Time goes by, but I always hear the same thing from my friends, “Credit cards only break one person.” Really, if you look at reality and statistics, you will see that of all people with debt, 80% or more have problems with credit card. However, we have, on the other hand, 20% who gets along with the “little monster”, how can they?
As humans, we always try to find a culprit for everything, and when we’re in debt the credit card almost always gets the blame. Due to the increase in income and, consequently, the purchasing power of some families, this “little monster” reached thousands of people. And this is for a very simple reason: the card is a tool to easily release credit to people, and also exempts stores from liability for possible defaults.
The idea is not to understand where it came from, or where the indebted are going, but to learn how to stay away from the avalanche of endless debt and invoices. Below I share 4 key tips for you to learn how to get the most out of your credit card:
Set aside part of your salary for the card.
Thus, you will always have to pay the invoices. For example, I set aside 20% of my income for the card statement. So I know that my bill can’t exceed this amount, otherwise I will have to cut down on leisure or other expenses that I can give up. Never limit your card as a supplement.
Usually the indebted people count on the value that the card has as a “limit” to add to the income. This is the worst kind of debt. Learn that credit increases your income, only slightly increases your purchasing power. If this point is unclear, the best thing to do is not to use your card.
Pay invoices on time.
Always paying the minimum or failing to pay your card bills is asking you to get into a gigantic debt. If for some reason you became disorganized and could not pay an invoice, stop spending until you are on time. The snowball start along with the first delay. Think carefully before you have more than two cards.
It is very easy to lose control when you have multiple cards. Prefer to work with two or at most three cards, remember that what I said in the first tip and that the amount reserved should cover all the cards. Avoid store cards unless the benefits are really beneficial.