In today’s modern world, getting what you want all the time is no longer impossible. Thanks to credit cards, you can have access to anything that you want to purchase or have access to instant cash in case of emergency. But this accessibility to instant cash can also wreak havoc to one’s finances especially if it goes out of hand. For this reason, only spending what you have should be given importance all the time. After all, if we want to be financially independent, we must commit to only get what we need. One way of controlling the impulse to buy stuff that we don’t need is to have a prepaid debit card instead of a credit card. If you currently don’t have one, you can easily process and get one at https://www.prepaidcards123.com/.
Here are three ways a prepaid debit card helps you financially.
- It allows you to limit what you can spend.
A prepaid debit card works like a gift card but can be used in transactions just like you would with a credit card. You just load some money on your card and use it to buy something. It’s a great alternative to carrying cash. Prepaid debit cards are Mastercard or Visa so if you need to place a transaction that needs any of those, you can still do so provided that your card has enough funds in it. If you want to control impulse buying, this is definitely a good option for you as you can only spend the amount available in your account. It works like a checking account where the money that you will be spending will be deducted from the total balance. There is no way for you to spend more than your balance.
- It will allow you to improve your budget.
Since you have the power to preload your card with funds, it will be up to you how much you are going to add to it so you can control your budget. You will be able to improve your budget if you calculate in advance on a realistic budget of how much you are willing to spend for that week or month. Once you have properly calculated your budget, you can now load your prepaid debit card with what you intend to allocate for it. For example, if you have a prepaid debit card that you intend to use for groceries, you can just load it with the budget you intended in the first place.
- It’s a good alternative if you want to build or rebuild credit.
If you have a bad credit score or you have no credit, having a prepaid debit card can help you adopt better spending habits as well as money management habits. With credit cards, you’ll need to fully pay what you owe and avoid any interests if you want to increase your credit score. If you start practicing that with a prepaid debit card, it will become a lot easier for you to manage your finances once you have a credit card.