The holiday season, both Christmas and New Year’s Eve, is accompanied by countless activities, social events, gifts and more. It can become a chaotic time for the personal or family economy in some cases, if expenses are not regulated.
Having a credit card can be an ace up your sleeve in certain situations, however, if we do not manage it properly it can become a headache, even more so when we have several. A credit card allows its users to take advantage of its advantages, such as creating a credit history. That is, using the money I don’t have for an investment or particular expenses.
Tips for using plastic money:
- Always review the account statement in detail: Every month, financial institutions send a summary of the account, whether physical or digital, which compiles all the movements made. “It must be organized according to your budget, so that the plastic money is used according to what was planned so as not to exceed the use of the money I have,” comments the dean and professor of Finance at the Universidad del Río, Francisco Parodi.
The cases in which you should not use your credit card
- Save all payment receipts: This is a good practice to keep track of accounts. It helps to have real evidence of what is reflected in the account statement. “Having the receipts allows us to analyze the situation, review expense by expense, penny by penny. Make use of the new tools offered by banks to compare the expenses they make compared to previous months,” adds Parodi.
- Analyze expenses with the support of specialized digital tools: This practice is very important since it allows you to identify how money is being spent, which areas or types of expenses take up the most money and whether they are fundamental areas or unnecessary.
- Plan future expenses: Once consumption patterns have been identified, it is advisable to define a personal and family budget. Considering that a value must be allocated for savings.
- Do not lend your debit or credit card: In Ecuador it is common for people to lend their card to family or friends to make purchases or withdraw money. It is important to consider that the card is for personal use.
Paying for supermarket purchases with a credit card is one of the main mistakes when using plastic money
How to get out of debt
Stop using your credit cards. Even if you have more than one credit card, it is better not to have them within reach for a long time. If you can’t spare yourself that much anymore, keep just one in your wallet.
Don’t let the debt continue to increase. Continuing to pay “whatever you can” is not a good decision, because the amount that is not paid continues to generate interest and consequences.
War economy. The goal should be to pay off the debt. For this, the family or personal budget must be adjusted to its maximum expression. (YO)
2023-12-20 15:43:35
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