As someone who paid for their honeymoon with credit card miles, then cut up all their credit cards after listening to too much Dave Ramsey, then reopened them, and now uses debit cards almost exclusively – I am very excited about a brand new possibility that lets me get all the benefits of credit card without any of the drawbacks.
I really like debit cards because they prevent overspending and won’t let you get yourself further into debit. However, I am no stranger to the difficulties that going completely credit card free can cause you. As renters our credit scores are important because many land lords check them. Plus when it finally does come time for us to buy a house we may want a good credit score. Also, I travel with work and when you are renting a car in Texas with a Minnesota drivers license they are going to require a credit card, believe me I know. Finally, as much as I believe most people are at a net loss with credit card perks due to the overspending they induce, a debit card with those same perks might be the perfect mix of reckless responsibility.
For a while I had been using my credit card for purchases to get points and better consumer protection. To keep myself from overspending I would put each expense into my budget on my phone at the store or wherever I just bought something. This worked pretty well but required some discipline and was a bit cumbersome. As soon as I got off track, it would be hard to get back on too.
So, I eventually went to using my debit card – except for the occasional car rental etc. Obviously, this opens me up to a bit more hassle if my debit card was compromised, but it made sure that I didn’t overspend or get off track.
Just today I learned about a new, free service that will allow me to use a credit card like a debit card. It works with any credit card too! Typically when you spend with a credit card the money doesn’t leave your bank account for 30 or 40 days, which is how people get into trouble. You rack up expenses for a month then realize that you don’t have enough in your bank when the bill finally comes so you carry a balance.
This service claims to change all of that by reducing that 30-40 day window down to one or two – just like a debit card! Essentially you still use your credit card to make a purchase, but this free service sees the transaction and starts the process of withdrawing that same amount from your bank account that same day.
I am very hopeful about this service because it is exactly what I have been wanting in the business model to keep it free actually makes sense. I will be trying it out and letting you know how well it works. If you haven’t already go to the bottom of the page and put in your email so you don’t miss the updates about it.
PS: I just found out that if you use my referral link you and I both get $10! So use it!