Having credit cards is not a sign of maturity. In fact, if you don’t know how to use them responsibly, it’s the opposite. Living on credit can be very damaging to your finances. And the time may come for your debts to be so great that neither debt consolidation will be viable.
I want to help you stop living on credit. Learn how you can be more Good Finance and avoid being a victim of unpayable debts. Do not live on plastic money!
Always charge cash
When you go with credit cards at hand you are tempted to use them. It is best to leave credit cards at home, unless you have a scheduled expense with them. Instead use the cash you carry. By using the cash you carry you will better control your expenses. That way you won’t be surprised with the statement of your cards at the end of the month.
Be aware of what it is to have a credit card
Some people believe more by having not one but two, three or more cards in their wallet, but the truth is that this is just money borrowed by the bank.
The worst of this “borrowed money” is that its interest rates are higher, so it is better if you want to show cards in your wallet, which are debit cards.
Make a personal budget
A personal budget will let you know what you are spending your money on. That way you can be aware of how much you are going to pay your debts for the use of cards and what you are paying with them. The above will let you reduce unnecessary consumption and have more Good Finance.
Let’s keep up the trend
In 2014, the percentage of Peruvians who preferred the use of cash to credit cards was 54%. The number of people who use cash for all their transactions is still encouraging today, 39%, which is good in contrast to 6% who only use plastic.
Cash will always be better at poorly controlled credit to keep finances stable and avoid over-indebtedness.