The high unemployment in our country and the need for money at certain moments makes part of the population in Bulgaria resort to tools, the use of which may endanger the financial health of the household in the future.
1. Always keep one thing in mind when using a credit card Legendary investor and one of the richest people in the world - Warren Buffett, gives a very popular advice to young people: stay away from credit cards. Yes, it's easy to say when you have over $ 59 billion, but Buffett is right. If you still want to take advantage of this tool, be careful what your costs will be when using the card. Most banks have a fairly high APR (annual percentage rate of charge) when withdrawing cash, and they can even exceed 30%. When buying APR is significantly lower, but still 20-22% is also quite expensive. Therefore - if you already use a credit card, think before you use it. And why not close it? Do you know how much you will save, especially if you have an annual fee, which can exceed BGN 200.
2. Fast loans Yes, credit cards are nothing compared to fast loans. We have repeatedly said that they are easy to take, but quite difficult to return. The companies that give out quick loans (in most cases for amounts up to BGN 300-400, with an initial loan) are quite active in times of crisis and unemployment. The idea here is that people can not turn to the bank to fill the gap in the family budget to salary, or that from time to time there are unforeseen expenses - illness, first day of school, birthday, etc., for which we are not prepared. Our advice here is to first try to solve your financial problem without the intervention of the above companies, because if you pay up to 30% per year for credit cards, here the interest rates may be similar, but on a monthly basis.
3. Fees and commissions Fees and commissions are the main sources of income for banks. In case you have to close your account or credit card, the bank will charge you a certain amount, which is not pleasant, right? But this may not be the main thing. If you use an ATM daily or several times a month, do you know how much it costs you? In most cases, if you do not use an ATM of the card issuing bank, you will have to pay up to BGN 1. Yes, BGN 1 is not a lot of money nowadays, but with 5 uses per month this makes BGN 60 per year.
4. Promotional offers Whether it is a deposit, credit, credit card or other product offered to us by banking or non-banking institutions, pay attention to the absorption fee, interest rates and whether you can afford this cost. An utilization fee of 1.5 or 2 percent of our loan may partially change our plan, because with a loan of BGN 50,000 and a 2% fee, this will mean that your account will receive BGN 49,000. It should not be forgotten and for a fee for early repayment of the loan, as well as the opportunity for the bank to change our interest rate over the years.
5. Supermarkets The Bulgarian spends mainly his money on food and drinks. According to NSI data, this expenditure costs us about 31.5% on average per household. That is why we must be especially careful when shopping and know how to save, even a penny.
Supermarkets apply a lot of tricks that make us shop more and more. Of course, this can be avoided, but we must follow the shopping list, as well as think and think before you put a product in your cart, which, coincidentally or not, is large ... and quite a lot.
Last but not least, experts advise to shop after we have eaten, because otherwise we may end up with a lot of unnecessary products in our refrigerator, which we can then throw away due to the expiration date.
Source: profit.bg