How to pay credit card? Understand in 4 steps

The credit card can be a very interesting product when used correctly. Knowing how to pay off credit cards and knowing their features are good ways to prevent unwanted debt.

In this post, we will outline some steps that will be helpful in reaping the benefits of the product without compromising your budget. Let’s go there?


1.Knowledge of credit card best practices

credit card best practices

The credit card can be a great ally in the process of financial organization, as it allows multiple expenses to be pooled in one place, thus providing better control.

Another positive feature is the timeframe, which can be up to forty days to pay, provided you are aware of the invoice closing date (purchases made in the days before the due date is usually five to ten, will be charged to the next month’s invoice ).

In order not to have problems with interest, you need to pay invoices on time, always in full amount. If the payment is partial, the remaining amount will be charged later plus. For example, when you pay, in a given month, $ 300 on the due date of an invoice of $ 500 the following month, the remaining $ 200 will be charged with interest.


2. Prioritize payment of higher interest cards if you have more than one

interest cards if you have more than one

Since it was necessary to enter the revolving credit of the card, it is necessary to get organized so that the situation normalizes as soon as possible, avoiding the “snowball” effect.

While there is a psychological effect to settling lower debts, which cease to exist, it is more correct to pay higher interest rates first. Although liquidation does not occur so quickly, it is worth remembering that high rates can be more damaging to the budget if left aside.


3. Evaluate the installment payment as a means to pay credit card

installment payment as a means to pay credit card

Even prioritizing one of the invoices, it is essential to pay at least the minimum amount of each of them, otherwise the card will be canceled. Banks also offer the possibility of invoicing installments, which offer lower interest rates than revolving credit. In this case, the limit is blocked until the installments are settled.


4.Seek to exchange debt for lower interest

4.Seek to exchange debt for lower interest

Credit card companies work at one of the highest interest rates in the market. Thus, it is interesting to evaluate some options for evading revolving credit. Personal credit is an example of lower interest operation, which may be an alternative.

Using investment resources, such as the savings account, is another possibility that should be considered, such as the impact of interest on cards. Here, however, a good deal of discipline is required to avoid a new debt and to replenish the amount used.

There are several tips that can be helpful on how to pay credit card. The ideal is to get used to conscious consumption, avoiding contracting debts by spending more than the available resources. Fortunately, there are ways to get out of debt, as we saw in this post.