When you sign up for a debt management plan, your creditor closes your credit card accounts. So how can you move forward with daily life and expenses without making use of credit? Plan ahead so that you can use one of these four methods to pay for your purchases.
Four Ways to Pay for Items without Increasing Credit Card Debt
- Debit Cards: As long as your debit card has an accredited logo, you can use it to pay for most items in the same way that you used to pay with credit cards. Track your spending so that you can cover all of your bills, and talk to your bank about overdraft protection options, so that you can protect yourself from expensive overdraft fees. Also, be aware that some businesses may add a hold to your debit card. For example, a rental car company may hold an extra $200 and then refund it when you return the borrowed car.
- Prepaid Cards: Another alternative to using a credit card is to purchase a gift card issued by a major credit card company. Before purchasing one of these cards, check to make sure you don’t have to pay expensive fees while using the card.
- PayPal: Try setting up a PayPal account that is connected to your checking account. When an online company asks you to choose your payment method, simply look for the PayPal logo. By using PayPal, you can use your bank funds without giving away your debit card number. Also, thanks to smartphone technology, you can even use PayPal’s mobile app for checkout in many brick-and-mortar stores.
- Layaway: Many stores have layaway programs that will hold items for a certain term while you make payments toward the purchase price. When you’re shopping for a specific occasion or holiday, just make sure to leave plenty of time to pay for and pick up the item.
Enrolling in a debt management plan is a smart choice, and you can navigate life without a credit card. In addition, the discipline that you learn will help you meet your financial goals long after you’ve paid off your cards.
If you don’t know how to make a debt management plan, reach out to a company like CreditGUARD that can help you find debt relief.read more