Credit card is a hand in the wheel when making payments, combining practicality with some advantages, such as the possibility of dividing amounts, for example. However, be careful and use the card sparingly so you do not end up getting into debt.
It is not uncommon to meet people who end up messing with credit card debt and committing themselves to spending they can not afford, and which seems to have no end. To avoid this situation or solve the problem, check out our tips today:
Learn how to use the card
When using the card, always keep in mind the percentage of your budget that you can commit to that expense and what is the amount to be paid that month, in a comprehensive manner. Making only minimal payments is the first step towards building a debt that may seem priceless in no time!
If possible, always keep a record of the expenses of the card for your own control, establishing and respecting the monthly limit for its use. It is not because the card offers a limit of 3 thousand reais that you need to spend all this amount, especially if your budget does not hold such debt.
Review your expenses
Once you are in debt, try cutting out superfluous or not-so-essential expenses from your monthly budget to save enough money to pay off debt. Card interest rates are usually calculated at very high rates and focus on themselves, which leads to the famous snowball.
Despite being prescribed in 5 years, the ideal is that the client does not wait the time and removes their debt with the card as soon as possible, avoiding possible constraints and lawsuits. Making a temporary sacrifice may be enough to get the bills back in order.
If the containment of spending was not enough, it might be interesting to negotiate the debt. A good alternative is to seek to divide the debt into fixed installments that fit into your budget. Always keep in mind that negotiation is about an exchange of proposals and that you are not obliged to accept the first one offered. Always look for the best conditions so that you can pay off your debt.
In case of multiple debts, note the interest
If you have debts on more than one credit card, note the interest rates charged on each of them. We are often led to think that lowering debt should be the priority because it would end the matter, leaving it focused only on the larger debt. However, the focus should always be to first remove the debt that charges the highest interest rate, because it is precisely this rate that causes the total debt to grow.
Evaluate, even, seek a personal loan with better terms, lower interest rates. This is the case of Just, for example, one of the Jarndyce family partner institutions that you find within the application.
Do not use one card to pay off another’s debt.
By using a credit card to pay another, you are only exchanging the debt of hands, but remain within the scope of interest charged by administrators and are usually based on the highest rates in the market.
Exchange the debt with a smaller one
If you intend to make a new debt to pay off the card, keep in mind that you need to make an exchange that is advantageous in terms of interest. Look for loans in the market that cover lower rates than you have already paid and ask for the amount needed to pay off all the debt with the card. You will continue to owe the same amount, but at lower rates, which may facilitate your payment.
A very useful credit tool, the card becomes the villain of many households when giving rise to astronomical debts. By following our tips, you can solve your credit card debt as soon as possible and put your financial life on track! Already had problems with the credit card? How did you solve the situation? Comment and share with us your experiences!