Credit cards: how to optimize your budget?

Is your wallet overflowing with credit cards and your finances paying the price? Discover our advice to optimize your budget and find a healthy economic situation!


How do you get to the excessive accumulation of credit cards?

How do you get to the excessive accumulation of credit cards?

Credit cards sometimes land too easily in your wallets. We can easily illustrate this with a simple scenario: You go shopping and the store offers you to subscribe to a credit card. The card is attractive because it allows you to benefit from an attractive discount on your purchases… And that’s how a new credit card ends up in your wallet!

There are also situations that generate the need to have a credit card, such as certain purchases on the internet or trips abroad. Credit cards are then presented in these cases as essential for the settlement of transactions.


Payment on credit: is it advantageous for the consumer?

Payment on credit: is it advantageous for the consumer?

What is the point for a large brand to offer you payment on credit? Is it really a favor to give a discount when buying on credit? Are you really aware of the consequences of paying on credit on your budget?

Credit cards always generate exorbitant fees, especially compared to private credit. In the end, the discount offered in the event of purchase on credit is completely absorbed by the fees incurred by the credit card. Beware of the discounts allegedly offered when paying on credit! They ultimately cause instability in your budget.


Credit card monthly payments

Credit card monthly payments

Each credit card issuing body establishes its own monthly payment conditions. Generally it is required to pay a minimum amount per month for a credit card.

When the cards accumulate, the minimum payment of monthly payments can prove to be particularly heavy for the budget of the consumer! For example: you have a card A on which you have a credit of 5000 dollars and a credit card B on which you have a credit of 3000 dollars. If for cards A and B you have to pay a monthly payment of 10%, then you pay 800.- each month for your credit cards! And that without counting the other costs (interest, annual costs, financing costs, etc.).


Clean up your budget!

credit loan

To stabilize your budget and reduce the amount of your monthly bills, it is possible to buy back credit. What is this operation and what is its impact on your budget?

Let’s take a concrete case: Mr. Huller applies for a loan from our financial partner Best bank. Best bank notes that Mr. Huller already has several credit cards, an outstanding credit and a leasing. Best bank then offers a loan buyout to Mr. Huller. This repurchase includes balances of credit cards, outstanding credit and leasing. This then allows Mr. Huller to settle all outstanding credits! However, even if the credit cards are reset, they are not canceled (it is up to Mr. Huller to terminate them).

The consolidation operation then makes it possible to have a more stable financial situation, to reduce the burden of monthly payments and to reduce the costs generated by the various credits. If you accumulate the credits, it is then interesting to opt for the repurchase of credit. Best bank is at your disposal if necessary!

November 12th, 2019 by