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Amazing Alternatives To Credit Cards

Almost everyone nowadays has a credit card. Young adults tend to get excited having one because it seems so convenient. What they don’t know is that as time goes by, they get older and wiser, they will realize how it is actually not that great because it puts them into debt. If you ask a person if they want to be in debt, no one, not even a single person, would say yes.

Yet, almost everyone has a credit card. That is one of the disadvantages of having a credit card, it is basically encouraging people spend money they don’t have, at first it may seem like free money that you could just always pay for at the end of the month, but then once your bill comes, you will realize you don’t just have to pay for what you owe but for the interest as well, which can be very big.

The worst thing is that credit cards can be stolen, not just the card, but the receipts as well, even online, although it can be prevented, you just have to take extra good care of it. That is why we have come up with the greatest alternatives for people who don’t want to use a credit card.

“It is imperative that we make consumers more aware of the long-term effects of their financial decisions, particularly in managing their credit card debts so that they can avoid financial pitfalls that may lead to bankruptcy.” Daniel Akaka

DEBIT CARD

This first one is actually a good alternative to credit cards because it doesn’t necessarily put you into that big of a debt. Simply because debit cards are connected to your account, where your money is, that would then make you spend the money that you already have, unlike with credit cards, it makes you want to spend money that you don’t have, which is basically like a temptation device.

A debit card is like using a credit card, but without interest charges, annual fees, and of course, debt. It has its own disadvantages just like everything else, especially when it comes to protection. When your debit card gets stolen, you could lose every penny you have in your account if you don’t report it right away. Debit cards are good for shopping since you wouldn’t overspend, but it is not technically good for paying to hotels or rental cars etc.

CASH

Well, of course, you wouldn’t want to forget that you could just always bring cash. Before there is any form of credit cards and debit cards, there is cash. With cash, you could pay for everything, without having to worry about spending money that you don’t have and of course, no debts for you that’s for sure. However, one of the reasons why there are credit cards and debit cards in the first place, carrying around cash can be a hassle, since it’s bulky, especially coins.

PREPAID DEBIT CARD

This type of debit card is actually pretty convenient as well because what you can do is to just load it with a certain amount of money whenever you think you will be needing it and just simply use it. However, there are also fees that go with it, like monthly account maintenance fees, transaction fees, and even ATM fees.

CHARGE CARDS

For the benefit of the doubt, charge cards are different from credit cards. This has been a misconception for the longest time. It is actually similar to credit cards, but they don’t have a pre-set spending limit, what it offers is that it would prevent you from overspending. For instance, you have been spending money too much compared to usual, the company would then contact you if everything is fine and they could also let you know about things you should know as well.

“Credit card issuers and HELOC lenders are like fair-weather friends: they cozy up to you in good times, but when the economy heads south, they abandon you faster than Usain Bolt runs 100 meters.”Suze Orman

ONLINE PAYMENT/DIGITAL WALLET

Last but definitely not the least, is probably the most convenient way in this generation when it comes to money. Online payment is so convenient, that all you have to do is to connect your account to your preferred app on your smartphone, and you can pay for things through there. Same goes with digital wallets where it is literally a wallet in your phone, where you could add some money in. Since everyone has a smartphone these days, this has become very convenient for everyone.

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