Many big time financial and money coaches say the key to be debt free is to pay off those credit cards. Hey, if you're addicted to spending, I agree, that may be the best plan. If you want to go the debit card against your personal bank account route, it may be a better idea to keep a low balance (just enough) to cover expenses because of your increased fraud risk. Then remember to disconnect any overdraft connection to your savings account. Originally, a service banks provided to help customers avoid expensive overdraft fees became another access point to fraudulent access to both your checking and savings accounts.
But, What If You can Manage a Credit Card: I accidentally overpaid a credit card account I manage, and I started thinking about that money sitting as a credit in the account. What if I did that deliberately? Let’s say I have $500 of expenses I pay online with a credit card. Why not pay $500 monthly in advance and treat the credit card like a prepaid or debit card? I am not using my credit limit and I use the card like a debit card and I have the better fraud protection of a credit card instead of the higher fraud risk associated with a debit card. Are you disciplined enough to try this approach? Let me know what you think??
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