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Toss Your Credit Card Debt And Add Real Alternatives
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Author: Jay Jackson
Topic: Finance
Viewed: 58 time(s)
[ Not Rated Yet ]
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Did you get an easy credit card in college? Or, are you someone
who got one for the convenience of being able to pay without
cash? Not aware of other easy ways to borrow money?
Millions of us do this thanks to the unavoidable advertising of
the credit card industry. Few people realize just how many
alternatives to credit cards there are. There are others ways of
using credit without finding yourself swimming in credit card
debt.
Let's take a look at a few.
Debit Cards. Debit cards are often used in many European
countries but are relatively unheard of elsewhere. Basically,
they're just like credit cards and are accepted everywhere
credit cards are accepted. The only (and big) difference is that
they take any money you spend directly from your bank account
instead of you getting a bill at the end of the month. You also
avoid the accumulation of credit card debt using these types of
cards. Be aware though, that you aren't as well-protected from
fraud with a debit card as you would be with a credit card.
Pre-Paid Credit Cards. These are cards that work just like
credit cards except that you can't have a negative balance and
you have to put money on the card before you can spend it. This
card is great if you want to know how much you are spending not
to mention that you have no recurring credit card debt each
month. They're also safer than debit cards since someone who
stole the card can only spend whatever money is on it at the
time.
Bank Overdrafts. A good bank overdraft, used together with a
credit card, can be a far better way of borrowing money than
using a credit card alone. Your overdraft limit is set by the
bank according to how much you deposit into your account each
month plus you don't need to pay it off until you want to.
Basically, it just gives your account the ability to go into
negative numbers. Many banks charge relatively high interest
rates for overdrafts but rarely are these rates as high as a
credit card. They will give much better rates for good customers.
Real Loans. When you're buying one big item at a fixed price
(like a car) or spend all your money on one type of thing (home
improvements, for example), it's worth budgeting it all out and
going to a bank or a loan company. They'll be able to lend you
the money at a much better rate than a credit card would simply
because they know why you're taking the loan. They can set
regular monthly payments for you to repay it.
Credit Unions. Credit unions are like banks, only more local.
They are cooperatives, that is, owned by their members and run
by the community. They are a great place to borrow money because
there are limits in law on how much interest credit unions can
charge. They also don't need it to make a profit for owners or
shareholders, because they don't have any. They are well worth
checking out if there is one in your area.
About the author:
Jay Jackson writes and lectures extensively on eliminating
personal credit card debt and getting your paycheck and life
back. His resources, articles and information are on his
website. http://www.bustcreditcarddebt.com
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