In this article we will talk about:
- The problem of control and analysis of credit cards
- How to do a good analysis of credit card bills
- Controlling Personal Spending on Different Credit Cards
- Beware of paying the minimum
- How to control personal spending and cards in practice
We are increasingly using the credit card in our lives, either by the ease of postponing payments that we should make at that time or by the ease of not having to carry a lot of money to and fro. The great problem of this exacerbated use is the lack of control, which has made the debt of Brazilians reach unprecedented levels.
Just so you have an idea, at the end of last year some data indicated about 39 billions of installment purchase debts. To make matters worse, this is the most expensive form of debt on the market, attaining interest of 232% per year.
All of this information leads people to the second big problem of managing personal spending on different credit cards, which is lacking a decent analysis of your credit card bills. If you want to take a look at the current month's invoice until you get a good view, both in the statement sent to you by mail, and in the app:
But when you need to analyze invoices that you have to pay in the future, you get a greater difficulty and a poor view of that part. If you have more than one card at different banks then this analysis gets even more complicated. And to make matters worse, if you do not have a tool that consolidates your personal expenses and family budget, there is a chance that you get into special credit, pay high interest and then get in the way.
So if you're on the same page, the best way to stay out of the red is to better analyze your future credit card postings and follow up to see if your new debt fits into your personal and family budget.
For this, the first step is to find a tool that allows you to put together this information (payment of bills, invoice launches and card data, as well as what you have yielded) in one place. We recommend personal and family budget worksheet.
But to not get too comprehensive, I'll show you exactly how to do this spending control in practice.
By using our personal and family budget worksheet (personal finance) the only effort and work you will have to control personal spending on credit cards is to make a spreadsheet post every time you have a card spent.
Assuming that we are in the month of January and that we have the following scenario:
- we have already paid the first of 3 installments of R $ 300 for a repair in our car
- we have already paid a purchase in the credit with a single installment of R $ 150 referring to the purchase of a clothing
In addition, in the same month we made the following expenses:
- Light bill payment on demand
- Purchase of a gift jewel in the amount of $ 6.000, in installments in 6 times
- Purchase of video game games worth R $ 600, installments in 2 times
This is the view we would have of the postings in the worksheet.
See in the balance column (last), that credit card payment amounts have not been debited. This is because the credit is always thrown to the next invoice and this occurs automatically in the worksheet. That way, when looking at the invoices of the credit cards of the following month (February), we would have the following visualization:
Since we have not yet arrived in the month and do not schedule any payments, just mark the status as not paid. This type of analysis already allows a knowledge of the accounts payable of future months. See that the Visa card we accumulate R $ 1.000 of one of the pieces of the jewel and more R $ 300 of one of the parcels of the repair of the car.
If we arrived on the invoice due date and made the payment, it would be enough to mark the status as payment that we would automatically have the change of the balance with reduction of the values referring to the card.
You can see that in a simple way you can control the expenses of more than one credit card, even if they are from different banks. The cool thing is that in addition to this personal and family budget worksheet it will be possible to analyze reports of future postings on the card for the current year. See that all of our releases appear in the demo below:
Another very cool analysis is the visualization of your accounts payable along with your accounts receivable to understand if there will be a need for cash on any of your used cards. In that case, simply choose the card option to view the accounts receivable data (in our case R $ 10.000 per month) and accounts payable (vary according to unpaid billing of your credit card bills).
See how controlling your personal spending is easier than you thought? With a few releases you can analyze all the information related to cards (debit or credit), purchase with cash and even checks.
As we are talking about credit card purchases, which is a way to get into debt, it is worth to draw attention to a very common problem that people with little financial planning end up facing: only having money to pay the minimum or lower value of the than the total invoice.
It is as if your invoice came from R $ 1.000 and you only paid the stipulated minimum or a value below those R $ 1.000. In these cases, banks charge extremely high interest on the debit balance that you have left and this can eventually turn into a snowball. Therefore, whenever possible, remove all your debts from the month so that this amount does not increase exponentially.
I hope the article has helped you finally find a solution to control your personal expenses. All the images used were from our personal finance worksheet (personal and family budget), which already has the whole structure ready for you to use.