Your credit card doesn’t have to be your enemy, learn how to deal with it

“Just this delivery” or “I’m going to pamper myself a little bit because I deserve it.” Anyone who has never played with their credit card limit doesn’t know what it’s like to be nervous about paying (or worse, not being able to pay) the bill at the end of the month. And, of course, there are specific times to invest in a course or buy that item you’ve been wanting so much. However, there are necessary precautions to avoid the mistake of thinking that, by installments, everything can be solved. “Financial organization is half technical, half emotion. Understanding about inflation, interest rate policy and Selic rate is important. But there is also enormous relevance in understanding our relationship with money when we are anxious or insecure”, he points out. Gaby ChavesMaster in World Political Economy and founder of No Front Financial Education.

First of all, points out the economist, it is necessary to understand that consumerism is based on the impulse and the creation of a desire based on specific emotions, whether in search of belonging or compensation in times when emotions are more fluctuating. “Furthermore, Brazilians always fall for the offer, buying things they don’t even need or want, just because they are cheap.” To use the shopping tool intelligently and responsibly, follow the expert’s tips.

1. Don’t be seduced

A danger that may seem obvious, but many fall for: considering the credit card limit as part of the income. “It is always important to remember that spending 1,000 reais in a month implies not having that money the following month”, he warns.

2. Look at the invoice, yes

Who never felt butterflies in their stomach when they needed to check the invoice summary in the middle of the month? “Spending without analyzing our priorities is a huge mistake. Even worse is failing to follow up on the invoice regularly. At the moment, most credit cards have an application where you can monitor purchases in real time“, it says. Gaby indicates taking half an hour a week to look at the invoice summary. “If you weighed your hand in one week, it’s possible to make up for it in the next. Now, if you leave to do this reading at the end of the month, it may be too late for your expenses to reach a sustainable and safe level”, explains the economist.

3. Set your spending cap

To set a spending cap, always consider your income. “Usually those who spend amounts greater than their own salary end up opting for installment payments. The interest-free installment exists in Brazil, but delaying payments can generate frightening fees that prevent you from paying off that debt for a long time”, he points out. In addition, credit card interest rates are among the highest in the market. “On the Central Bank website, it is possible to see a ranking with the interest rates practiced by each flag. It is public information that can help a lot ”, he indicates. On your invoice, be sure to look at the CET (Total Effective Cost): if you delay payment, this fee will be charged.

4. Pay attention to installments

If you have an income of up to five minimum wages, try to use your credit card to buy things that would not be possible in cash, such as plane tickets, furniture or important appliances for your home. “In this case, the card is an excellent instrument because you can purchase goods with an interest-free installment that fits in your pocket,” he says. However, keep in mind: taking on a share means compromising your future income🇧🇷 “When we have debt, it is necessary to reprogram our mind in relation to our savings. If I earn two thousand and have a thousand in debt, I cannot consider that I have two thousand free every month. If not, we enter that debt cycle in which we pay the bills, run out of money, take out new loans and suffer from abusive interest rates”, he reiterates.

“The interest-free installment exists in Brazil, but delaying payments can generate scary rates that prevent you from paying off that debt for a long time”

5. Standalone, online

Unlike those who receive a fixed salary every month, self-employed people have fluctuations in income. “It is increasingly common to find MEI employees, street vendors, housekeepers and other informal professions that do not offer any monetary predictability. In these cases, long-term installments should be evaluated with extreme caution”, warns. “We don’t know the state Brazil will be in in December, so how can we pay in 12 installments? When times are tight, many pay the minimum bill, which is like sweeping sand off the beach. Interest goes up and what you’re paying just goes away without decreasing the debt.”

6. Beware of spiked spending

“Those with lower incomes need to be careful not to spend small purchases on their credit card. It’s easy to lose control that way. If you are doing this, stop everything and do a manual job of looking at the invoice and classifying how many of these expenses are essential”, he advises. Analyze the amount of purchases directed towards essential areas, such as shopping at the supermarket or pharmacy, and the percentage of impulsive spending🇧🇷 “Application runs or a juice on the corner seem like little at the beginning of the month, but all of this is weighing”, exemplifies the specialist.

7. Debit or credit?

Gaby informs that several operators offer the function of transforming the credit card into debit for those who want to monitor and control their expenses on a day-to-day basis, without having a scare at the end of the month: “This happens because many places continue to accept only credit as a form of payment. of payment. Pix has improved this scenario, but it has many limitations. It is not because someone does not have a card that they will stop consuming”.

Credit cards don’t have to be your enemy.

“Credit can be a great ally. It was through the booklets that many of us were able to furnish our homes in the past. Credit has already allowed many people to make big dreams come true, so we can’t demonize it. The government and companies are indebted, because debt is part of capitalism. The big point is for us to stop facing the debt with guilt, and to see it with responsibility”, he declares. According to the economist, the card brings many advantages that, when used intelligently and consciously, can guarantee great achievements.

See some of them:

Interest-free installment:

It may not seem like it, but Brazil is one of the few countries that offer this payment method.

Miles programs:

From spending on the credit card, the customer accumulates miles that can be exchanged for airline tickets.

Cashback:

Many agencies refund a portion of their spending — or a portion of the membership fee — for clients to use as they see fit.

Rewards:

Spending certain amounts, you get discounts and gifts in partner companies of your bank.

Ease of loans:

By paying the invoice on time, it is possible to increase your score on platforms such as Serasa. This will make institutions offer you better loan conditions, as the credit card also influences your financial history.

“These and other advantages may be better for those who spend all possible expenses on the card. And that’s okay, you can organize yourself like this. But I don’t think it’s worth using the credit just to have these benefits, as we can suffer from unforeseen income, such as delays in salary payment and even layoffs”, he warns.

Controlling spending is a self-care gesture

Gaby reinforces that money should be a means and not an end: “We are going to look at our resources as a way to guarantee a better quality of life. Many people say that they are going to live today as if there is no tomorrow, that life is too short. But the future always comes, whether you prepare for it or not.” For the economist, controlling expenses is nothing more than a self-care gesture: “Taking care of money is to guarantee our safety and emotional stability. Running out of money and in debt is an absurd trigger for anxiety. We need to have responsibility and knowledge about what we are doing. Therefore, the card can be a great friend but also a huge enemy”, she concludes.