Have you thought that credit cards are a monster to which you must flee at the highest speed?
Throughout our financial life, we have considered that credit cards are the worst acquisition we can make because we believe that with their use the only thing we are going to do is worsen the situation we are going through and that we will end up taking on more debt than what we were
This initial perception has an explanation and is linked to the education we were given as children and to the management they taught us, we should give money. Basically, we are programmed to spend more than we have and to consider a danger the intelligent debts and see them as something negative in our lives.
Today we want to talk to you in particular about credit cards because their usefulness has been very controversial and some people consider them as an irresponsible and excessive tool. We, on the contrary, want you to see them as a lifesaver and an opportunity from this moment. Read carefully each of the following steps, and keep them in mind before requesting or accepting one of these
1. Read your contract carefully, especially the small print
When you acquire a credit card, the bank must make you sign a contract in which it explains what your obligations are, but also what your benefits are, to the latter you must pay more attention than you think, because they will be your lifeline in case of losing or steal your card
Some credit cards come with insurance that becomes effective after you lose your card and make the respective complaint. This despite being a good option, does not prevent you before the problems, for it, there is insurance in case of accidents, contrary to previous insurance, because it is a previous protection that can shield you and avoid problems when your card disappears.
2. Pay special attention to handling costs
Do not take the card without even knowing how much it will cost you to have it, ask for the interests, for the monthly, annual and other costs that it will represent in your life. You can also request a training in which they teach you how to use it in the best way, in which they explain how you should project your payments in a beneficial and less expensive way for you.
When you acquire a credit card, the bank approves a quota of money on which you can decide, however, do not advance to make purchases or withdraw money on impulse, keep in mind that you must give it an intelligent use, if not, consequences can be fatal.
3. Finance payments within your budget
Do not overdo what your financial reality allows you, do not acquire obligations or commitments that you will not be able to assume because they will exceed your limits. This must be your premise or objective at the time of making purchases and scheduling payments.
Our advice is that you start ordering your finances, in what way? Writing the reality of your income and expenses according to the priorities and payment dates, in this way you can know in more detail what money you can allocate for the monthly payments of your credit card and you will never be short of money.
4. Pay the total of your balance and in a timely manner
Paying the totality of your card is the must be, the ideal is that you program your purchases to a single quote, in this way many interests are not generated and you will always have available the total quota of the same. However, this is something that almost never happens, since what you usually do is to defer the installments in as many months as possible, believing that this will make it easier for you to pay.
As a tip, the more months you give to pay, the higher will be the interest that you must cancel, and the longer it will take to pay for something that maybe, you can do at once if you organize in the way indicated. Try to buy everything in the least number of possible installments, so you will have a greater order in your finances.
5. One purchase at a time
Do not give up! If you approve 5,000,000 does not mean you should spend them all immediately, prioritize, make a list of things you want to buy and buy them one by one, so it will be much easier for you to make payments.
Set a limit to pay the monthly installments, define, depending on your income, what is the top of the monthly installments and from this, make decisions about how much you can get into debt or if you definitely can not do it at the moment.
Remember that having a credit card is a lifesaver for you, because it is money that you can always have available if you handle this small plastic correctly, something you must keep in mind, is that you also have credits at Rapicredit that you can renew month after month if you make your payment in a timely manner and that you can use them the way you want.
Debt consolidation programs are good for you, that can get you out of trouble and allow you to have a more quiet and orderly finance.