Earlier in time, opening a bank account was just about opening an account for the salary to be credited or for saving money away from yourself to avoid unnecessary expenses. Back in the day transactions used to happen on cash for goods or services. Then came the debit cards which gradually gave popularity to credit cards. Credit cards very soon picked up hype and created the chain of credits that runs economies and helps people pay without thinking about immediate sources to give the money back to the authorities. Credit cards are easy to use but then the ability to be paying the bills keeps us from putting all our payments on the credit card. So the use of debit cards to make payments from the money you have in your bank account can be a better habit. It lets you keep your expenses in check and you don’t have to worry about settling a bill for credit you have taken from the bank. But sometimes due to the habit of using credit cards some of the reckless behaviors also turns to your debit card. So to keep the spending habits check will save you some expenses that you deliberately make on the encouragement of banks and their intriguing offers.
Realize Your Unhealthy Habits
There are not a lot of us who are canny about our expenses and managing money and it is not a wrong lifestyle to spend on yourself to be happy. But if you just take a few seconds to think before taking some steps, you will have a better stash of money to spend on yourself. If you know that you have an open hand for expenditure, then you must avoid the use of debit card whenever possible. Stop making small payments on things like food or small groceries. Use cash for everyday transactions if possible. Making use of debit cards on every small payment makes you vulnerable to overdraft charges and you might even forget about the limited balance in your account.
Regularly Note Your Card transactions
Keep a check on all the transactions that you make. If you’re using the ATM preserve all the bills that you receive and note the amount that you have in your bank account. When making payments online through the debit card, keep a screenshot of the transaction complete page. You won’t have to worry about that if you’ve subscribed to the bank’s phone alerts. If you have a joint account have a check on both the cards at the end of each day and cooperate on lesser use of the debit card. You can also make a routine of using cash for each of you on alternate days.
Repeal Overdraft Issues
Banks provide overdraft features on their debit cards to make the clients use the debit card for all transactions in the same way they have been using credit cards. But banks are yet to be so transparent to make the same rules for both and credit cards. Banks provide offers along with the overdrafts such as making the maintenance fee negligible or lowering down the minimum balance retention. Overdrafting might solve your problems in times of urgency, but this feature very soon takes hold and the ability to spend keeps us going towards a huge pile of overdraft charges and debts. Don’t opt-in for the overdrafting option unless you know that you can manage the spending once your balance has reached zero so that you don’t accumulate overdraft charges. This could result in your debit card being more expensive than your credit card.
Rethink Before Letting them ‘Hold’
A hold on the debit card means that the merchant at which you’re making a payment may hold funds on your card before you can complete buying services or commodities and pay the final amount. Holding funds is prevalent in the hospitality sector and at roadside merchants with gas and retail shop. When you make payments to a hotel through your debit card, the hotel management may keep the funds in your card on hold. It means that you cannot use those funds or withdraw them before you have checked out of the hotel and the real total amount of your stay has been paid. The holding back of funds is done to secure the bill for the total amount of things bought when the total bill is not acquired. This could put you in trouble on a bad day. The money that the merchants holdback can be held back for as long as a month. So it is possible that you pay to hotels through your debit card and it gets rejected on the restaurant counter because the rest of your money is on hold. To prevent this use your credit card or cash at these merchants.
Remove Access to Excess Cash
Maintaining a separate low balance account can help you control the impulse purchases. This is a kind of self-development where you set out money from your salary to keep it safe from being spent unreasonably for things that caught your eyes for a moment. In order to do so, you must be reasonable and transfer your funds from the debit card account to a savings account so you can have secure money for your time in need. Credit cards make us habituated to spending without thinking that the large amount is not provided for free plus you have to pay overdue fees. Debit cards make us feel the same when the salary hits the account and we start spending without care. It is safe to have an account where you allocate a portion of your money every month and try not going to the position where you have to use it.
Going cashless may just help you be freer from the responsibilities but then the use of credit and debit cards makes us believe that we can spend when we’re just using up all the money that could be saved away and multiplied to get a comfortable future, rather than a mediocre present.
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