3 Alternatives To A Credit Card

In today’s society, the number of people going cashless is rapidly increasing causing the use of credit cards to decline. But, is this a good thing? In some cases, they can be extremely helpful however, in others, they could be the worse idea possible. For example, those who have a bad credit score or a poor track record with their finances would not benefit from this type of credit. This is because it may cause further debts which are hard and stressful to repay. Therefore proving that credit cards do not suit everyone. Fortunately, with all the information available online, you can easily find some sort of help, even from us. Here are three alternatives to a credit card that allow you to change your spending.

Debit Cards

Typically, debit cards and credit cards look extremely identical as they both have similar numbers, dates and pins. But, the purpose they hold is actually very different. Credit cards allow you to borrow money that isn’t yours to purchase items, whereas debit cards only allow you to use the money you have in your account. Both can be used in the majority of purchases including shopping or holidays. Therefore enabling users to spend without having to worry about falling into any kind of debt from overspending. As you can see, debit cards allow you to spend your money in the same way,  just without extra fees or interest rates, making them a great alternative to a credit card.

Cash Only

Switching your spending habits to cash will not only cut back on your outgoings but also allows you to gain complete control due to the psychological aspects surrounding money. Avoiding all plastic cards will definitely change the way you spend as you can recall what you are purchasing and exactly how much you have left at any given time.

As expected, the use of cash is becoming less popular due to the convenience of the other options available. Although credit cards offer flexibility like no other source, they can be very harmful and lead to damage like debts. Whereas one of the main downsides to a cash-only approach is having to carry your wallet/bag everywhere with you. It not only weighs you down but also be very time-consuming. The two offer hugely different downsides that are both inconvenient but one is far less severe. Therefore proving that cash is a great replacement.

Short Term Loans

Depending on the amount you’re wanting to borrow, short term loans can offer a better solution than credit cards. They both possess their own lists of pros and cons which should be considered before finalising any decisions. One of the downsides to a credit card is when you begin overspending, it is very difficult to stop and get back on track as you always know there is some money to be spent. Whereas, if you borrow a short term loan, it is done completely separately from your card provider. This means, once your loan is gone and has been repaid, you’ll have to apply for another in order to borrow more. For help with short term or payday loans, click here.