But worse than ignorance are the consequences that can come from this statement. I have said a few times that credit is not bad and even credit card can be a very smart way to manage our finances. However, the potential problem is that the credit card is a personal credit that we bring with us and it is already approved, and it is up to us to decide when we turn to it.
We have to realize what a loan is for
If our criterion is to resort to the card when we are in difficulties, then we are distorting the concept of recourse to a loan. If someone is in financial difficulties should not incur one more expense. It should be to reduce expenses.
By using the use of credit card in the mode that includes interest, then what we are doing is a purchase of money and this is more expensive. Generally, the biggest headaches with the payment of benefits are associated with the monthly payments of the credit cards. We pay benefits with such high interest rates that, with each payment, we reduce very little to the outstanding principal.
Notice the weight of interest in your installment
Fortunately, nowadays the extracts from the cards already appear in more detail regarding everything that makes up a provision, but even we only focus on the value of the provision without accounting for life if we manage to support this provision over several months or years.
The decision to take out a debt can not be the result of an impulse, even if the banks communicate that everything is easy! Being easy is not always the best way.
What to do if it was already caught in the web?
If you have been caught in the web of credit card and if you want to get rid of credit, there are some solutions at your disposal. You can use solutions for consolidated credit, renegotiation of credits or even make a housing loan with capital increase to settle your short-term liabilities.
However, always consider that these solutions should be used responsibly because, when misused, will imply a payment of interest that is much higher than agreed.