How to use a credit card and do not get into debt

Tips / by admin / December 19, 2019

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1. Carefully read the agreement at registration

It is the most important piece of advice in a situation where you have to sign any papers. All we heard it a million times, but for some reason many still hope for a miracle and initialed without looking documents.

Therefore it is necessary once again to repeat the contract read carefully. Pay particular attention to the grace-period restrictions and bonuses on your credit card.

Grace period

This grace period when interest for the use of money from credit cards are not charged. Depending on the bank and the type of card grace period can range from a few days to several months. And you do well to remember these dates.

Restrictions on credit card

Some operations may be subject to interest or commission. These often include cash withdrawals at ATMs and money transfer from the account to the account.

Bonuses by credit card

It happens that the banks offer nice things for the active use of borrowed funds. It may be a mile or keshbek discounts from partners.

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However, to bonuses should be treated with caution. If you have a black belt in personal finance management, you will be able to benefit and get into debt and not to fall. The rest of it is better not to get involved.

2. Turn off the debt before the end of the grace period

You carefully read the contract and keep in mind the date of completion of the grace period is better than their own phone number. Business for small: return money by credit card before the expiration of a grace-period. If you do not, the bank will fine you for late payments and begin to charge interest on the money borrowed.

As a rule, the credit card rate offers rather big: an average of 20%. Therefore, the debt will grow fast enough. If you miss the point, in the near future you will spend all available funds to pay interest and not be able to extinguish the loan itself.

Your global goal - always return the debt on time and do not overpay.

3. Do not pay by credit card everyday things

If you do not have enough money for food, rent and clothing, do not rush to issue credit card. Map - this is only an illusion, that means you become more. In fact, it only allows you to transfer a portion of the earnings from the next month to the current. Accordingly, your future income is automatically reduced to borrow the amount you will have to return.

When the money is not enough for everyday things, need to work on financial management or try earn more. Debts in your case - a quick and easy way to make the situation even worse.

4. Use a credit card for insurance

The best way not to splurge on your credit card - do not use it. However, to have it in case of force majeure as possible. For example, a credit card handy if you have a broken refrigerator or stove, without which you simply can not do. Or need expensive medications.

Keep the card for purchases necessary and important, but do not get carried away. Use it as a lifeline: it should throw a drowning man. But if a man will constantly go into the water only with him, we will never learn to swim.

5. Use a credit card to save

Some offers shops, airlines, Travel agencies shake their generosity. But to get tremendous discounts, pay need it now. In this case, the credit card and will come to the rescue.

For example, you find that the bike of your dreams, which usually costs 45 thousand rubles, but now sold for 25 thousand. Do you have the money for it, but they are on deposit. And you do not want to lose interest because of early withdrawal. At the same time you can accumulate the required amount without prejudice for 1-2 months. But the stock had just today.

As a result, the most favorable option - to pay for the bike credit card and repay the bank debt in the grace period. So you save 20 thousand rubles and get transport dreams.

6. Do not remove cash from ATMs

Typically, banks are not interested in the fact that you were removed from the cash card. Financial institution makes a transaction, when you pay with a credit card.

Accordingly, if you withdraw cash, the bank will have to make to you, and will take a commission. In addition, a visit to ATM It can result in a reduction of the grace period, or an increase in interest. All additional terms of looking at the contract.

To avoid paying too much, Pay with a credit card or just look for a bank that does not limit cash withdrawals.

7. Repay the amounts larger than the minimum payment

For each credit card there is a minimum payment that must be made to continue to use the card. Usually it is a fairly small amount, very slowly, leading you to repay the debt. And the longer you return the loan, the more you spend on interest.

Return the bank the maximum amount that you can afford to pay off your debt faster. Save time and money.

8. Do not pay by credit card are not available to you things

Enter usually pay by credit card, only those things that you have and so buy with the salary. Moreover, it is desirable that in the case of an emergency you can quickly pay off the debt of the savings.

If you get 25 thousand per month and have accumulated more 30 thousand to buy a smartphone for 100 thousand - a bad idea. Firstly, you will most likely not meet the grace period. Even if the bank is loyal and invites you to use the money without overpayments, for example, 100 days, during which you get only three salary. Together with the savings it will make 105 thousand, and you still have something to eat.

Secondly, if you firedYou definitely will not be able to pay off the bank. A steady increase in interest payments will make the situation quite desperate.

9. Use the bonuses correctly

In some cases, no credit card drives you in debt and saves. We are talking about a variety of bonuses: discounts, miles, keshbekah.

The main secret of this approach to credit card - to spend money that you already have to a debit card or in your purse.

For example, you have listed a salary of 40 thousand rubles for a debit card. Any bonuses not provided by her, but by credit card, you can earn miles for every purchase. Accordingly, you pay by credit card everywhere with you require money, but does not exceed the sum of 40 thousand rubles. A month later, you simply translate the money from a debit card to credit card, debt is fully repaid, and rejoice with the accumulated miles.

10. Remember that it's not your money

The Bank is not a fairy godmother, decided to shower you with money. This is a commercial institution that tries to make you. Keep this in mind whenever pulls credit card out of his pocket. So now you're spending other people's money and give their will have.

Financial irresponsibility can lead to the fact that the "fairy godmother", first you will pay huge amounts of interest and then sell the debt collectors evil.

Another negative consequence of improper use of the card - a spoiled credit history. Do not think that the base gets only a "real" credit information. Even a small debt, returned at the wrong time, can stand between you and a mortgage.