One of the means of payment for part of the population is a credit card. Using a card to pay for purchases, whether current or deferred, probably became more common in December during the Christmas and New Year holidays, and now we have to start paying.

In Ecuador, 15% of adults have a credit card. In addition, the country ranks fourth with the most cardholders in Latin America, according to Debtor Defense attorney César Coronel, citing World Bank data.

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Payment for purchases made in December will in some cases begin in January, but in others from March or April, due to grace months given by institutions. Using these alternatives, especially loans, is not bad. However, there are several aspects to consider so that using a credit card does not go against you or even lead to non-payment, says Coronel.

In this context, he points out that it is important to remember that deferred consumption should only be used for durable goods or services, such as, among others, accessories for a vehicle, studies, household appliances.

And, on the contrary, he advises not to postpone products for immediate consumption, such as shopping at the supermarket, dinner with friends, going to the cinema, but that these expenses can be paid in cash or in current payment, i.e. they are paid in full when the credit card is terminated.

The following was added to these recommendations:

On the other hand, Coronel says that if you already have the problem of over-indebtedness, in addition to not taking on additional debt, it is advisable to seek professional help that knows the subject in order to find the best solution. Likewise, he suggests working on transparent and honest financial planning, in which children are included, in order to get to know the economic reality of the family.

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It is emphasized that it is necessary to “clean up” current, real incomes, as well as monthly current expenses, such as water, electricity, internet, cable television, among others, and to add to them those for education, food and other items such as “expenses of the famous ants”. And previous debts that already have interest, due dates, etc. “Clear expenses not only so we know what we’re spending on, but also so we can make decisions about where to make adjustments.”

As an example, he states that there are many people who spend significant amounts of money on payment platforms. streaming or in home food shopping services that “could be customized by making decisions at home about how many days of the week to actually order delivery or on how many platforms streaming really” are used.