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Black Friday: 5 tips to use your credit card without getting into debt

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Black Friday or ‘black Friday’ is celebrated this Friday, November 25 in all physical and online stores. In a context of runaway inflation, Black Friday discounts will mark the start of Christmas shopping and, also, from the headaches of many consumers who get carried away by the euphoria of consumption.

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Inflation and the rise in interest rates have deteriorated the economy of households worldwide, for which it is considered that people can easily get into debt. It is known that consumers spend more than 40% of their income to pay debts.

“Given this economic scenario, it is essential that before making purchases, consumers analyze their real ability to pay, since it is common for users of the Credit cards they forget that these purchases have interests that they will have to face. If several payments accumulate, you can fall into a long-term debt spiral”, explains Pedro Rafael Solórzano Campos, professor of the Master’s Degree in Financial Management and Management at VIU (International University of Valencia).

The expert provides some keys to take into account so that purchases do not complicate the future financial situation:

1.- Establish priorities

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Making a list that serves as a guide for acquisitions is essential in order to avoid impulse purchases, as well as take a look at the price of the same product in different establishments. The most ideal thing is that the priorities appear written down according to your preference and the personal needs that motivate your purchase.

2.- Do not use the card as an extension of money

One of the most common problems with Credit cards is to use it as if it were cash, without realizing that it is a line of credit that will have to be paid for later. For this reason, although it allows the payment of a good or service to be delayed, it does not mean that this has to be done always or continuously.

3.- Avoid long-term financing

One of the most widespread practices in the world of purchases and, specifically, when they are associated with card payments, is to buy beyond one’s real financial possibilities. Something that is achieved by financing purchases.

Although it can be a great help to make a punctual payment, credit cards should not be used on a day-to-day basis, because if this practice is abused, the consumer will link debts, facilitating long-term debt.

4.- Take into account the interests of the card

Linked to the previous advice, the idea of ​​card interest should be kept in mind when financing any purchase. That’s why, it is recommended to be cautious, examine the alternatives and avoid getting into debt beyond personal possibilities in days like this.

However, if there is no other alternative, it is advisable to include this expense in the budget for the coming months so that the money can be returned without problems.

5.- Set a usage limit

A good measure to avoid exceeding the pre-established budget is to set a usage limit on the card. In this way, when the desire to acquire something becomes irresistible and exceeds the awareness of not having enough money to pay for it, the temptation to resort to this way of getting quick money in a simple way is avoided.

The most appropriate thing will be to take into account, before the days of the black fridaythe dangers of not making responsible use of the credit card.

Source: Larepublica

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