Mastercard executive provides guidance on credit and debit card usage

Effective use of credit cards requires understanding key financial terms to avoid unnecessary interest and debt. Essential concepts include the credit limit, the closing date (fecha de corte), the balance at closing, the payment deadline, and the minimum payment. A common error is paying only the minimum amount, which leaves the remaining balance subject to financing interest.

Federico Martínez, President of Mastercard for Colombia, Venezuela, Ecuador, Suriname, and Guyana, suggests that the choice between credit and debit cards should depend on the specific purchase and consumer needs. He recommends using credit cards for high-ticket items where the consumer may want to utilize installment plans or financing options, whereas debit cards are often more suitable for routine, everyday expenses.