How to avoid a spiral of debt?

Paying off credit card debt is more difficult to repay than monthly installments of other major loans, such as personal loans or mortgages. According to an analysis by the Observatory of Family Financing of the Negotiating Agency, for 35.6% of the users of credit cards, paying off their debts with these cards is the greatest monthly financial effort. Figures lower than in 2013, where 41.2% of users classified their debts with credit cards as the most complicated to settle.

Habits to avoid overdependence

Credit cards are a very useful tool that allows us to access money quickly at any time and is perfect for larger expenses than expected, however, its excessive use can lead to a spiral of debt from which it will be very difficult to leave. good debt consolidation programs can help you. Here are 10 habits to avoid over-indebting us when we use our credit cards:

  1. Establish a budget: know what we want to buy with our credit cards and how much it will cost, so we can know and analyze the expenses before making them
  2. Do not buy impulsively: to avoid buying whims that we can not afford, it is better not to carry credit cards and carry them only when we have a specific purchase that we want to make
  3. Find alternatives to credit: analyze if it is an expense that must be immediate or if we can wait and save to avoid having to use a credit
  4. Identify the best means of payment: if we make the total payment the following month, they will not charge us commissions; instead of paying the minimum will take a long time to repay our debt completely and pay many interests. If paying the next month is not the most convenient for us, we must find a balance between an affordable monthly payment with the shortest possible term
  5. Not having several credit cards: a credit card is enough, when we have several we can risk using a bit of each and end up with a large debt
  6. Take advantage of the discounts offered by the cards: the vast majority of credit cards grant discounts or refunds on our purchases, this can help us save a small amount per month
  7. Know the conditions of our credit cards: we must read the contract in detail to know the mode of payment that is automatically assigned (and change it if not the one that suits us), know what interest or commissions will charge us and other conditions what it takes to have a credit card
  8. Keep track of the expenses incurred: keep all the receipts together and have a clear idea of the expenses we have made with our cards, so we will avoid spending more and we will know when we have reached our maximum limit
  9. Avoid unnecessary commissions: there are many free credit cards that we can hire to avoid having to pay the issuance or renewal fees. It is important to know that having cash or transfer to our account always includes a commission, for these operations, it is better to use a debit card
  10. Be aware of our creditworthiness: nobody better than us knows our monthly income and expenses. Knowing how much money we can use is crucial to making good use of our credit cards