Applying for credit cards is a very easy today. In a matter of minutes you can have your card approved and in your hands ready for use. At that time a credit card seems the best, but it will not seem the same when monthly payments come from what you bought in installments and is that the interest rate of credit cards are not low .
Just as using arbitrary credit cards is not healthy for your personal finances, neither is paying the minimum amount of them. If you are one of the people who pay the minimum amount of your cards, pay attention to the following information and leave bad habits behind.
It is true that opting for the minimum payment of a credit card balances the finances of the month in which this modality is chosen, but it is more expensive in the long run and it is that the minimum payment of the cards represents approximately 5% of the total debt plus expenses that have nothing to do with the amount financed (including commissions and interest).
If you only pay the minimum amount of a simple debt that you could easily pay in one year, it could be extended in 5, 10 or more years, if you always opt for this modality. In the long run the interest paid will be many times higher than the initial figure and you will feel that the initial debt is not reduced.
Under the new SBS regulations, even in each account statement you can know how long you would pay your total debt if you only choose to pay the minimum amount. Dare to make calculations and note the important and high difference between your initial debt and everything you will have paid at the end.
The finance specialists, advise those who have debts for the use of credit cards , only opt for the minimum amount when within the month they have had unexpected and necessary expenses.
It is also preferable not to pay the minimum amount that comes in the monthly receipt, but the maximum we can pay according to our economic Good Finance. In other words, if the minimum amount is S / 100.00 and the monthly fee is S / 500, but we have S / 300.00, it is always better to pay S / 300.00 than just the minimum amount requested by the bank.
It is better to choose to request a personal loan to use the credit card to finance any acquisition and that the interests of a personal credit are usually lower, in addition it can be requested with the monthly payment of fixed fees.