In this day and age of mass media and marketing, its easy to get caught up in the newest toys and products on the market. Whether it be the newest tech or the latest style, we get pleasure from buying these items. Credit cards make money available although you may not have sufficient funds. Although convenient in times of financial struggle you are more vulnerable to overspending and not being able to pay off the remaining balance and everyone of us knows the struggle of trying to find spare change inside our living room couch, so let that not be you and try using a prepaid credit card to compete your goal of managing monthly budgets.
Compared to normal credit cards, prepaid credit cards are more flexible. Credit cards are loaded with a finite amount of money and when that money is depleted you must gradually pay off the balance. Prepaid credit cards in comparison are cards that can be re-loadable with your own funds. Once the cards are loaded it can be used universally at any ATM, store or online where network cards are accepted. Prepaid credit cards are much easier to use because it comes without the stress of unpaid debt. Prepaid credit cards are also one of the most useful ways to budget. Although there are various prepaid credit cards with different features they all have the same concept which is based on flexible banking.
Save on interest charges and over-the-limit and late fees by switching from a credit card to a prepaid MasterCard or Visa prepaid card. Using a prepaid credit card removes the hassle of dealing with credit card debt and interest fees. In this way you could maintain a good credit score without worrying about unpaid debt.
Use prepaid cards instead of cheques, Enter your prepaid card number online in the same way you would use your credit or debit card to pay a bill. This will remove worries of overspending on checking accounts before the cheques for bills can clear. It’s also better because when paying bills you know that the money is in the prepaid cards.
Use prepaid cards instead of cash. Having a prepaid card in hand is much more convenient and ultimately safer than having envelopes of cash with 1000$+. And if you like to do your shopping in the comfort of your home, then a prepaid credit card is right for you. When we use cash, it is difficult to track where that money was spent – unless you are a professional with organizing receipts. With prepaid credit cards you can easily track your expenses and make appropriate decisions when it comes to spending. For instance you can receive daily alerts through email or message notification to tell you when you’ve reached your spending limit.
Limit your spending by adding only the money you have budgeted for specific purchases – Have different credit cards for different purposes.
Budgeting with prepaid credit cards is useful if you want to set a specific budget for purchases. For instance you can have prepaid credit card for weekly grocery shopping and limit the amount at 200$ so you do not overspend. Furthermore when you have a prepaid credit card labelled with a specific purpose it is less likely for you to spend that money. For example you can have various cards for various purposes – groceries, phone bills, gym memberships, vacations, leisure activities etc.
Budgeting with a prepaid credit card may be very challenging at first, but ultimately very rewarding. The way I see it, budgeting with prepaid credit cards is like goal setting. You have to set a monthly/weekly budget for specific purposes – this equals the goal. And the process of following the budget and refraining from overspending is the goal being tested and measured. With a prepaid credit card, it increases your awareness of your overall spending habits. It requires you to be price conscious by making cost cutting habits. But overall it makes you more of a self-aware and motivated individual which can trickle down to other aspects of life you want to succeed in.