Christmas is synonymous with giving and sharing, and one of the ways to do it is through gifts. Who doesn’t like to see a tree full of gifts and the time to distribute them seem endless? However, it is important that the joy of the dates is not overshadowed by later worry about having spent more than necessary.
Therefore small financial planning actions and use credit cards wisely, It will be key to getting the most out of this product without ending up spending more and compromising next year’s finances.
Benefits of using credit cards for December purchases
Although consumer debt is not recommended, if credit cards are used well they can be an ally when purchasing. And to do this you must be aware of the benefits that your card offers, since each bank and franchise has different benefits and commercial alliances.
First of all, you can check if your card accumulates points or miles, if so, with each purchase you make your balance will increase, so it will be a good idea to use themHowever, the most recommended thing is that purchases be made within one month, not becoming a debt, but rather another form of payment.
For Jaime Jaramillo, founder of Emotional Finance, to take advantage of credit cards it is recommended “Always pay in one installment to avoid interest. After purchasing, schedule payment immediately and reserve the cash in a pocket or account separate from your expenses,” not letting purchases become a consumer debt, but rather a way to take advantage of the accumulation of points or miles.
Another factor will be to review the commercial alliances that your bank has and to which you have access through your card, some in the form of special discounts that can range from 15% to 40% in allied businesses, and others in purchases with 0% interest whether paid in 3, 6, 9 or 12 installments, depending on the alliance.
According to a survey, Entities such as Banco de Bogotá, Bancolombia and Davivienda, have purchases at 0% of interest in stores such as Mac Center, iShop, Mercado Libre and among others. And at Bbva, users can access purchases with 0% at Mario Hernández, Seven Seven, Assist Card, Monastery Couture, Medipiel, Carestino and others.
Whether you buy with a credit card, debit card or cash, recommendations include setting a budget for gifts during the season and not exceeding it, even if you buy with a credit card. For Jaramillo, a good idea is, when giving many gifts, “to use a simple rule: limit per person. It works and eliminates stress,” he said.