Owning a credit card can be a double-edged sword if the proper use of this instrument is not known. The credit limit granted by the bank is seen as an extension of cash you have, and is not necessarily so. We must be clear that a credit card does NOT mean a raise: you must spend (with or without card) only what you can pay month after month.
1. There are no quotas without interest. Rather, at no cost. The charge with credit cards is divided into:
to. Interest rate,
b. charges for the maintenance of the service
c. and insurance that are applied to the service.
So when you say they are installments without interest, there is often a little clarification that mentions the total financial cost. That means that, though not charge you an interest rate, you will pay a fee for using the card.
2. Shopping without interest for the 1st year. Buy in installments “no interest” is a very good alternative to finance your purchases, particularly those larger amounts.
To. To make your profit is important:
A. No shopping in installments without simultaneous interest – if you cannot afford both cards, sooner or later end up hacienda the “minimum payment” with the interests that may exceed even 60% annually What you just saved on the one hand, you end up paying very expensive for. The other.
B. Very likely that the item is being sold him already added interest and add it to the price for the “public”. It is almost certain that if you do a search, this article can be found in another shop for a lower price.
3. Cards with discount plans. The benefit is clearly higher, but also the risks of falling into temptations and “mismanagement” of the wallet.
to. Market research determined that, given the incentive discount, the consumer does not benefit the benefit to save, but takes it as an opportunity to buy more with the same money he had available. Conclusion: spending ends up being greater than initially expected.
4. Cards with no usage fees. A true aberration, if you do not use your card at least once a month will charge commission for non-use.
Promotions and payments in installments. Not always mean lower spending or a better business. Precisely campaigns shops, supermarkets and shops are designed, ultimately, to buy more (and no less). .
It is illegal to charge interest on interest. If you are late with your monthly payment on your card, banks can offer a restructuring (lowering interest rates) or installment plan to resolve to fulfill its responsibility; however, if you return to fall behind on your payment, you cannot charge interest on interest.
To avoid these risks, the key is to have command and control over expenses. Before making a major expense, define the budget and evaluate options to deal with the purchase.
Use the card only for what is really needed.
It is advisable to use the card from the day following the closing date and during the first days of the period because the greater the time period between the purchase and the payment date. If liquids the total amount of purchases made during the period, you will not pay interest. “If the cut is tomorrow, you should not use the card today, but later, to prevent this amount add interest.”
It sets a limit of approximately expenses. This will prevent you make impulse purchases which you’ll regret in the future.
Keeping a tight control of expenses incurred with the card and all receipts for purchases made.
Pay before the due date indicating the statement. You pay double the minimum payment required to decrease the debt.
Lee and reviews the extra fees for annual fee. Replenishments, additional cards and if payments were made in the previous period appear.
Try not to use as many cards as’ll lose control of expenses you do with them.
DISCIPLINE is the key to spending. When planning your expenses, imagine you win a 5th part less and adapt yourself to that standard of living. This form also will generate savings capacity.