Learn how from credit cards to make allies. This week participants in the project were looking for information that would resolve their concerns about the credit card.
At the start of working life, almost everyone experiences a moment when they need to solve the dilemma - to take a credit card or not. John - a participant in the project, who is employed less than a year is just on that dilema.
"During my studies I had a student card, but now I do not have a credit card. I'm thinking that I take, although some say that I do not need it, and some others that it will make my life easier. I have to think about whether I really need it," says John Upton. Although many argue that credit cards are not compatible with savings and control over finances, our financial expert says this is not so.
"First, it should be said that- if you intend to use a credit card primarily for taking cash out, then you use it in the wrong way and you do not save. You should look taking cash out as the service which will be used in exceptional circumstances. If you use it in order to keep accurate records of consumption later, and by the way take advantage of some of the prize programs and additional services, then you use it in a reasonable manner, "says Susan Woodgate, adviser for personal finance from the company Progreso.
Help for money management money instead of 'ironing'
It is the coherent state of the household budget key to handle money sensibly, says this expert. John Upton says that he records his costs.
Estimate of the cost through charts
John is interested in the possibility of inserting numbers into the system and then to have visual insight into how much money goes where in the charts.
Like most young people, John is not completely informed about the additional services that banks that issue credit cards give to their customers. For example, in some banks with classic MasterCard card you will have no additional charge insurance coverage of accidents on journeys and they are paid for this card, and the service may include payment of hospitalization abroad, compensation for flight delays and luggage and the many others.
Smart choose the additional services
"If you want a credit card, you have to ask the bank that issues it about the benefits it brings," says Robert Donalds. They can be very different, some of these can be useful and some almost useless. Also, fees for similar cards vary from bank to bank and are often more favorable in that bank where you are a client. It should be said that the card under the same name offer slightly different services and conditions depending on the issuing bank.
Although John knew that there are differences between debit, credit and revolving credit cards, however, asked for further clarification.
He learned that a debit card is actually used by the card at an ATM or at a bank in order to withdraw his salary. It enables access to money that has, but also allowed minus on which the interest is paid if it is used.
A credit card is one with which in principle a user can buy in installments (with interest or not, depending on the contract between issuer of credit card and the outlet) within the approved limit. It can be also used to pay off all expenses. This is the most common credit card and can perfectly serve as a mean for controlling costs.
Decision without hurry
Revolving credit card is one on which the user has agreement with the bank to certain amount that can be debited with the payment of interest. Within this amount users can buy anything they need, but it is not paid off it in equal fixed installments like classic cards. "If they have money, they can pay off all at once, or they can pay half of it, a third, or even less rate. They decides on installments, whereby it must usually be at least five or ten percent of the amount that remained as debt.
At the start of working life, almost everyone experiences a moment when they need to solve the dilemma - to take a credit card or not. John - a participant in the project, who is employed less than a year is just on that dilema.
"During my studies I had a student card, but now I do not have a credit card. I'm thinking that I take, although some say that I do not need it, and some others that it will make my life easier. I have to think about whether I really need it," says John Upton. Although many argue that credit cards are not compatible with savings and control over finances, our financial expert says this is not so.
"First, it should be said that- if you intend to use a credit card primarily for taking cash out, then you use it in the wrong way and you do not save. You should look taking cash out as the service which will be used in exceptional circumstances. If you use it in order to keep accurate records of consumption later, and by the way take advantage of some of the prize programs and additional services, then you use it in a reasonable manner, "says Susan Woodgate, adviser for personal finance from the company Progreso.
Help for money management money instead of 'ironing'
It is the coherent state of the household budget key to handle money sensibly, says this expert. John Upton says that he records his costs.
Estimate of the cost through charts
John is interested in the possibility of inserting numbers into the system and then to have visual insight into how much money goes where in the charts.
Like most young people, John is not completely informed about the additional services that banks that issue credit cards give to their customers. For example, in some banks with classic MasterCard card you will have no additional charge insurance coverage of accidents on journeys and they are paid for this card, and the service may include payment of hospitalization abroad, compensation for flight delays and luggage and the many others.
Smart choose the additional services
"If you want a credit card, you have to ask the bank that issues it about the benefits it brings," says Robert Donalds. They can be very different, some of these can be useful and some almost useless. Also, fees for similar cards vary from bank to bank and are often more favorable in that bank where you are a client. It should be said that the card under the same name offer slightly different services and conditions depending on the issuing bank.
Although John knew that there are differences between debit, credit and revolving credit cards, however, asked for further clarification.
He learned that a debit card is actually used by the card at an ATM or at a bank in order to withdraw his salary. It enables access to money that has, but also allowed minus on which the interest is paid if it is used.
A credit card is one with which in principle a user can buy in installments (with interest or not, depending on the contract between issuer of credit card and the outlet) within the approved limit. It can be also used to pay off all expenses. This is the most common credit card and can perfectly serve as a mean for controlling costs.
Decision without hurry
Revolving credit card is one on which the user has agreement with the bank to certain amount that can be debited with the payment of interest. Within this amount users can buy anything they need, but it is not paid off it in equal fixed installments like classic cards. "If they have money, they can pay off all at once, or they can pay half of it, a third, or even less rate. They decides on installments, whereby it must usually be at least five or ten percent of the amount that remained as debt.
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