I know credit cards and not your debit card got you into debt, but your debit card CAN hinder you from getting out of debt. I’ve said it before and I’m going to say it again – CASH is a sure fire way to keep your budget in check. We’ve talked extensively about the envelope budget system, are you willing to give it a try?
So what exactly is the difference between using a cash instead of your debit card? It all comes from the same account after all right? Yes but the difference is the ease of spending it. Using your debit card to pay is similar in many ways to a credit card – it’s quick and painless. That is of course until you check your bank statement and see the $100′s worth of small charges that add up all too quickly. If you’ve pulled cash out and set to use cash only you’re predetermining just how much you’ll spend, when it’s gone it’s gone. It’s also much more painful to drop cash than it is to swipe your debit card.
Could you live with a frozen debit card for just a one week? Anyone willing to take on the challenge?