4 tips to use a credit card and pay your debts in the pandemic

Plan the use of your credit card and pay your debts during the quarantine it will give you advantages to face unforeseen expenses. The National Commission of Banks and Securities (CNBV) has communicated about the aid measures that financial institutions must use to support clients who have had a drop in their income due to the coronavirus pandemic.

Therefore, the announced actions imply the suspension of loan payments for a period of up to 4 months with the opportunity to postpone another 2 months, as announced by the CNBV. So if you plan to use your credit card during the pandemic, consider the following suggestions.

How to use your credit card and pay your debts

What is your debt limit?

In this moment of uncertainty caused by the health crisis, and you need to know your debt limits, your credit card should not be seen as extra money. Experts recommend that people allocate no more than twenty to thirty percent of their monthly budget that way you won't compromise your budget. Also, consider not using more than fifty percent of your credit limit.

Check your interest rate

Your interest rate refers to the amount of your credit that will be the amount you will pay on your bill. If you think you won't be able to use your card without paying off your debts, try looking for another type of credit with a more advantageous interest rate.

What credit cards can be useful at this time of the pandemic?

Remember that credit cards are a means of making payments that allow a person to buy without having to have the money in hand, but they will have to pay the amount of the purchase on their invoice. However, as much as they bring advantages, it is important that you pay attention to the number of cards you have and which ones are worth keeping in this period of crisis. At times like the one we are experiencing now, cards can be excellent options to overcome emergencies and unforeseen events.

Plan your expenses

As we saw in the three previous topics and it is necessary that you know your purchasing power, do not forget to check the amount of interest that you will pay for your fatures. Remember that in a time of uncertainty it is necessary to plan your expenses so that you do not get into debt. In a way, ask yourself if all your spending is necessary.

The credits for which this support will apply to pay the debt They are housing with mortgage guarantee, revolving and non-revolving of natural persons (personal, of Credit cards, automotive credit, payroll, microcredits), credits of legal entities or individuals with business activity.

We hope this article has helped you rethink how to use your credit card and pay your debts.

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Ways to analyze your financial situation if you are employed