Credit Card – Is It Worth It?
According to BF Bank data, in the first quarter of 2016, the Portuguese increased credit card consumption by more than 8% compared to 2015. We are talking about an absolute value of 7.28 billion euros. But is this value even being used by households for the acquisition of goods and services? What is the sector in Portugal that does not complain that it is in crisis? So where are the families spending the € 7.28bn spent on the cards?
Type of Credit Card Use
- How many of us use our credit card to pay for another card?
- And do we go back to using the amount available on the card, which we just paid the installment, to pay for the provision of another loan?
- Or, do you cash advance to get some liquidity available in your account to finance the day-to-day running expenses?
Do these situations seem familiar to you? We are using the cards, but are we making good use?
Basically the only thing you are doing is increasing your debt amount, because in most cases when we pay the minimum amount, we practically do not amortize capital and sometimes not enough to settle all the costs of the period associated with the card. In these cases the amount due increases because the card finances the provision itself. Until the day reaches the ceiling of the available ceiling and at that time begins to have values exceeded.
Some of the Costs Associated with Credit Cards
When you receive your credit card statement, do you usually check the period costs associated with your card?
- If you have exceeded your credit card limit – it will cost around € 20.00 + IS;
- If you have not been able to pay the installment in the indicated period – recovery costs of amounts owed, it is worth around 12,00 € + IS;
- Used cash advance – the cost will be around 3% of the value + IS + a fixed cost (this amount varies a lot from institution to institution, you have to read your card information sheet);
Recognize any of these costs? As a rule, these costs all together can represent a monthly value of more than € 60 per card. In practice you are paying but do not take great advantage of the use of the card. Our economy is still stagnant, but consumption through the cards continues to increase month after month Have you stopped to think when millions of euros are spent on these small fees? And have you noticed what you would have done if you had saved all this money?
Fell In Trap – What To Do?
If you fall into this trap credit cards know that you need to act quickly to avoid paying all these costs, interest and commissions. Best of all, there is a solution to all the financial problems. The important thing is to take the first step, which consists of a diagnosis for the consolidation of credits or the possibility of renegotiating all the credits. The results are extraordinary!