It is easy to be tempted to buy what we need with the ease of having interest-free installments. But, did you ever think about the card business if we don’t pay interest? The objective of the banks is that you are tempted to generate a higher expense than you can afford, thus having to resort to the dangerous minimum payment. That is where the problems begin.
What is the minimum card payment?
The minimum payment is the smallest amount required by your bank to keep your plastic in force and not report you for lack of payment before the truthful. Said minimum amount is detailed in the account summary along with the total to be paid. Let’s make it clear: making this payment implies that an interest charge will be generated according to the agreed rate and VAT of real interest. Paying only the minimum increases the time to settle the credit and increases the financial cost .
For this reason, we recommend that you always try to pay a little more than the minimum because otherwise it will take decades to settle your debt with the bank and the only beneficiary will be the financial entity that will only refinance your Card and collect interest.
How to get out of debt with credit cards?
To begin, before contracting debt, we must do the tasks and know what costs have any financial service that is going to hire. So you can be clear about the costs whatever the situation you face (if you can pay all or have to resort to the minimum payment).
If you already know that you will not be able to face more than the minimum payment of plastic, the wisest and healthiest thing you could do is to stop using it until you can channel your financial situation or just leave them as the last option in case of emergencies.
Finally, once you know the costs of refinancing your card, you can compare between different credit alternatives, including salary advances, these are a way out to end the card refinancing and eliminate the debt with that entity, with interest more convenient In addition, the requested balance is deposited in your account and the first due date is the following month.
Decreasing your debt will allow you to have greater financial freedom in the face of new challenges and projects. Having the ability to detect these types of disorders in your economy is the possibility of patiently improving your finances.
For all this, it never hurts to remember that the responsible use of your credit cards is fundamental and it is important that you inform yourself in detail about how the debt you take is composed, the hidden expenses and what are the alternatives to pay it off.