up the Black Friday This Friday, November 25th, and with it, a flurry of purchases in both physical stores and online. Acquisitions that have been expected for months are made…but also others that are no longer so necessary and that end up adding to the family debt. For this reason, experts recommend that you follow a series of guidelines to avoid falling into a debt spiral.
During this day, it is common to use a credit card to make purchases, which means more debt. This also occurs in the midst of those deferred payments that allow the debt to be deferred for several months. In fact, the bank also adds to this day’s offers promotions for cards or loans.
Given this economic scenario, it is essential before making purchases that consumers analyze their real ability to pay, as it is common for credit card users to forget that these purchases have interest that they have to contend with. If multiple payments accrue under this scheme, you may fall in debt spiral In the long term, ”explains Pedro Rafael Solorzano Campos, Professor of University Master’s Degree in Finance and Management at VIU (Valencia International University).
For this reason, the above master class experts have prepared a series of recommendations to follow if you intend to use your credit card for purchases.
Recommendations
First, set priorities. “Preparing a list that serves as a guide to purchases is essential in order to avoid compulsive buying, as well as to have a look at the price of the same product in different establishments. The best thing is to have the priorities appear written according to your personal preferences and needs that motivate you to buy,” they point out.
Secondly, we must bear in mind that a credit card is just a credit, a loan that must be repaid. “One of the most problematic credit cards is to use it as if it were money, without realizing that it is a line of credit for which you have to pay later,” says the guide, and adds: “For this reason, though it permits delaying payment of a good or service, does not mean that this must always be done or continuously “.
Third, the recommendation to avoid long-term financing. “One of the most widespread practices in the world of purchases, and specifically when it relates to card payments, is buying beyond real financial capabilities. Something that is achieved by financing purchases. Although it can be very useful for paying on time, credit cards should not be used on a daily basis, because if this practice is abused, the consumer will be tied up in debt, facilitating long-term indebtedness.” Experts from the International University of Valencia .
Fourth, always review the interest charged for using the credit card. Paying on credit entails a cost, which is the interest which must be returned to the bank at the time or on the agreed terms. For this reason, it is advisable to be careful, to examine alternatives and to avoid getting into debt beyond personal possibilities on such days. However, in the absence of another alternative, it is appropriate to put these expenses in the budget for the coming months so that the money can be returned without problems,” according to the document.
Fifth and finally, the experts from this university recommend putting an end to the use of the card. In this way, when the desire to acquire something becomes irresistible and transcends the awareness of not having enough money to pay for it, Temptation is avoided To go this way to make money quickly in a simple way, ”the guide indicates. Thus, you will not be able to make more purchases because the limit has already been reached.
