Controlling credit card spending may seem like an impossible task for those with red bills because of poor planning. After all, we know that if unplanned and unfulfilled spending is risked, the chances of compromising finances are high.
But don’t worry! If you are in the red and looking for a light at the end of the tunnel, stay tuned for today’s post. Here are 5 secrets for you to better control your credit card spending and to use this service with awareness.
1. Make a financial plan
We can’t talk about spending on the credit card without working out a good financial plan. With it, you know exactly the value of your income, fixed and variable expenses, the destination of your money, and how much you will need to save to achieve your goals.
It is also important to list all financial goals that must be met in a given period, even to motivate the fulfillment of financial planning.
2. Reduce card limit
When you use the credit card and not cash in kind, you do not feel the value coming out of the account, as you spend today and pay, in many cases, 45 days from now. In this sense, the higher the credit card limit is, the more money you consider available for use.
Experts say the ideal is that the limit card should not exceed 50% of your net income, ie the amount you receive after all payroll discounts.
3. Negotiate Annuities
Even if you do not use the card, you will have to pay the annual fee, which, depending on the card and the package of discounts and advantages, can reach $ 300. Whenever possible, try to renegotiate these fees directly with the carrier.
If you use the credit regularly and make all your payments on time, you can argue with the carrier about the onlendings made to it on each purchase. As you know, traders receive a percentage on every purchase you make. Point out that by buying a lot, already guarantees the company a good financial transfer. With similar arguments, many people get discounts of up to 50% on annuity!
4. Record all expenses daily
To better control all expenses on the card, a gold tip is to record all expenses daily. This gives you complete control over what you have spent and what you can still spend. To facilitate this control, it is interesting to bet on the financial managers . GuiaBayment, for example, allows you to synchronize the app with your bank account data, automatically categorizing all current account and credit card launches.
5. Avoid accumulating installments
Splitting many purchases into even smaller installments makes the invoice large in the end. Try to parcel out only those purchases you could not afford to pay. If you have two things to buy, give priority to the one that is most essential and leave the other to the next.
5. Pay the full invoice amount
Paying the minimum bill amount is, without a doubt, one of the biggest risks posed by credit cards. It is well known that interest rates applied by card administrators are among the highest in the financial market, second only to financial ones. Choosing the minimum payment increases the debt level and often makes priceless invoices – the so-called snowball effect.
If you find that you cannot fully repay the invoice, the way out is to seek lower interest loan arrangements and replace the debt. On the GuideBayment website and in the application itself, you can compare and contract loans at various institutions.
Do you know how to track credit card spending? With our tips you will surely better organize your financial life.