Today’s we discuss about using credit card, debit card, pay with cash. What’s better? All those that are getting lost on the credit card. I see a series of holes in this questioning that you put here. First, would it be okay to spend everything on the debit and not the card? Answer: no! The credit card, when well used, it is a great ally financial planning.
Take into account that you have a date for receiving your salary, your income, a primary date and if you have a credit card which expires 2 or 3 days later. If you adequately control how much you will have to pay on the invoice for that card? Basically the money goes into your account and 2 or 3 days later. You pay your invoice, the rest you will pay off the planned commitments, rent, financing, school, health insurance, etc. You have very little money to be worked on for the rest of the month. You have everything concentrated on the card bill, a credit card relationship that even by application, many cards today facilitate that relationship. The credit card gives us a good tool to visualize our consumption behavior and the ability to pay for everything on a single date. You are regretting the fact that you use the card a lot and use almost all the family’s earnings to pay off the card, the error is there, in not establishing rules for using the card.
If you look at your budget, if you check there what part of the budget there are expenses that you cannot avoid, are the bills of water, electricity, telephone, car, property, children’s school, health plan, supermarket, in short, you have items that occupy your budget. The credit card should work, more or less, as another item in which you will stipulate a budget to spend on your credit card. How much is this budget? For example, R $ 400 per month? If it’s R $ 400 per month, your estimate there R $ 100 per week cannot be exceeded. One recommendation is to set a budget, every week get into your card bill over the internet, through the app, over the phone, see how much you already spent that week and if it is on schedule, continue, if it is higher than expected, leave the card at home, changes your drinking habit, but you can improve the regularity of this consumption and make sure that you pay off the invoice, 100% of it on the due date.
From what you put here, asking if it’s worth it make a loan to pay off at least part of the invoice, I understand that you have already entered revolving credit, at some point the invoice arrived at the full amount, you didn’t pay everything, you started paying part of this card in a process already in installments, and the idea is to apply for a loan to pay off that debt. It’s all wrong, you can or should apply for a loan to pay 100% of the invoice, not a part of it the moment you win that card and obviously adjust your budget to be able to pay the installments of that loan that you took on, if these benefits do not fit, something has to be reviewed, you are living a standard of living that doesn’t fit in your pocket. Maybe the car you have, it’s more expensive than it should be, if you don’t have a car, the house you have, it is more expensive than it should be. “But Gustavo, I don’t have a home, it is rented.” The rent you have taken is greater than you can afford.
One step down in the standard of living should give you a financial breath and that is the recommendation. Passing on, debit card is no better than a credit card, because the credit card, in addition to the advantages I mentioned, can even offer mileage for you, some bonus for good use. Another important point: the invoice arrived, can’t pay, automatically, evaluates the possibility of the loan or better than the loan, the possibility of getting rid of something, sell some good that will allow you to settle that bill. If that good is not sold, means that you will try to maintain a standard that didn’t fit in your pocket until now, so be very careful with your choices, they are quite unbalanced.