Credit cards are an excellent tool for acquiring items or services that without it could not be acquired due to lack of cash at that time, however, they must be used responsibly and with basic knowledge of credit.
You have a tache if you consider your credit line as an extension of your salary, well, it is not.
It is money that the bank lends you and you have to pay it, maybe you think I’m talking about obvious things, but it isn’t, even if you don’t believe it.
On the other side of the coin there are customers who pay the total of their debts , such as a credit card user who gave her opinion of how to use the credit card in a social network of a national media.
“… The best card depends on you and your preferences , however in any scheme you can get the best benefit if as in this case they offer you zero annuity in exchange for the use of plastic. As a tip, you can buy your super, gasoline or other normal monthly expenses that do not go out of your budget and liquidate them immediately before your next payment date… (sic) ”.
You, how do you handle your credit cards?
I don’t save because it doesn’t reach me!
Surely you have heard that sentence countless times, or you have shouted it yourself on some occasions, but how true is it? in truth, it is not saved due to lack of income or it is because the proper administration of finances is not carried out.
In an earlier post I mentioned that it may be considered more than a pretext, but a reality and that income does not really give to save. Simply the basic basket had an increase of 0.20% in the first half of February, according to data from the National Consumer Price Index (INCP) 2018.
Without a doubt, it is a blow to the family economy. However, there are unnecessary expenses that are made without analyzing what the acquisition will give you. If the purchased does not add quality of life, but quite the opposite as: stress, fights, bad mood and more indebtedness, without a doubt, it was not worth it.
Real cases that arrive at High Debt
Young person of 22 years, monthly net salary $ 8,000 pesos and a debt of $ 500,000 thousand, how do you get to that point?
She, destined the total of its income to the payment of its debts, only covered minimums, but added to that pump; He withdrew cash from his plastics to pay for others, that is, he only rode the money, which is very expensive. It depends on the plastic you have, but the percentage of commission they charge for withdrawing cash from the credit line is between 1.5 and 30 percent, according to the International Bank.
Upon arriving at the first call of High Debt , the advisor told him that he had a serious debt problem because, good personal finances dictate that you should not allocate more than 30 percent of the income to the payment of debts, without a doubt, she exceeded. Even so, he refused to cancel the credit cards, but he was crying out (that is to say) to help him pay his debts because he had already gotten into trouble with his relatives, what need?
What is letting you keep your credit cards? And what is escaping you for not saving?
This whole roll goes because it is necessary to evaluate the cost-benefit that is giving you what you are paying, because of not generating any, the ideal is to cancel and save the amount that is destined to that.
That’s what I mean by: various insurances, renting a cell phone, renewing your cell phone for a new one, the million dollar question, why do you do it? By necessity or by status. More clothes! you need her? And so we can enlarge the list.