Among the factors that usually compromise the family budget, credit card debts certainly occupy a prominent position.
This happens mainly due to the high interest rates practiced by banks and card administrators, so there is little care when making installment purchases.
Bad financial planning habits are the main cause of household defaults.
Unfortunately, the Brazilian consumer has an immediate behavior and tends to ignore the value of secondary costs such as the fine paid for delaying payment of the invoice or the interest charged for the use of revolving credit. And that is the big risk.
Small expenses add up and, without delay, become an immense amount and difficult to be paid.
However, for people who have a healthy consumption relationship, that is, who are able to differentiate their needs well from their desires and resist the temptations to buy that appear around every corner, the credit card can help a lot in financial planning.
Just use it correctly and take advantage of benefits built into the contract.
The truth is that the credit card brought convenience and security because it enables immediate purchasing power, even if the consumer does not have money at the time of use.
However, to take advantage of the advantages, financial control is necessary, so that the person does not spend more than he can effectively pay.
Those consumers who do not pay the full amount of the invoice are at risk of falling into the ‘snowball’ effect, since today, the average rate charged in these operations is around 300% per year, one of the highest in the world.
Credit card is just a tool
Despite this, you should be aware that the credit card is just a tool, a means of payment. In that sense, for those who know how to use it, it can be a great ally.
Understand that the credit card debt is not the fault of the card, but of the user.
In practice, it is like blaming the car for the traffic accident. The driver is to blame, not the vehicle.
That said, we list below some basic tips that can help in the efficient use of the credit card, making it work as an ally of the domestic economy, from the financial advantages it provides.
How to use your credit card to your advantage
Have few cards
Ideally, you should have no more than 3 cards.
However, if you have, start using a financial control app urgently, to have their effective control.
Usually, those who have many credit cards get complicated because they cannot manage their expenses properly, in addition to the probable additional expense with annuities.
As I already mentioned, you must have a maximum of three credit cards, more than that it is an exaggeration and a gateway to consumerism and, consequently, to debts.
Another tip is to have only 1 credit card holder in the family, as this way the dependent cards will accumulate points in a common way.
With the concentration of family expenses in a single loyalty account, it will be easier and faster to collect points to achieve your goals.
Use the card to organize your finances
One of the most productive ways to use a credit card is as an ally to organize personal finances, according to your budget.
Many people find it difficult to write down every single thing they buy on a daily basis.
Therefore, concentrating certain expenses on the card can be an interesting solution.
After all, by doing this, most of your monthly expenses can be seen in your monthly or partial statement, through the app, internet banking and ATMs.
That is, if you don’t already use a financial management application, obviously.
In fact, if you have not yet tested this possibility, I strongly suggest that you test it, as it will greatly facilitate your financial control.
Anyway, if you still prefer spreadsheets or the notebook itself, this tip of using the card to organize your finances should help you a lot.
Because, one of the advantages that the credit card offers is being able to concentrate the payment of several expenses on a single date of your choice.
Thus, allowing a better control of expenses, since the invoice is very detailed.
In addition, the card also facilitates the purchase of a more expensive item, postponing the disbursement until the date when money is available to make the payment.