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 recklessly, the exorbitant interest rates, and the snowball effect this can all create. But do you know when it's a good idea to use your card to your financial advantage? Are you aware of all the benefits this payment method has to offer?

Here we'll teach you how and when to use it, and you'll see: the bill will balance!

Let's go?

Organizing payments

It may seem controversial, but organizing credit card payments can be easier than when using cash or debit. This is because, throughout the month, you can check your billing status every day and put the brakes on if you see that you are going to exceed your spending limit.

If you're the type who prefers using spreadsheets for your monthly budget, the fact that the bill is paid on a single day makes it possible to check all expenses and enter them into your control system all at once, thus deducting them from the amount you had planned to spend in that period.

A breather for your wallet

Buying without having the exact amount of money on hand (or in your account) is another great advantage. A credit card helps you gain some breathing room, approximately 30 days, until the payment date.

We don't recommend that you make a financial commitment to something you won't be able to afford later, but who knows, maybe this is the time you need for your next paycheck or to receive that long-awaited commission?

Cash or installments?

Need to buy something that costs far more than you can afford in a single month? This is another time when a credit card becomes your ally: spreading the cost over installments can be a great help in cases like this.

To help you feel even happier and more secure with your payment plan, we've put together 3 simple tips:

– Whenever you're about to finalize a purchase in installments, check if interest is being charged for that payment option. To ensure this, verify that the final purchase price matches the cash price;

– To avoid feeling like you're paying for something you no longer use, avoid a huge number of installments: nobody likes paying for a course or a trip a long time later, right? Our recommendation is to pay in advance , so that by the start date, you will probably have already paid it off or be very close to doing so.

Remember that installments also use up your credit card limit. You might need it in the future, and exceeding it isn't a good idea, as we discussed here. ( link to what I pay on my bill)

Security

Imagine needing to go shopping with a certain amount of cash in your wallet, taking the subway or bus? At times like these, carrying a card can be a great advantage to keep you safe and avoid headaches like robberies or thefts.

You're probably also thinking about the security issues involved in using your card, especially for online purchases, so we recommend reading our full post on security and fraud prevention.

Remember that for all of this to work out and for you to stay far away from credit card debt, it's 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 due dates for each one

→ Avoid paying your bills in installments whenever possible, remember the higher interest rates on the market, and reconsider your options;

→ Understand your current income and expenses to determine a maximum amount you can spend on your card each month.

See?

It's possible to have a more relaxed relationship with your finances and your credit card! Tell us if you've ever considered using your card in any of these situations and how it has saved you.

If you want to learn more about this and other topics, visit Descomplica Finanças