Credit card in summer: how to use without creating debts

The convenience that hides the risk.

At the peak of summer, the credit card seems like the traveler's best friend. It is essential for renting cars abroad, holding reservations in hotels, and ensuring purchases in case of emergency. The flexibility of being able to pay 'later' creates a false sense of increased income, leading to paying for dinners and outings beyond what the monthly salary can support.

Danger arises when the August statement arrives in September, showing that the fun was funded with interest exceeding 15%.

Dangerous payment methods

One of the most destructive mistakes is to choose fractioned payment (a minimum percentage of the debt) instead of paying 100% at the end of the credit card cycle. By only paying the minimum monthly payment, the debt accumulates very high interest on the remaining balance, throwing the user into a spiral of debt where they end up paying for years for the value of a short trip.

In addition, credit withdrawals at ATMs involve substantial fees that absurdly increase the amount of money withdrawn.

Rules for vacations with credit card

Use credit to your advantage by following these steps:

• 100% Payment: Set the full payment mode at the end of the month to avoid paying interest.

• Roof limit: Temporarily reduce the credit limit to avoid dangerous impulsive spending.

• Avoid currency conversions: When traveling outside the Eurozone, study the exchange rates of your card before each purchase.

Return from vacation without the heavy burden of debt.

In conclusion, the credit card should be used as a secure means of payment and not as a source of financing. If you maintain rigor in your summer accounts, the month of September will be just a return to work and not headaches.

Have you spent too much on the card and the interest rates are suffocating you?

Contact us. With Savings in a Minute we help transfer your balance to a Consolidated Credit with much lower interest rates, clearing the debt of your card.