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Debts are part of Brazilian life, mainly due to credit card spending, even more so with digital banks making it much easier to access credit that was previously very bureaucratic.
Using a credit card is important, yes, it allows you to purchase higher value items in installments, which eases your finances month after month, but you need to use it wisely to make it financially healthy.
Today we have prepared a complete post with tips to better manage your credit card spending, doing everything possible to avoid large debts and even taking advantage of some benefits that the institutions offer.
Happy reading.
Credit Card Expenses: Learn How to Control Them
Firstly remembering that the card limit It should not be seen as a minimum usage, because if you have a high limit and use it all, the installments will be very heavy and can disrupt your budget.
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Manage this limit consciously and opt for large purchases, preferably with the least possible interest, or even without it.
To do this, it is a good idea to keep an eye on promotions and compare prices and conditions across several companies to choose the most affordable option.
Plus, we have 8 more tips for managing your credit card spending.
1. Have a plan
For example, if your monthly income is 3000 reais and your credit card limit is 2000 reais, this does not mean that you have 5 thousand to spend per month, on the contrary.
If you use up your card's entire limit, the bill will consume more than half of your income, and it may seem silly, but it's a mistake that many people make, especially because the bill is there in the future so when it's time to make a purchase we don't even notice it.
That's why it's essential to plan how you use your credit card, managing your allowance month by month.
Banking apps these days allow you to see upcoming bills, which can help you figure out which months are best for making a new purchase.
2. Don't spend more than your income
Reinforcing the point above, you should never take on credit card debts that exceed your income.
Firstly, mathematically the calculation doesn't add up, obviously, but there is another, even bigger problem.
If you can't pay the full bill, you'll have to pay the remainder in installments. The problem is that the interest rates are very high.
3. Always pay the full amount of your bill
Complementing the tip above, under no circumstances pay only the minimum, as this is a big step towards a gigantic debt.
Credit card interest rates are very high at all banks, and if you pay the minimum amount, the balance left on your bill can end up being much higher than expected.
That's why it's essential to plan and manage the available limit to pay bills in future months, so that you don't have such a high monthly debt.
4. Look for cards with no annual fees or other fees
Annual fees and rates are standard at traditional financial institutions, and this is precisely one of the things that prevented many people from having a credit card.
However, with the arrival of fintechs, digital banks began to offer many card options without fees and annual fees, which is a good opportunity for those who have never had a card to be able to acquire their own.
Even though the fees may seem small at first, don't be fooled, as the accumulation can turn into a large debt.
5. Avoid using for small amounts
The main purpose of a credit card is to make it possible to purchase higher-value items, divided into several installments, so you can get the item without putting a strain on your monthly budget.
The problem is that in the rush of everyday life, we can't resist the temptation to spend a little coffee on our credit card, but the accumulation of these small purchases can be harmful.
We are not saying that it is forbidden to buy small things, we are just warning you to be careful about this, as our next tip shows.
6. Always keep an eye on your bill
Especially in digital banks, or traditional ones that provide an app, you can track your bill in real time, and this way, prevent it from becoming a monster.
For example, it is possible to fit in a small purchase, if the bill is not too high and there are only a few days left to “turn the card over”.
In fact, this should be considered in your planning, as turning the card over means closing the invoice, that is, after a certain date, the expenses on the credit card will only appear on the following month's invoice, so it is easier for organize finances.
7. Reduce the number of cards
The ideal is to centralize your credit card spending on just one, but often the available limit is not that high, and we inevitably add more cards.
The only issue here is that with more credit cards in use, there will be more information for you to control, so it can be a much more dangerous management process.
In the best case scenario, avoid using both cards at the same time, and what does that mean? It means that the ideal is to only start using a second (or third) card when the previous one has no limits, because then it helps to have better control.
8. Take advantage of rewards/miles clubs
Many credit cards offer a benefits club, with several advantages, such as miles to buy airline tickets with discounts, or even points that you can exchange for products.
Before taking advantage of this service, just check what the fees are, but overall it can be worth it.
Did you like the content? Read other articles on the subject on the Consulta Cred blog!
Conclusion
Avoiding credit card spending is something that helps keep your finances healthy, but it is not always possible, so the best way is to make more conscious use of this tool.
By taking advantage of these 8 tips, you can manage your credit healthily and purchase the products you've always wanted.
Finally, to compare the best options for line of credit, fees and the like, the Consulta Cred has the solution for you, check it out.
