advantages.
Track your purchases.
Most banks already offer credit card applications where you can track your spending, billing for the next few months, you can know all about your expenses so you don’t get out of hand financially. You can also set up mobile notifications for every purchase you make.
Make a plan.
Using the card requires a lot of discipline and planning to use it correctly. Knowing your average spending, what you owe, and what you should pay off first is very important to your good financial health.
Conclusion: one last tip:
Are you out of control with your card payment? So stop using it, hide the card and only get it back when you pay off everything. Otherwise, you will be tempted to spend even though you are in debt.