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6 tips for the responsible use of credit cards at the end of the year

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  • Make a budget.
  • Pay on time.
  • Monitor your consumption.
6 tips for the responsible use of credit cards at the end of the year
6 tips for the responsible use of credit cards at the end of the year

In Mexico, the COVID-19 pandemic practically forced the use of new payment alternatives for people, including access to e-commerce platforms for purchasing essential household items and also for discontinuing financial products and services. Therefore, it is very attractive to have a mechanism by which you can buy goods or services online, especially in the closing season of the year when spending and purchases increase significantly. One means can be the use of a credit card. However, if not implemented responsibly, it can affect your financial stability.

According to National Commission for the Protection and Defense of Users of Financial Services (Condusef)The use of credit enables you to face emergencies, enjoy goods and services when you do not have liquidity. You can even save, invest, or start a business. However, its usage must be moderate and based on your income as it is not an extension of your salary but a means of managing consumption and planning purchases.

José Manuel Piñera, Director of Credit and Compliance at Cumplo México explains: “In theory, a credit card is always recommended because it gives you a better credit history, access to credit and online transactions. Unfortunately, in our country, it is necessary to promote financial literacy in order not to exceed financial capacity and get into difficulties to cover debts. ”

In this context, a study entitled: “Financial literacy around the world“The World Bank and the George Washington University School of Business suggest that only 32 percent of adults in Mexico have adequate financial education. In this scenario, if you are concerned about asking or not asking for your first credit card Keys needed to know if you are ready, the specialist will provide the following recommendations:

1. Make a budget: Think, plan and create a plan to determine a consumption limit that you can set and not exceed so that you can better monitor and control it. Remember that having a thorough understanding of your finances will help you understand your expenses, take better control, and reduce or even get rid of your debt.

2. Pay on time: Find the due dates and payment amounts on your card. It is best to pay the total payment specified by your bank every month so that you do not affect the limit of your credit or have a debt with it. Save the reminders on your calendar and avoid delays or penalties. It is possible that you will be late. However, remember that you will have to pay the relevant interest in the event of isolated occurrences.

3. Monitor your consumption: Frequently enter your banking apps and request notification of your operations.

Image :: Depositphotos.com

Four. Use secure connections: Consult your company in a trustworthy place and in a trustworthy connection. Avoid using Wi-Fi on public networks.

5. Avoid the minimum payment:: The most effective way to create or maintain order in your finances is to avoid the minimum payment, avoid the credit bureau, and keep other loans valid if you request one in the future.

6th Bypass cash withdrawals: Look for other options such as B. a personal loan that you can pay from another income, since the cost of withdrawing money from your card is very high. It is recommended that the cost of the card does not exceed 30% of our income.

Image: Depositphotos.com.

Another factor to remember before choosing a credit card is the reason you want to edit a credit card, such as: B. in emergencies. Situations such as illness, unforeseen accidents where medical fees, hospital expenses, or car accidents need to be covered. They can also be used for promotions as sometimes when you pay with a credit card you can get discounts, payment plans, and even months with no interest. However, always keep an eye on your movements.

In conclusion, the manager noted that “the best financial decisions are made initially with gathering and analyzing information, including using slow, careful, and analytical thinking. Hence, it is time and time to generate healthy finances that include savings a learning process. “

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