The majority of Americans need help paying off more than $10,000 in credit card debt. Be committed to helping resolve your student loan and other debt problems. After your situation is resolved, your credit cards can be cut up and forgotten. However, you may still need to make some purchases on credit. Here is another way to save money and pay down your student loans (before you consider bankruptcy):
As an alternative to traditional credit cards, a reloadable credit card can be used instead. Reloadable credit cards are an easy way to ensure that you don’t spend too much money. With reloadable credit cards, you transfer money from your checking account using a secure web site. You can manage your finances by limiting the amount and number of transfers each month and then by checking the balance on the account each day. Limit the amount of the transfer to only what you think you’re going to need.
The transfer usually takes 3 to 5 business days (Monday through Friday) for the money to go through. Those 3 to 5 business days require that you plan your expenses because, if you haven’t transferred enough, you will have to make another transfer and wait another 3 to 5 business days. This limitation forces you to carefully plan your expenditures.
If you want to travel and use a prepaid, reloadable credit card you will have to be sure that a hotel or rental car location will accept a prepaid, reloadable card. Oftentimes, an additional charge is made to the card as a security deposit, or you will have to provide a cash deposit. But, by using a prepaid, reloadable credit card instead of a credit card, you will be required to carefully plan your trip and how much you are going to spend.
Get a free credit report before you get a reloadable credit card. Cancelling a credit card can make the entire amount due and can adversely affect your credit rating. More information on these topics will be provided in the future.