Credit cards are the main means of debt for Brazilians; the expert explains how to use it correctly
Having a credit card in your wallet can often be a great help to consumers. However, so does the object requires attention regarding its use to avoid attracting debt, especially in a crisis scenario like the current one.
According to the Central Bank, the revolving credit card, i.e. when the consumer is not able to pay the entire bill by the expiry date, has registered R$159.3 billion new loans in the first half of the year. This is the highest level for the period since 2014, when R$174.7 billion was granted, taking into account the adjustment for inflation.
“Indeed, the credit card ends up being a practical means of paying any bill. However, care and caution must be exercised when making payments with this resource. Otherwise, it could become a “snowball” and the person will end up with several debts,” explains financial educator Tiago Cespe.
In this sense, to help you prevent the accumulation of debt, the expert highlights some important tips for you be able to better manage your credit card. Check:
Set a limit on your card
The first step to be able to use your credit card correctly is set a limit. To do this, you need to analyze what monthly income you receive and how much you can spend per month.
So, contact the financial institution and ask them lock your card limit to the maximum amount you can spend. This amount must contain a small amount reserved for unforeseen events.
“Here too it is important not to fall into temptation, because the operator can offer a higher limit. But if the person wants to avoid spending uncontrollably, the best solution is to set a limit. If in a given month a fatal accident occurs and it is necessary to spend more than this amount, it is possible to contact the card center and change it,” explains Cespe.
Pay attention to the invoice
Another important point is always Check your card statement. This helps you see how much has been spent in the month, whether there have been any unnecessary purchases that you can avoid in the coming months, and to get an idea of the total amount needed each month.
“Many people also tend to take out multiple credit cards from different institutions or companies, and if the consumer in question is a wild spender, this could be a problem. When he exceeds the limit on one card, he uses the others, and only notices the damage the following month, when the bills arrive,” the financial educator points out.
However, if you are someone who can control your spending, having multiple card options can even be a good thing, you know? Through them it is possible to obtain some benefits such as miles or even discounts in some products. Another tip is to know the type of credit card you are using and what fees the financial institution charges.
“Due to the daily rush or even disinterest in knowing these fees charged by operators, many people end up paying for services they don’t even use. International cards, for example, tend to have more expensive annual fees, and some people use this type of card even if they don’t intend to travel abroad. So it ends up being something that isn’t worth it,” says Cespe.
Additionally, there are also some credit card options that have no annual fee. So, the ideal is to research each type of card, its advantages and advantages.
Consumer credit card bills
To make monthly expenses easier, some people tend to pay for everything by credit card, as they find it easier to have a single invoice with all the amounts to be paid each month. However, paying electricity, water and telephone bills on the card It’s not very beneficialsince administrators usually charge a fee for this type of service.
Therefore, the better let this type of account be paid by cash or debit. “An important piece of advice is to look for professionals specialized in financial consultancy, as they are able to analyze the consumer’s profile and offer guidance on how credit cards work and how to use them”, concludes the trainer.
Source: Tiago Cespe, financial educator and founder of Cespe Educação Financeira.
Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
