The credit card It is one of the most important tools for managing our finances in the long term. It is useful if we do not have cash at the time we need to make an expense, but it can also be dangerous if we don’t use a budget.
Andres Mórtola, financial consultant, ensures that before committing to a credit card it is important to make a personal budget. “That way they can identify how much money they can have to pay card debts, and what items they can pay off with their card without having to go into debt,” explains the adviser.
What to do to get out of the Risk Center?
One of the options allowed by banks that handle credit cards is the cash advance. This is a loan modality that credits the card user with cash in their account, which eventually you will have to pay with the interest agreed with the bank.
Although card advances are a valid choice, interest rates are often higher than direct-to-bank consumer loans. For this reason, Mórtola recommends an unsecured or consumer loan for urgent cases.
However, those options are not always available to all users.
How to make advances from the credit card
bank of Guayaquil
The Bank of Guayaquil requires to be up to date with 6 months of credit card payment to request an advance.
From the App, the user must go to the Card option and choose the Advance button. There you enter the desired amount, which must be at least $10, and the months to be deferred, which must be between 3 and 36. Once selected, the monthly installments with interest are reviewed and the advance is confirmed.
Pichincha Bank
To make an advance in this bank you must have, as a prerequisite, credit card quota and all payments up to date. The bank allows you to make advances of up to $2,000 and pay it in full the following month or in installments of up to 60 months. To pay in installments, the loan must be at least $300.
The process is carried out from the intelligent ATM, where the card information is entered and the desired amount is withdrawn. It can also be done from the Banco Pichincha website or its mobile application.
Bank of Pacific
This bank allows you to make advances from $300 and defer payments for up to 36 months without interest. However, all payments on the card must be current and there must be no past due payments in the 6 months prior to the request for the advance.
The process can be carried out from the Banco del Pacífico website or from ATMs, with the credit card information.
How to meet advance payments
If we decide to make the credit card advance for an emergency situation, the ideal is to start paying as soon as you have the capital. Andres Mórtola, the financial advisor, recommends using a formula to allocate the money to pay off the debt:
Income – savings – basic expenses – debts = available money.
saving, indicates Mórtola, it must represent 10% of the income. Basic expenses (education, food, health insurance, transportation) and non-basic debts or expenses (entertainment, movies, restaurants, games) are subtracted from that.
“The value of the money available is the amount that is used to pay off the debt, but with this formula you prevent your debt from continuing to grow,” explains the financial coach, who also recommends reviewing the method avalanche or snowball to get rid of debts. (YO)
Source: Eluniverso
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