Well, we know that paying for purchases in instalments can be a real trick, but when instalments get out of control and it is necessary to “re-pay” the bank invoice, then it’s time to take it easy, breathe and try to get organized ASAP.
If that’s your case, be sure to check out the tips and advice we’ve set out below and understand once and for all how the payment of your credit card bill in instalments works.
Let’s start? So, good reading!
What is credit card payment in instalments?
The payment in instalments of the credit card bill is an option normally granted by the credit card companies, in case you are not able to pay the entire instalment of your purchases for the month.
For example, this month you saw a lot of cool offers and promotions and, without even making a financial plan, you decided to buy everything you were entitled to in instalments.
Thus, we assume that the sum of all instalments to be paid that month has been R$1,000.00, but at the end of the period, you don’t have all that money. The alternative, then, is to also pay this bill in instalments, right?
In other words, the payment in instalments of the invoice, in fact, is another option to “re-parcel” the sum of your purchases at the end of the month with the bank. 😉
And who can pay the bill in instalments? Do all cards accept this service?
Banks almost always offer two types of options: pay the minimum or pay the bill in instalments.
In the latter case, it is a service to pay your customers’ monthly credit card bills in instalments, and if you don’t have it, you can consult your manager and confirm this availability.
In general, it will only not be granted to customers with other larger debts, with a history of credit problems or with very serious financial difficulties.
In any case, if you really need this option, don’t hesitate to pay the bank a visit and explain the situation to the manager.
What are the advantages of paying the card bill in instalments?
Now that you know how instalment credit card bills work, it’s really worth it to extend your obligations even further and extend the payment time for your purchases.
Well, let’s go! At first, it may seem like a good move and a “comradeship” of the bank to offer one more instalment payment, in addition to what you had already committed to purchases, right?
But it is necessary to take into account that behind this service are interest rates a little more salty than usual. After all, the bank doesn’t play to lose!
In addition, it is important to remember that these new instalments will be added to the other outstanding instalments next month, running a serious risk of turning into a snowball, got it?
Therefore, it is only a game to pay for the card bill in instalments, in case you really don’t have that money to pay off the regular monthly instalment and you are guaranteed to organize and control yourself with the next expenses until everything is paid for correctly. And that’s the crux of the matter!
And how to organize finances to avoid splitting the bill again?
Well, the main secret here is financial education! Okay, okay! We know that this is not just about snapping your fingers and that’s it, everything is resolved overnight!
But, truth be told, no one but us can catch up on our finances and avoid new headaches in the future, would you?
So, if you’re going to need to pay your card bill this month, here are some tips:
Wipe up next expenses
As we’ve highlighted, paying your credit card bill in instalments can become an endless snowball and hinder you even more at the end of the month.
Therefore, the first tip for this not to happen is to cut unnecessary expenses that disappear in the next instalments in the following month.
And how to do this? Well, you can, for example, make a list of what is really necessary during this period, avoid taking your card out on the street, list priorities, reduce consumption that month, among other options. ✅✅
lower your limit
If splitting up the invoice is already a recurring problem in your routine, a useful tip is to recalculate your credit limit with the administrator. This way, you can organize yourself better and have a maximum ceiling on what you can spend within that period, without having to worry about your finances at the end of the month.
Choose other shopping alternatives
Credit cards help, but they can also become a shot in the foot for those who don’t have much control. Therefore, a nice tip for you to avoid more expenses and having to pay the bill in instalments at the end of the month is to try to find other forms of payment for your purchases, such as debit, special instalments at the stores or even in cash. 💴💰
organize your finances
Remember we talked about financial education? So, know that no one needs to be an economist or a manager to do this in practice.
The thing here is to try to organize and control everything you buy and need to pay, according to your earnings and needs for the month.
And for that, there are apps for smartphones, you can create a simple spreadsheet in Excel or even use the good old paper notebook.
The idea is to always separate how much you earn on average and set a safe limit on how much you can spend on purchases, without giving up fixed expenses, such as bills, rent, financing, etc.
In summary, these are the tips on how instalment credit card billing works and how this strategy may not always end well. In addition, as we have seen, it is possible to organize better based on good practices and, of course, resort to other less “treacherous” payment options.