Understand the advantages of paying with a credit card, the best times to do so and take the opportunity to organize your finances.
We often talk about the risks of using credit cards in an uncontrolled manner, the extremely high interest rates and the snowball effect that all this can have. But do you know when it is a good idea to use a card to benefit your finances? Do you know all the advantages that this payment method has to offer?
Here we will teach you how and when to use it and you will see: the bill will close!
Let's go?
Organizing payments
It may seem controversial, but organizing your credit card payments can be easier than using cash or debit cards. This is because throughout the month you can check the progress of your bill every day and put the brakes on if you think you're going to overspend.
If you are one of those people who prefer to use spreadsheets for your monthly budget, the fact that the bill is paid on a single day means that you can check all your expenses and enter them into your control at once, so that you can deduct the amount you had planned to spend in that period.
Breathe fresh air in your pocket
Buying without having the exact amount of money on hand (or in your account) is another great advantage. A credit card gives you a breathing space of approximately 30 days until the payment date.
We don't recommend that you commit financially to something that you won't be able to afford later, but who knows, maybe this isn't the time needed for your next salary to arrive or for you to receive that long-awaited commission?
In cash or in installments?
You need to buy something that costs much more than you can spend in a single month. This is another time when your credit card becomes your ally: spreading the amount over installments can be a great help in cases like this.
To make you even happier and more secure with your installment plan, we have put together 3 simple tips:
– Whenever you are going to make a purchase in installments, check that interest is not being charged on this payment option. To ensure this, check that the final purchase amount matches the cash amount;
– To avoid the feeling that you are paying for something you no longer use, avoid paying a huge number of installments: no one likes to pay for a course or a trip much later, right? Our recommendation is the advance, so by the start date, you will probably have paid it off or be very close to it.
– Remember that installments also consume your card limit. You may need it in the future and exceeding it is not a good idea, as we said here. (link to what I pay on the invoice)
Security
Imagine having to go shopping with a certain amount of cash in your wallet, taking the subway or bus? In these situations, carrying your card can be a great advantage to keep you safe and avoid headaches such as robberies or thefts.
You may also be thinking about issues involving security when using your card, especially when making online purchases. Therefore, we recommend reading our complete post on security and fraud prevention.
Remember that for everything to work out and for you to stay well away from debts related to your card, it is worth taking the following precautions:
→ Don't have multiple credit cards, this can become a trap when it comes to organizing yourself and knowing the dates of each one;
→ Whenever possible, avoid choosing to pay your bills in installments, remember the highest interest rates on the market and reconsider your options;
→ Know your current expenses and earnings to determine a maximum amount to spend on the card each month.
See?
It is possible to have a more relaxed relationship with your finances and also with your credit card! Tell us if you have ever thought about using your card in any of these situations and how it has saved you.
If you want to know more about this and other topics, visit Descomplica Finanças
