One of the main advantages of having a credit card, is to be able to make certain expenses without having the need to have the cash at that time. That is, buy and pay later. Ideally, return what was spent in a single step or a single installment; However, this is not always possible, especially when relatively large purchases are made.
Is it valid to defer our purchases by several installments? Of course it is, but not all the time. Here are some tips you can implement when using your card for this type of financing:
Understand the mechanics
The first thing to keep in mind is that, when paying in installments, you pay more. Why? Because they charge interest that adds to the payment of the month. Then, that purchase he made, actually comes out more expensive. That is why it is also important to choose your credit card cautiously, as some offer a higher interest rate than others and that makes some of them more convenient to differ in installments than others.
Find out about interest-free purchases
Some cards offer the option of “months without interest”, to buy in certain establishments. Many times, the network is quite large, so you could find the ideal alternative for the purchase you are looking for and defer it in the months you want, without paying interest.
Know when to defer and when not
Not all expenses deserve to be deferred in installments. In some cases, if you can’t afford it, you better not buy it. Such is the case of things that last only one day, such as an outing to eat or dance. Will you really pay three months in a row for her? So he is spending more than he should. Large purchases that can affect your budget by paying them in one are the ideal ones to differ, such as: plane tickets, electronics, appliances, among others of similar category.
Choose a responsible number
What does this mean? That calculates how much you can pay without going to the comfort zone, that is, without looking for the minimum possible, because this will not only make you pay more interest, but will end up spending the money you “have left over” on other things, instead of cancel as soon as possible the debt you already acquired.
If you have already used the quota system for a purchase, try not to do it again in the remainder of the month, this way it will not be overloaded with different accounts. Ideally, month by month, calculate how much you can spend to avoid ending up with many deferred expenses.
Use these five tips on the use of your plastic and protect your finances. Also, use William Boldwood to see if the card you have is ideal for your profile.