How to use a credit card and maintain financial health?

Credit cards can be a great ally in reducing monthly expenses, but if not used wisely, they can turn into a nightmare and end up damaging your financial health. Learn everything you need to know about using your credit card and maintaining your financial health!

Why credit cards should be used wisely

First of all, it's important to have emotional control, because how many purchases do we make just to satisfy a superfluous desire, improve a sad day, or fill a void that definitely won't be improved by that purchase?

Unfortunately, it's a fact. For this reason, the more conscious your purchases are, the less likely your credit card use will lead to debt.

Understanding your cost of living is also a good way to calm your nerves and rethink your purchases. What's your monthly salary? How much do you earn per week? How much is your hourly wage?

Reflecting on all this, it's much easier to value your money and think more carefully about that purchase.

IThis does not mean that the credit card should be seen as a villain and should never be touched. On the contrary, it was created to make shopping easier. But prevention is better than cure.

Main mistakes when using a credit card

Conscious shopping helps you avoid making mistakes after the credit card bill arrives. A simple tip is to avoid making impulse purchases, relying on that "I'll figure it out later" feeling.

The month goes by very quickly and we can't always find a way.

So, here are some very common mistakes that make your relationship with your credit card extremely dramatic, tiring, and stressful:

Always pay the minimum amount on your bill

It seems like a good solution when the card bill is R$$ 700.00 and the minimum amount is R$$ 49.90. But what about next month?

Interest is often high and accumulates month after month. This can snowball into an increasingly difficult-to-control situation.

Only pay the minimum amount in extremely necessary situations, trying to pay off the debt month by month.

Spending more than you can afford

Many internet jokes talk exactly about this: “how did the bills of R$7.00, R$ 10.00 and R$ 15.00 turn into a bill of R$ 600.00?”.

Yes, you don't need to be very good at math to understand that even if you spend little, if that expense is recurring, it can suddenly turn into a huge bill!

Ideally, you should keep expense tracking spreadsheets, or even use apps, to quickly see what you earn and what you spend. The more visible it is, the better you'll understand your finances.

Failure to pay by the due date

After the bill's due date, interest is charged, which varies depending on the card company. Schedule your card's due date for a date that matches your bill payment date.

If necessary, set reminders and notifications on your phone so you don't miss this important date.

The more preventive measures are taken, the healthier the card will be to use.

5 tips for using your credit card and maintaining your financial health

Now that you're thinking about using a credit card and still maintaining your financial health, follow these five essential tips to stay organized and make your purchases without feeling guilty.

Have only one card

Often, because of a card's low limit, we delude ourselves into believing we need more than one option. For specific, high-value, non-recurring purchases, it can actually help.

When using a credit card for smaller, recurring purchases, one is sufficient and prevents unnecessary purchases. It's also easier to control and avoid falling into a trap.

Know and negotiate rates

Before choosing the ideal credit card for you, consider analyzing the fees. Today, there are several digital card options with no annual fees, offering convenience, and all online solutions.

Often, by not paying attention to the fine print when choosing a card company, we end up losing money without even knowing it.

Don't become dependent on credit cards

Don't just use credit cards to make your purchases. Use them as an alternative option and don't rely solely on them.

Report undue charges

Especially when shopping online, through websites, or even through malicious individuals, you may experience unauthorized charges on your credit card. This is one reason to always keep an eye on your bills: don't miss anything and pay only what you spent.

Most card companies, including digital banks, have the option to dispute charges in which they analyze those charges considered undue. Keep an eye out!

Keep your credit limit lower than the bank allows.

A good tip for cheating yourself is to always keep your credit limit low. That way, even if you want to, you won't be able to spend.

Of course, the ideal is to have control over your own accounts and identify what is a necessity and what is a momentary desire. However, this trick can be very useful.