Credit card and overdraft payment options are among the main weapons of commerce to attract consumers. If used well, they can become great allies in finance. Even making shopping easier, you have to be very careful not to cross the line and end up all wrapped up in debt.
No wonder these features are called ? emergency credit? The big mistake made by many people is to resort to them as a supplement to the monthly income. That is, use them to cover expenses that have exceeded the budget.
Find out what is the best day to use credit card and before you spend spending around, check your invoices for the number of installments from previous purchases. It's a good way to know if a new purchase won't compromise your finances.
Choose an invoice due date that coincides with the period when your account will have money. For example, one day or one week after receiving the salary.
Always try to pay the full amount of the card statement. If you pay only the minimum, the rest is charged with a fine and interest. Remember that the credit card interest They are among the largest in the market and this debt grows like a snowball.
The limit of credit card It is like a loan that, after being used, has to be repaid. Therefore, do not spend all the limit offered by the bank and if you realize that the amount of the invoice is too high, the ideal is to lower the limit.
Because it is an expensive credit option, whenever the overdraft used, should be covered as soon as possible. When the check starts being used every month, it is a sign that you need to reorganize your finances. In this case, the best option to pay off your bills and debts is to look for a cheaper option like a personal loan.
Overdraft "Protection" - Just Say NO!!! (April 2024)
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