Most people tend to get into trouble with Credit cards. This, because they don’t know how to use them and those responsible for teaching you don’t do it… or don’t do it so well. Why? Because when you’re wrong, banks make money.
We have all had doubts and/or problems with cards at some point in time, especially when starting our financial life, and since I do not want you to have negative experiences with credit, I am sharing 5 tips so that from January you can start managing your cards in the best possible way. way and make them a friend and not an enemy.
5 tips for credit cards to be an ally
1. Expensive money
The credit cards NOT they are an extension of your salary. It is someone else’s money that charges you interest, in this case, it is money that the bank lends you. Banks will encourage you to use it for emotional satisfaction (things from your lifestyle)
Why? Because the more you use them, the more you belong to them and it suits them.
2. Be total
Being totalero means using the credit card as a form of payment and paying off the debt in full before the date. It is not convenient for the banks that you be totalero because you become a cost for them. When you are not total, you are a utility to them.
3. Minimum payment required
It is the amount that you have to pay so that the bank keeps your credit valid and you become a slave for a longer time. Pay more than the minimum, remember that the minimum is only to avoid interest, not to reduce the debt.
4. Months without interest
Interest-free months are a handy way to pay in installments and the quickest way to get in trouble, too. At first you only think about the monthly payment of what you just bought. However, when you accumulate all your purchases to months without interest, you realize that you are in a bind. Make sure that what you pay monthly without interest is not more than 30% of your monthly income.
5. Default interest
It is the interest that the bank charges when you do not pay on time. If you have wondered why the cut-off dates and the payment dates are not at the beginning or end of the month, it is for you to be wrong. And when you’re wrong, you have to pay default interest and this generates more money for the bank.
Today it is so easy to get a credit card, as it is to get into trouble for not knowing how to use it to your advantage. Better learn to use them correctly and make them your ally. If you follow these recommendations, you will prevent your story from becoming a financial nightmare.