How to use your credit cards without getting into debt

How to use your credit cards without getting into debt

Are you tired of getting into debt because of credit cards? In this article, you will discover some really useful tips that will change the way you do personal finances. Keep reading and learn all the details. 

Are you tired of getting into debt because of credit cards? In this article, you will discover some really useful tips that will change the way you do personal finances. Keep reading and learn all the details. 

Have you heard about how dangerous debt is? According to specialists in personal finance, getting into debt is not really as bad as it seems, as long as you fulfill your commitments correctly such as paying your cards on time; In addition, this helps you build a better credit history.

Using our cards or any type of credit, already implies a debt, and this does not mean that it is bad since, if we are punctual with our respective payments, it will reduce or eliminate the debt, and our credit history will increase considerably.

Credit cards are a double-edged sword. Although once you get one there are doubts or you feel a little fear of being in debt up to your neck, these can give you opportunities for a better quality of life or end your finances, your peace of mind, even your future.


Avoid setbacks in your economy:

Using our cards or any type of credit, already implies a debt

1. Ability to pay line of credit

You should always remember what is the maximum amount you can pay per month. To do this, subtract from your income your ordinary expenses such as the pantry, payment of services, rent, etc. If after making accounts you still have money available then that is your monthly payment capacity: you cannot acquire debts whose monthly amount exceeds your available money, or otherwise you run the risk of falling into default.

2. Cut-off date and your payment date

The cut-off date is the day of the month on which all your purchases will be counted during the last 30 days. And from that moment you have 20 days to pay, until your payment deadline. There are those who have more than one credit card, and the dates probably are not the same. For these cases, we recommend having an Excel file with the cards and their respective times.

3. Commissions and surcharges

The cut-off date is the day of the month on which all your purchases will be counted

You can add a column to your control and reminder records where you also include commissions and surcharges. Some institutions make surcharges for not using the card, so it is good to keep them in mind to avoid unnecessary charges.

4. The annual interest rate and minimum payments

It is extremely important to know the annual interest rate and the minimum payments, it is basic to know how to use a credit card. The interest rate is the percentage that your debt would increase if you stop paying. That way your debt grows interest on interest.

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