Life without credit cards using a savings account
While credit cards seem to be an American staple, something that is seen as a “need” rather than a “want” – you don’t have to live on the roller coaster of credit if you don’t want to.
A savings account is the best way to avoid the credit card trap. I know how difficult it is to save money, really I do. But if you follow these simple tips, you’ll find it easier to save and you can get off the credit card train, you know the one, it only leads to compound interest and more debt.
- Don’t hook your savings account up to your checking account if you are using the bank’s Internet site to check your balance and keep up with your finances.
- If keeping your savings account in the dark isn’t helping, consider starting a savings account at a bank that is not your primary. Do not sign up for a debit card or ATM access if you can help it. Making it difficult to get your money keeps you from spending it.
- Consider a Money Market account. It has a higher interest rate than a standard savings account, and making money on your money might be a great way to keep yourself from getting sidetracked and spending your savings account money.
- Think of your savings account as a credit card. Your limit is how much you have in the savings account. If you spend part of it for an emergency, make payments to your savings account just like you would to a credit card. This will help you from depleting your savings entirely in the event of an emergency that you need to spend money on.
These tips can help you start and keep a savings account, the ultimate cure for having to use credit cards in emergencies.
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