Credit cards can cause loads of financial issues. From soaring interest rates to overspending on your monthly budget, people are finding that credit cards aren’t the easy option they were once touted to be. Instead, more and more savvy spenders are choosing the route of the prepaid debit card. Here’s why:
Credit Cards Tack On Interest Rates – Making Your Purchases More Expensive
Oftentimes, interest rates on credit cards are steep and unrelenting. In 2017, the average APR (annual percentage rate) on credit cards was 12.54%. And just last month, that number rose to 17.69%. That means for every dollar you spend with your card, you’re adding on at a minimum, an extra $0.18. That may not sound like much, but say you use your credit card to buy groceries. If you spend $200 in groceries, it’s actually costing you $235. See how that extra interest can add up quickly?
Credit Cards Create Habits of Overspending
There’s no better way to struggle financially than to dig yourself a money hole you can’t get out of. Credit cards serve this purpose in two ways: interest rates creating steeper budget constraints and the instant access of funds at your fingertips. By allowing yourself to spend with plastic when you don’t have the cash, you’ll find yourself stretched too thin at the end of the month when the credit card bill comes in.
When Prepaid Debit Takes the Place of Credit Cards
If you’re ready to get your finances under control and start having more freedom with your money, then prepaid debit is the wise choice. Prepaid debit cards allow you to work with what you have, not what you can rack up and pay off later, which will help you keep your budget in check. But that’s not all! Prepaid debit comes with several other perks.
1. Say Goodbye to Interest Rates FOR LIFE!
Prepaid debit has a perk you won’t find with credit cards. No interest rates! That means your $200 trip to the grocery store is just that – $200. You’ll find you have much more available in your wallet when you’re not doling out extra every time you swipe your card.
2. Leave Your Monthly Bill Behind
Those annoying credit card bills will be a thing of the past when you switch to a prepaid debit card. By making the switch, you’ll only ever spend what you have, when you have it, which means no surprise bill at the end of the month to try to come up with the cash to pay.
3. Enjoy Security and Peace-of-Mind with Prepaid Debit
Did you know carrying a prepaid debit card is actually safer than carrying cash? It is! If you’ve ever misplaced your money, lost it or had it stolen, you know that once it’s gone, it’s gone for good. But with a prepaid debit card, if that ever happens, you can just call or stop by for a replacement card.
South Suburban Currency Exchanges Offers Prepaid Debit At Your Convenience
When you’re ready to make the switch from hefty interest rates and fees to a simple, secure way to keep track of your money, stop by your nearest South Suburban Currency Exchanges. We have several locations with extended hours for your convenience. Find your nearest location.
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