Credit cards are double-edged weapons. It is true that they can get you out of trouble, but also, if you don’t know how to use them in moderation, they can bring you many problems.
For example, did you know that you spend more when you take your cards with you? Do not? These are the reasons!
It is easier to spend what is not yours
When carrying the credit cards we are tempted to use them because we feel that it is not our money that we spend. Be honest, it costs you more to spend cash!
This happens because we think that we can use the cash for “more important” things and it is not difficult for us to take out the card to pay the minimum expense.
The problem is that, in effect, it is about borrowed money and we end up spending more because when paying, you pay the fixed amount, the interests and the commissions of the bank that granted you the plastic money.
Cards postpone the stress of spending
When we make a large purchase and use our card, we focus on enjoying what we have purchased. In that sense we don’t feel the money we spend.
That’s because silver has been the result of a credit and will arrive in the statement ends meet. For what we are doing is to postpone the stress of payment and consequently we will notice that, finally, we have spent more in the following month, than expected.
There are no limits
Before having a card, when living with cash, you knew there was a cap. In other words, if you had 200 soles for an outing with friends, you knew you could only spend that amount. On the other hand, if you carry a card, the limit practically does not exist.
Since instead of spending the 200 soles you planned you can even go to the thousand soles limit of your card. You can be very happy to spend at the moment, but be realistic, this money will come out of your personal budget each month and without a doubt it will unbalance your personal finances .
We spend more with credit cards, because it takes away a certain level of awareness about money , it makes it intangible. Also because it is not a payment that comes out of our immediate cash. And because it creates the illusion that we have more money.
Do not be fooled by plastic money! Be responsible and, as far as possible, if you know you don’t have good control of your cards, you better leave them at home and use your cash.