Proper handling of your credit card is essential to avoid spending more than you can afford. Although at the beginning we only use it for some specific expenses, it is very easy to start taking it everywhere and gradually use it for more and more purchases. How to avoid overindebtedness with our plastic?
Pay attention to these basic tips and use them to strengthen your financial habits.
1. Set a limit amount
Experts recommend that, at most, allocate 30% of your income to pay debts. Then, taking into account your salary and your current debts, the total amount should not exceed that percentage. Perform the calculations so you can have that limit present.
2. Know the costs of default
Remember that, due to late payments, you must pay a penalty or late fee. This amount helps increase your debt. Also, know your billing cycle, as this will allow you to be very clear when you should make your payments and when it is convenient to buy to have more time to pay.
3. Plan your purchases
When it comes to using your card, it is better to plan. If you have in mind to make some purchases, divide them by month, so as not to exceed your monthly expense or pay very high fees. It is best to schedule those purchases in months where you are more comfortable and not with additional expenses.
4. Enter a minimum amount to use your card
This means that the expenses you can pay with your plastic must be greater than a certain amount, otherwise, you must pay them in cash. This will help you think clearly about how much you are spending and whether or not it is worth the purchase.
Do not forget that from time to time new options appear in the market and you should evaluate if any suits you better than your current card.