Why I Stopped My Credit Cards and Started Using Prepaid Debit Cards
A lot of people are surprised when I tell them that I no longer have a credit card. This is mainly because we live in an era where you have to have one. There are however ways to get by without one and I am glad that I got rid of my credit card and replaced it with a prepaid credit card.
The main reason that I have stopped my credit cards and gone to prepaid debit cards is to save money. The cost of interest on my credit cards is a huge expense that quite frankly isn't worth it. By going with a prepaid card I don't have to worry about since there is no interest. There is a small fee when I initially get the card but if you take the time to
find the best prepaid debit card the fees are quite reasonable.
The other big reason that I have decided to stop using my credit cards is that it helps me to control my spending. The problem with credit cards was that I was able to spend money that I didn't have which tended to lead me to spending more than I wanted to. This made it impossible for me to stick to a budget. With a prepaid card I can't spend more than a put on the card which helps to keep my spending under control. Sure I can still spend more than I intended to but to do it I have to go to the trouble of putting more money on the card. This reduces the impulse buys if nothing else.
One of the other concerns that I have about credit cards is the risk of identity theft. This has to be a huge concern for everybody since anyone who gets your credit card number can do a lot of damage. This is not a concern with a prepaid card since it doesn't include any personal information. The worst case scenario is that somebody can spend the money that I have loaded on the card. They can't however open new accounts in my name or ruin my credit since they won't have the necessary personal information.
The last reason that I am no longer using a credit card is that I am concerned about the trend towards relying on them. There are now many businesses that insist on credit cards. The problem is that it means that it is going to cost me an increasing amount to use my own money. The use of credit cards for everything is great for the banks since they make more money and they get access to all kinds of information about me. As somebody who is concerned about privacy and who doesn't want to see cash replaced by credit cards not having one is my way of protesting this. I can always use a prepaid card if I need one.