At Christmas times people usually resort to any financing instrument to cover their expenses, however, if they are not used responsibly, they can become a very heavy economic slab.
An alternative to avoid debt during the holiday season or fall on the blacklist of banks for non-payment of credit taking credit card, is buying debt.
This purchase is intended for users of credit cards that can not pay off the entire debt taken. You have to take into account that the interest of credit cards, are not cheap, since it can reach 70% if you have made purchases.
We must also know that there are financial institutions that offer to buy the debt of the entity to which it owes at very low interest rates that can reach 13% and long term deposits, helping to pay each month the same quota. But is this mechanism recommended?
Tips for Avoiding Debt
To this figure Caceres is ideal for those who can not cancel the debts of credit card, because it will have a fixed fee, for a longer term and at a low rate. In that context, the specialist advises to choose the financial institution that offers you a lower interest rate and lower terms.
And, is it advisable to pay the minimum amount of the credit card? The specialist asserts that it is not recommendable, because the idea is to pay the entire debt taken with the credit card.
Then, if the cutoff date, for example, is the 20th of each month, then you can make use of the card from the 21st so you have 45 days to pay that debt and pay it all.
It should be remembered that the “minimum payment” includes the portion of the revolving debt (the sum of its consumptions per month divided by 36), the interest of the revolving debt, the amount of the month of purchases in installments and fees and expenses Of additional services, such as sending the statement and insurance.
Finally, is it convenient to withdraw cash from the credit card?
If money is needed, then you have to apply for a line parallel to the credit card or a loan because the rates are much lower compared to the cash withdrawal.