The bank gave you a credit card and the first thing you do is go out to spend. You take advantage of giving yourself some tastes and you reach the limit. It is there when you encounter the dilemma. Now how do I pay the debt on the credit card ? Pay attention to the advice in this article.
How does a credit card work?
A credit card is an instrument granted by the bank with a specific money available, previously studied by the entity, which you can use and then you must pay with interest within a certain period.
Most Mexicans use the credit card as a means of payment for common expenses. For example: to pay another card or as an extension of the salary. This behavior can generate an accumulation of debts, which later become a headache.
Why is this way of proceeding with the credit card negative? Because under no circumstances the credit card is an additional income. So, if you use it excessively, you will end up with many debts and serious financial problems .
What happens if you go over your credit limit?
It is very easy that sometimes we go hand in hand when we use the credit card and exceed the limit set by the bank. The consequences of a scenario like this will depend on the policies of each financial entity.
Generally, in case the client exceeds the credit limit, the bank could suspend the instrument, block the expenses of the last purchases, agree on an extension or agree on a depreciation of the exceeded amount.
Therefore, it is important that you read the conditions of use of the financial product very well, and at least be aware of the implications.
Either way, if you exceeded the limit and do not know what to do to pay your credit card , the important thing is that you act fast. Check with the bank about the possibility of extending the limit or paying off the excess at the end of the month.
What happens if you don’t pay your credit card on time?
Didn’t you manage to cover the credit card debt on time? You should know that paying for CT with delays has negative consequences for you.
On the one hand, you must assume the collection of interest for late payment. Banks usually give customers a small grace period to pay the monthly fee. However, with what they do not make concessions, it is with interest rates .
On the other hand, there is the fact that the delays with the payments of your credit cards add bad reputation to your credit history . This aspect would be super negative, for example, in case you want or need to apply for a new loan.
When a cardholder is frequently behind in credit card payments, he is immediately reported to the Credit Bureau as a delinquent customer. When this happens, banks refuse to grant you new financial instruments.
Tips to avoid credit card debt
Avoid financing your purchases for more than 30 days with the credit card. If you still want to do it, first find out the Annual Equivalent Rate (APR) that they offer you and compare it with the other options available (personal credit and other types of loans).
What is the APR for? This index will help you to know the true cost of the credit or loan, compare the different financial products and choose the most convenient for you.
If you are already in debt, find out how much is the interest rate you are paying and look for a loan where you pay less interest. For example, using the Bankers family service to pay off credit card debt is a good option.
The idea of having a credit card is not bad, even the fact of using it to pay your expenses does not have to represent something negative, on the contrary.
This valuable financial instrument , not only serves to finance your purchases, it is also an excellent means to show banks that you are a fulfilled customer and that it is worth granting you other loans.
The important thing with these instruments is that you know in depth the conditions of use, interest rates and other costs. With these aspects clear, CT scans should not represent a headache.
You do not have to stop using your credit card if you use it wisely and make the best decisions when making your consumption.
In case you have a pending debt and do not have a defined plan to pay your credit card, you can consider the Bankers family service. We offer you the option to defer the balance of your TC so you can settle it as it suits you.
Bankers family absorbs your credit card debts and allows you to maintain a good credit history by not being late with payments.
In addition, with Bankers family you will have the best-personalized attention from professionals who will clear your doubts and help you choose a plan adapted to your financial profile. This way you can finance yourself in the most comfortable and efficient way.