How many cards do you have, and how many do you use? Do you know that you really don’t need so many cards for your daily transactions? Having two cards, one of debit and one of credit, is the most advisable to give them a good use, control them and avoid problems such as indebtedness.
At most, keep your cards to three. With them it will be enough to make the purchases that we need and it is an affordable amount of “plastics”, which allows us to keep control of the cards and keep our finances at bay, without fear of getting into debt.
When talking about credit cards, the reality is that one is more than enough. In fact, it is recommended to leave your credit card at home and use a debit card at the ATM and for day-to-day purchases. Why? Debit cards have a good part of the advantages of credit cards in terms of insurance for their daily use and an extra benefit: they do not lend money, so we cannot spend what we do not have.
Less Cards, Less Indebtedness
Having more than one card is an expense for the user, since few actually have a zero cost. But the real problem with credit cards is not what we pay for maintenance or issuance, but “having more only increases the possibility of spending more and, what is worse, using them poorly.
We run the risk of taking credit card as an extension of our income, and it is not. Credit cards are very useful and can be a great tool if they are used correctly and it is clear how they work.
A credit card allows you to buy on time: buy today and pay tomorrow or in installments with a monthly minimum. In return, the bank charges us a series of interests, if we delay payment or establish fixed monthly payments. This is good, but can also be really dangerous. The more cards we have, the more difficult it will be to keep track of the purchases made and the money spent.
How To Use Cards Well
Make sure the card is not in revolving mode: By default, most cards are activated under this form of monthly fixed payments, which is the most comfortable to spend more, but the one that makes the most interest. Before using the card for the first time, consider going for the non-revolving mode.
Use the credit card for large purchases: The biggest benefit of these cards is the insurance they include. If we want to hire a trip, it’s better to do it with the card because it includes your own travel insurance. The same applies to large purchases, as it adds guarantees to the products we purchase.
Seek low costs: Look for cards that have no issue or maintenance cost. The discounts in stores and other advantages? They are fine, but they are still formulas to make us use the card more than we want and need, precisely to take advantage of these offers.
With this in mind, you’ll prevent the abuse of your credit card.