Having a credit card is not a problem, and we can even say that a card can make our visa much easier, but unfortunately most indebted people always have problems with the card and in many cases the card is the root of the problems. So the question is what to do not to have problems with credit card?
The answer to this mystery lies in the way we use the card, so we have separated things you shouldn’t do and so stay out of trouble and debt:
Think it’s available money
If you run out of money and you think “buy with a credit card” is a strong sign that you look at being a card as if it were an extension of your own money. This is one of the main dangers.
The credit card, as the name implies, is a credit, that is, an immediate loan type and this means that at some point you will have to pay back. Remember that credit card interest is above 100% per year.
Always pay the minimum
This danger has costly consequences. Paying the minimum is the same as getting into a debt snowball. If you are already in this problem it is best to pay any higher than the minimum so there is a greater chance of paying the debt in less time. Ideally if you are already in debt is to “freeze” them on the card and negotiate the debt with the bank.
Not knowing credit conditions
If you do not know the interest rates, cut-off date, due date, benefits and other details of your card means you are in danger. How can you control something you don’t know? Begin by reading the small print of the contract and understanding possible benefits or rights if any.
This besides a danger is crazy, the interest for withdrawing money from credit card is very high, it is better to apply for a personal or payroll loan than withdraw from credit card. If you have already made this mistake pay attention to item 2 on this list, if it is not your case we advise you to forget that withdrawing money is a possibility .
You may have heard these tips many times, but if they are always repeated it is because there are still people choosing to be in financial danger. Take the opportunity to learn , pass this information on to people you know you need, and remember there are plenty of options on the market. If you consider yourself controlled before choosing any financials, look for the best one for you! Compare here.