Financial education: How to make good use of credit cards for Christmas shopping? – Economic Journal

The holiday season is approaching with joy, good wishes and love, but also with many expenses. Therefore, to cover them, many people increase their usage credit card get financing alternatives that could change your usual payment debts if there is no adequate and organized control.

“One of the main benefits of using credit card is that they allow you to always have something extra available in your pocket flexibility of payment methods short or long term and increasing miles for discounted travel. However, it is important that users have the right financial education to avoid accounting dangers,” says Enzo Giampier, financial specialist.

In this sense, Giampier offers 4 tips on how to make good use of your credit card for the Christmas campaign.

  1. Prepare a budget: Especially before the end of the annual holidays, it is essential to identify the net income and fixed expenses that will be incurred. It is important to ask yourself if you will be able to count on additional earnings, such as paying bonuses or tips, so that you can safely generate expenses. Creating an organized shopping list and checking prices will help you choose the best buy.
  2. Schedule payments: To avoid suddenly paying high credit card interest, it is recommended to use the financial technique of “roulette” in months of greater economic consumption, which involves postponing the debt to the following month so that the buyer has prudent payment and organizational time. .
  3. Do not stop using the card: If you have an active card, it is recommended to make any type of purchases with it, even if they are for minimum amounts. This is to continue to create monthly economic fluidity and apply to large and exclusive discounts offered in various market sectors. For example, offers and discounts on products and coupons
  4. Choose your financing wisely: In absolutely necessary cases, it is advisable to apply for financing. If you don’t have enough cash, you can apply for an emergency loan because it has a lower interest rate than a credit card payment. Before you apply for it, analyze what monthly installments need to be paid and whether they can be covered within your personal budget so that there are no financial complications in the future.

“A credit card is a very important financial tool that can save many emergencies, especially if it is used correctly as a means of payment and not a debt. For this reason, it is always important to seek advice before any use you wish to provide,” adds Giampier.

Considering that the responsible use of credit is positive because it allows you to gain financial leverage, we suggest obtaining credits that are within your payment possibilities. Likewise, if consumers have positive behavior and build a good credit history, it will help them have a good reputation that will open the door to other financing options. Therefore, it is always advisable to go to a financial advisor to have a better orientation.

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