The purchase of the gifts Christmas can bring more than one financial problem like the over-indebtedness due to the use of credit cards before the emotion of the date.
Hans Chui, a specialist in personal finance, offers some recommendations to avoid a negative impact on your credit history.
Prioritize your expenses: you must keep a very detailed control of your expenses. Thus, of your income, 70% should be used to cover four major items: food, housing, health and entertainment; and of this percentage, 25% can be used for Christmas shopping.
Respect the amount: If you allocate more than 30% of your income for purchases that generate debt, you will be over-indebted and you will be making a big mistake, since you will negatively impact your credit history.
Beware of interests: Credit cards are one of the means of payment that, for the most part, have the highest interest rates. Therefore, it is recommended to make purchases paying in a single installment or a maximum of two. This will also depend on the amount owed, the income you have, and the interest rate. Likewise, try to take advantage of those promotions that offer interest-free terms.
Avoid using more than two credit cards: The main reason for this advice is that it is very easy to lose control of them and you will end up paying a high financial cost. Remember that credits are not an extension of your income.
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
