Credit cards are just bad mojo. When we use them we practice sloppy spending habits because we think less about the purchase price than we should. Using plastic allows us to impulse buy or to spend more than we should when we don’t really have the money. They’re really a bad bargain.
Now I know what you’re going to say. You’re going to say that they’re great if you pay off the balance every month because then you’re in essence using someone else’s money to buy your goods and services. In the process you’re also building your credit and proving you’re a solid citizen, yada, yada.
But the reality is that most people do not pay off their credit card balances every month. The reality is that most households carry more than a few thousand dollars in balance from month to month. And the reality is that people who make just the minimum payment each month will stay in debt their entire lives.
So stop the madness already. Switch from a credit card to a reloadable prepaid debit card. Prepaid debit cards are real Visa Cards and MasterCards. They’re accepted everywhere their cousin credit cards are accepted. Plus they’re available to you regardless of your credit rating. That means you could have a big fat zero for a FICO score and you could still get a reloadable debit card.
The trick with these debit cards is that you must load them up with cash before you can use them. It can be a little bit of a hassle but it forces you into thinking more than a nanosecond about your purchases. When you think about your purchases you’re more likely to buy things you really need and you’re less likely to buy something on impulse. Most importantly, you’re less likely to move deeper into debt.
Don’t confuse your own bank’s debit card for one of these prepaid babies. Your bank can still attach all kinds of fees to their debit cards because they’re attached to your accounts. We all know about bank fees don’t we? They’re 100% designed to make the bank more money and to trip you up at every turn.
A prepaid debit card will also come with fees but they fill up a much shorter list than your bank fees. They’ll also be easier to understand. You’ll never be surprised with an overdraft fee from a prepaid card because they don’t have any.
Prepaid cards aren’t free to use but their usage fees will look tiny compared to the interest amounts you pay each month on a credit card. An added bonus is that you can walk away from a reloadable card any time you want. Just spend down the remaining balance and say goodbye. Not so easy to do with a credit card now is it?
Stop your credit card habit before it consumes you. Switch to a prepaid debit card and start spending with your brain and not your ego. If you can make the switch, you can eliminate credit card debt.
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