Credit card, use or not use? There are those who love with passion and those who do not want to see or painted gold. It is possible to live with balance, just knowing how to control card spending. So you will not live a nightmare.
How Credit Card Works
A credit card is a means of payment with a predefined credit limit that allows consumers to buy goods and / or services from card-accepting establishments. The consumer only pays for these amounts on the day the card bill expires.
How Card Revolving Credit Works
It is a type of credit offered to the consumer when he does not make the full payment of the card bill to maturity. The best known example is when we pay the minimum invoice amount. But the revolving happens when you pay any amount less than the full amount.
The difference between the total amount and what was actually paid to maturity becomes a loan. And because of that, you get interest on the rest you have to pay.
Thus, the company that issued the card assesses your financial condition and ability to pay the offered limit.
In addition, revolving credit can only be used for one month and if you are unable to pay the full amount of the next invoice, the company may offer another line of credit. In this case, it can be split and needs to have more advantageous conditions than revolving credit.
How to control the card
To have control of the card one of the main attitudes is to have discipline. Thinking that spending over your budget will give you a big headache.
Getting dependent on credit cards is dangerous and can lead to debt, financial problems and bad credit score.
So if you find yourself using your card more and more each month without paying the full bill amount, it’s time to review your financial habits. Pay and cancel your cards if necessary to keep you out of debt.