We all know that credit card can be a hand in the wheel in our day to day life. However, Brazil is considered the country with the highest debt-to-credit ratio in the world. This shows a reality that we need to swallow: we do not know how to use the card in the right way and we end up with debts with banks. It is not right to use the card and make a personal loan to pay it, right? And do not even mess with some CDC option.
Many people choose to have more than one card, coming up to 5 or 6. Having more than one credit card can be the beginning of a life of debt over debt. In this case, the financial lack of control is always more plausible. After all, the average interest rate of credit companies revolves around the unjustifiable 450% a year.
If you have more than one credit card and you know you need to take the reins so you do not get high-interest rates, stay tuned to our tips for recovering your financial health and organizing your budget.
Make a list of your fixed expenses and monthly income
List everything you need to pay monthly, absolutely. It is worth putting in your worksheet: cell phone, telephone, internet, medical insurance, rent, water and other fixed bills. Add up everything and see how much your gross spend per month. After that, list your entire income in another field. Fixed salary, rents receivable, services rendered, etc.
Compare expense vs. revenue
Make a comparison between what you earn and what you spend. Striking a balance in this account is the first step to regaining your financial health.
Review the limits
The amount resulting from the subtraction of the amount earned minus the amount spent should be greater than the limits of your credit cards together. For example, if your salary is R $ 2,000.00 and your fixed expenses are R $ 1,000.00, the limit of your credit cards should be around R $ 800.00 together. Learn more about the credit card limit in our post.
Face reality and separate budget by categories. So you can see how much you spend with leisure, entertainment, food outside the home, gifts, etc. For example, if you spend $ 850 per month on leisure the following month, try to reduce 20% of this spending by making programs at home with friends and finding cheaper alternatives. The same can be done with other categories.
Stop and think
Have you been tempted to buy something on credit that costs more than $ 150? Stop for a minute and think, go home. If the next day if you still feel the need to buy it, analyze your possibilities and go ahead. Waiting for a day to close a purchase is an efficient way to avoid impulse purchases. Also, see if it really pays to buy on your credit card.
Renegotiate your debts
If you have already been swallowed up by credit card interest, put the amount of this current debt at the tip of the pencil. Make a proposal to remove it and contact your operator to negotiate. If this is not possible, calculate how much you need to pay per month to pay off this debt and how much time your budget will be committed to doing so. In this period, do not buy anything that extrapolate the budget and avoid to the maximum buying things in many installments. To start reorganizing, you need to eliminate one financial problem at a time.