Clipping of news on Brazilian Culture, Law and Citizenship
06/13/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
transparent image
Exame.com
São Paulo - The credit card is touted as the great villain of finance, but you can use it without falling into traps. Just know well this product. It's not what happens, however, with most Brazilians: 47% do not know exactly how much they spend on the card and 55% have no idea of the interest charged.
These data are the result of a national study by the Credit Protection Service (SPC Brazil) and the National Confederation of Shopkeepers (CNDL). Even with the card interest rate reaching 15.12% per month, the highest level since 1995, the fear of failing to pay the installments and have to bear the interest does not inhibit consumers: 69% use the card all months and have, on average, four installments to pay off.
No one is saying you need to stop using the card, only that it is good to be alert not to go into debt beyond measure. When used wisely, the card can even help in financial planning, it allows you to pay all the expenses at once and to leave the money in yielding a financial investment during the month (see five safe investments that hit the savings).
Below, we've listed seven common mistakes when using the credit card, not to repeat:
1. Always count on the card limit as extra income
The credit card limit is the amount of money the bank makes available to you for a certain period, you can freely use and return to the bank later, without interest. Spending more than you can using the card limit is the big mistake pointed out by experts, but it is also the main advantage in the opinion of consumers: 40% justifying a credit card because it allows acquiring high-value goods, which are difficult to purchased in cash, according to the survey of the SPC and CNDL.
The limit of the credit card can be used (not extrapolated), since you do not spend what will not be able to pay later. To buy something you do not have money now and control plots then you must have discipline. If you are sure you can, all right to use the money borrowed by the bank and pay it later. But this should not be a habit, as advises the chief economist of the SPC Brazil, Marcela Kawauti.
"The limit can be used as a way to supplement the income only when necessary, if your refrigerator breaks, for example. Use it whenever you finish your salary is dangerous, because you buy beyond what you can afford, "explains the economist. If you burst the credit card limit, some banks also charge high interest rates, while others simply block their use.
2. Pay only the minimum amount of the invoice
When you make only the minimum payment of the invoice card of 15%, and pushes the rest of the debt forward, can pay high interest rates, explains the economist Ione Amorim, a researcher at the Brazilian Institute of Consumer Protection (Idec). In this case, the bank offers the so-called revolving credit, the great villain of the credit card.
If you have not paid the invoice amount and enter this type of credit, the bank charges the so-called "credit card interest." In May, the average rate of credit card interest charged by banks was 15.12% per month (441.76% per year). This rate, however, varies greatly from one bank to the other.
"It is better to delay payment once and pay in full invoice than to pay the minimum portion of the card and enter the revolving credit," advises Ione. If it is too necessary to divide the bill, the economist SPC Brazil suggests trying to negotiate better interest rates in the bank.
3. Delaying the payment of the invoice
To delay the payment of the invoice from one day, you pay a fine for delay of up to 2% per month, plus the so-called "default interest" of up to 1% per month, as explained Ione.
If in addition to delay payment, you do not pay the full card invoice, will also pay the high interest rates of revolving credit.
"It is never to pay the invoice late. But if really necessary, remember that the more time passes, the more interest you pay, "says Marcela, SPC Brazil.
4. Do not have an idea of all the fees charged for using the card
In addition to the interest rates and penalty in case of delay in payment of the bill for you to use the credit card some banks also charge an annual membership fee, you can negotiate to open the account. There is also a fee if you request to increase the credit limit, which is usually already be much higher than the monthly income of the people.
Other fees are to withdraw from the credit card or cash to pay bills. So always get cash and pay bills with the debit card, which charges no fees for this.
There is still a safe charged by some banks for cases of card fraud, often improper, as orients Leonardo Garcia, director of the Brazilian Institute of Policy and Consumer Rights (Brasilcon). "All purchases made after the consumer has lost the card are card administrator of responsibility. The bank can not charge to protect the customer in these cases, "said Garcia.
5. Having many credit cards
The more cards you have, the harder it is to control your debts. After all, every portion is a debt until it is paid off. "The risk you run of being in default with a card is already great, imagine with several" explains Marcela, SPC Brazil.
The economist also advises not to store credit cards, unless they offer good discounts on shopping, because the chances of you forgetting to pay them is too great. It is better to concentrate spending.
6. Do not keep the extract
At least once a week, look at your credit card statement by the phone application, on the site of the bank or the ATM is an easy way to manage their finances, as suggested by Marcela, SPC Brazil.
© Thinkstock / Ondine32 credit card: Avoid piecemeal invoices
Some cards and applications connected to the account have also automatically group your spending by category (see application to control your finances). This is good because you can see more clearly where you can save next month. Remember that you must include all parcels in the budget.
7. If you lose the automatic charges
In the opinion of Marcela, SPC Brazil, there is no problem in putting the payment of credit card debit, since you control your spending. "The most important is to hold spending before. Not the debit that will save you from getting defaulter, "says Marcela.
Already Ione, Idec, finds it prudent to put the card bill in debit. "The consumer is less attentive to financial control and, if no release mistake of spending, delay until it is corrected," he explains.
Source: MSN
To access the MSN site, click here.
Our news are taken in full of our partner sites. For this reason, we can not change their content even in cases of typographical errors.
This article was translated by an automatic translation system, and was therefore not reviewed by people.