Using a credit card as an unemployed person does not sound like a good idea, and it is often not. However, even if you are temporarily unemployed, your credit card may not be worth terminating.
However, if you still have a credit card in your wallet when you are unemployed, you should carefully consider when and how to use the card to avoid financial difficulties. We’ve put together tips for using your credit card safely when you’re unemployed!
Check credit card rate and annual fee
In the event of unemployment, you should check your annual credit card fee and interest rate. While working, you could easily afford to pay a high annual fee for a premium credit card, but as an unemployed person, the same is no longer the case, and you should replace your credit card with an annual fee, or at least the lowest.
possible. For example, the annual royalty-free Goodbank Mastercard Gold can also be earned by students and the unemployed, and comes with some nice added benefits, such as product insurance against loss, breakage and theft of products paid with the card.
Please check your direct charge charges
There may be a number of direct charge charges which may go unnoticed on your credit card, since you will not even notice them. For example, various video and music streaming services are typical direct payments that are charged to your credit card monthly. However, the unemployed people, it is worth considering whether the services are really fun and rewarding, and above all, whether they can still be afforded.
Not all services need to be terminated, but if you use multiple services, reducing them is recommended. Keep your subscription active only for your favorite service. One option to reduce the cost of streaming services is also to choose a cheaper subscription format. Some services can also be used for free, although the user experience will be heavier because of poor features and ads.
Don’t pay for things you can do yourself
It’s easy to buy services when you are at work, which could well be done by yourself. However, being unemployed is more than money, so it is worth changing your hair coloring to a hairdresser at home. In addition, for example, the car can be washed very well instead of the expensive machine wash.
However, if you would rather buy services than the chores yourself, you should definitely not pay for these expenses with credit, but with funds or cash on your credit card.
Savings or credit card?
If you have money in your savings account for a bad day, you should seriously consider financing unexpected expenses with savings rather than a credit card. Partially paying for savings is also a better solution than paying the full amount on a credit card. However, if you decide to finance your surprising expenses with a credit card, you should try to pay for your credit card bill as much as possible within the non-interest payment period.
Avoid emotional shopping
Unemployment can be miserable and depressing, and nowadays, more and more people are shopping when they need to cheer up their daily lives. However, a moment’s buying craze only adds to the anxiety of going shopping when the money is not really up to waste. Especially, these evil deportation purchases should not be paid by credit card!
Pay your credit card bill wisely
Especially when unemployed, it is very important to remember to pay your credit card bill wisely. Credit cards generally offer an interest-free payment period of about a month or slightly more, after which the credit begins to grow in interest. To avoid the accumulation of interest costs, you should always try to reduce your credit card bill as much as possible, whether you are unemployed or not. The snowflake effect can help shorten your credit card bill.