One must be aware of the pitfalls and dangers associated with credit card use. Although credit cards are practically indispensable nowadays, due to their practicality, ease and security, they can also bring unimaginable problems, turning into a snowball if we take into account the interest charged for this service, which can exceed 450% per year.
Thus, some experts advise to follow some rules to facilitate coexistence and relationship with this type of service so popular and vital today.
Always keep track of your statement
There is no other way for you to know what happens to your card if you don’t have the habit of periodically checking your statement. Only then can you know if you are spending within your means or not. And this will also help you to be aware of any kind of irregularity or attempted fraud on your behalf.
Do not confuse credit with income
This is one of the most common mistakes unprepared users can make. The credit you have on your card is not the money or extra income you have to spend, so you shouldn’t spend what you don’t have.
Buy the basic items in debit or cash
The credit card should be used preferably for extra expenses, not for everyday expenses, supermarkets, pharmacies, coffee shops, parking lots (it is recommended to pay these expenses with the money from your monthly income).
Never pay the minimum invoice amount
The reason in this case is quite obvious, because the interest rates are very high. Even with the new possibility of installment payments, interest rates remain very high. Therefore it is always preferable to pay the full amount of the invoice or to finance the debt.
Set a spending limit per month. It is important to set this limit. Planning and control are essential for those who want financial health.
Have a maximum of two cards
There is no need to have more than two cards and have to pay more and other annuity fees. Having multiple cards, while tempting and “flaunting,” makes it difficult to control our financial lives and gives us the illusion that we have more money than we actually have. You must be very disciplined to control several cards at once and not fall into the dangerous trap of unlimited credit.
Find out and enjoy about loyalty programs
There are many advantages and benefits that can be enjoyed by the credit card user, such as travel miles program, lower prices and more affordable movie tickets, concerts, theater, earning points for product discounts etc.
Although credit cards can be dangerous and harmful to unprepared people without the slightest notion of financial education.
According to these experts, using the credit card strategically and planned can be a good way to earn money, taking advantage of the card’s abusive interest now in our favor, following a very simple logic.
But for that you need to have a little money and some knowledge in investments (how about following all these issues in this blog?). Depending on the date of purchase, you can pay the card within 40 days; so how about using this period to invest your money until the invoice payday comes? An interest here, an interest there in our favor can make a tremendous difference over time…