Avoid credit card interest rates.

From Infomoney – Data from the Central Bank indicates that revolving credit card interest rates rose 7,8 percentage points between January and February. In the second month of 2015, rates reached 342,2% per year, compared to 334,6% per year in the previous month.

This means that if a person fails to pay R$ 100 of their credit card bill in one month, by the end of the following month, the amount will have already jumped to R$ 112,70. According to financial educator Reinaldo Domingos, this is a situation that leads many Brazilians to bankruptcy.

"So, the question remains: is the credit card a villain or an ally of family finances?" asks the expert. "It's necessary to understand that this is not the right mindset. The card is a safe purchasing tool that can bring advantages, if used properly, such as mileage and a few days to pay for a purchase. However, if misused, it can cause serious damage to financial health, becoming a vicious cycle," he explains.

Here are ten tips from Domingos on how to use your credit card in the best way possible and avoid high interest rates:

1. The credit card limit should not exceed 50% of the monthly salary or income. This prevents the person from spending more than they earn.

2- Due to the ease of installment payments on credit cards, people's debt is increasing every day. When making fixed installments, it is necessary to be aware that you are committing future months of your monthly budget;

3- The biggest mistake with credit cards is paying only the minimum payment; this should be avoided, says Reinaldo. The high interest rates charged end up leading people to default. If you can't pay the full amount, look for another line of credit that doesn't exceed 2,5% per month;

4. Avoid paying annual credit card fees. Today, it's possible to find cards that don't charge any maintenance fees. Also, never lend your credit card to another person, even if they are someone you know.

5- If you only have one monthly income, you should only have one credit card; if you earn weekly, you can have up to three cards, for the 10th, 20th, and 30th of each month. This way, you can make purchases six days before each due date, gaining 36 days to pay.

6- A financially responsible way to use a credit card is to know how to take advantage of the benefits it can offer, whether rewards or mileage programs;

7- If you lose control of your finances and are unable to pay your credit card bill in full by the due date, you need to immediately conduct a financial assessment and identify the real problem. Along with this, you should seek a line of credit with low interest rates.

8- It is important to be aware that when paying in installments with a credit card, interest will be charged on each payment;

9- "Remember, you wouldn't lend money to a stranger to pay back in installments without interest, would you?", the educator asks. "The answer is no, therefore, save money, buy in cash and ask for discounts";

10. Using credit cards without thinking encourages impulse buying. Therefore, it's necessary to be responsible when consuming; always ask yourself if you really need it, if you have the money to buy it, and if you can pay the full credit card bill when it's due.