Proper handling of your credit card is essential to avoid spending more than you can afford. Although at the beginning I only use it for some specific expenses, it is very easy to start taking it everywhere and gradually use it for more and more purchases. How to avoid overindebtedness with our plastic? Pay attention to these basic tips and use them to strengthen your financial habits.
Set a limit amount
Experts recommend that, at most, allocate 30% of your income to pay debts. So, taking into account your salary and your current debts, the total amount should not exceed that percentage. Make the calculations so you can have that limit present.
Know the costs of default
Remember that, due to late payments, you must pay a penalty or late fee. This amount helps to increase your debt. In addition, you know your billing cycle, as this will allow you to be very clear when you should make your payments and when it is convenient to buy to have more time to pay.
Plan your purchases
When it comes to using the card, it is better to plan. If you have in mind to make some purchases, divide them per month, so as not to exceed your monthly expense or have to pay very high fees. It is best to schedule those purchases in months where you are more comfortable and not with additional expenses.
Enter a minimum amount to use your card
This means that the expenses you can pay with your plastic must be greater than a certain amount, otherwise, you must pay them in cash. This will help you to think clearly how much you are spending and if it is worth it or not to make the purchase.
Do not forget that from time to time new options appear in the market and you should evaluate if one suits you more than your current card.