Perhaps you have wondered about the use of credit, because you think that resorting to it could be one of the worst decisions. But not necessarily, it all depends on how you use it. The same is true of online loans, payroll loan and even mortgage.
You can make intermediaries become your allies, so we share the 7 most frequent sins in the use of credit to avoid them:
Use a credit for something you don’t need
It turns out that you consider a bargain that tableware that is half price and with ease of payment at 12 monthly payments, but it turns out that you never prepare dinner at home; When you have guests you prefer to use disposables or plan outings to restaurants. So, is it really an offer that you should pay on credit?
Blessed ease with which people pay with their credit card over and over. In the mall they buy this, they buy the other, they pay here and they pay there. I wonder if that same facility they will cover your debt at the date of payment.
The headache comes when it comes to paying, because our little money goes from our little ones, and the bill comes with a long shopping list waiting for their respective payment.
It turns out that the balance for not generating interest will be impossible to pay and when you add the credit of the car, the mortgage and the other 2 credit cards … This becomes a snowball to which we see at the end.
What to buy on credit?
Buy everything you can afford, but by going a little beyond that answer, the suggestion is that when you finish paying off the loan with which you acquired it, you can still use it.
Never buy a 24-month perfume without interest, if it lasts half a year!
Have several credits at once
The problem is not to have an automobile credit, a credit card, a payroll credit and a mortgage, the problem is that among all, you will only be throwing the “noose around your neck”. It is likely that your income will only serve to pay off your debts and not have either liquidity or the ability to save, or that you live it by making minimum payments.
Incurring excessive costs
Getting carried away by super promotions is a way to incur excessive expenses. Campaigns such as: have 3 months of your salary at the ATM, buy now and pay next year or small hooks and “horrid” monthly payments may sound quite tempting … but, beware! Before saying yes, it is well worth comparing.
Waters with minimum payments!
Generally, people who end up making minimum payments are people who did not have the money to make that purchase on credit. If you did not analyze the feasibility of making those purchases or that you excessively compromised your ability to pay, resorting to minimum payments is not the most effective measure to get out of your debts; On the contrary, they can make your debts unpayable.
Risk your history with the use of credit
Accessing the credits granted by the financial institutions and the good management you give them will help you have a credit history so that you not only have a credit card later, but you can have an automobile or mortgage loan.