One of the most controversial tools in family financial management is the credit card. There are those who condemn its use, some who defend it. But what everyone agrees is that credit card without financial planning is right problem.
So if you want to use your credit card without having a headache with invoices at the end of the month, you should be aware of these three points:
1. Credit card is payment method
There is a whole mysticism around the credit card. Often plastic is regarded as an evil for those who have problems with compulsive drinking. But what we should keep in mind is that, like cash or a check, a credit card is only a means of payment, nothing more than that. So if used consciously and planned you will have a lot to enjoy using the card.
2. Credit Card Requires Tight Control
The biggest mistake for cardholders is not keeping track of spending during the month. Those who seek to know the amount spent on the card only when the bill closes have a 99% chance of getting into a snowball. Therefore, set a credit card limit and track your bill at least once a week. If you have reached the stipulated amount, it is time to leave the card at home and wait to be able to use it again. Another tip is to launch all purchases made with plastic in a financial control tool, thus having a more accurate monitoring of movements.
3. No Success Without Financial Planning
As I commented earlier, there is no happiness with credit cards if you do not have a financial plan. It is through planning that we have goals and control for the conscious use of credit. It is also with planning that we can tell how much we can increase in monthly consumption or the need to reduce our expenses.
So, before you go around parceling out your purchases, work out your financial planning and consider whether or not having the card is a good idea for the moment you’re going through.
Enjoy finding the best credit card for you and your family by comparing the options available here in our simulator!