Credit cards are very useful, but they are very expensive. There are many options for people who want the ease of a credit card but don't want to pay the high fees that come with it. Here are a few of them.
Debit Cards
Americans are crazy about debit cards. They are very useful, just like credit cards, but you don't have to pay high interest on them. Credit cards that use your bank account instead of an unsecured loan from the credit card company are called debit cards. Debit cards are very easy to use, can be used almost anywhere that accepts credit cards, and don't charge interest on purchases.
The great thing about debit cards is that they are linked to your checking account, which makes it easy to add money to them. Many credit cards come with online banking, which makes it easy to check your balance and move money from one account to another so you can put money in your checking account. Most debit cards are very cheap and don't cost anything to use at the point of sale. Some banks do charge a fee once a year or once a month, but these fees are usually low and much cheaper than high credit card interest fees.
Paypal is used to buy things online.
If you shop online, you might want to look into other ways to pay, like PayPal, instead of using a credit card. Paypal is very safe, and you can pay for things online with your bank account or even a debit card. Instead of giving a merchant your credit card number, you can store information about your bank account or debit card on Paypal's network. Paypal pays the merchant directly, so you don't have to give your bank or credit card information to merchants you don't know. Users don't have to pay to use Paypal either.
Present Cards
You can also pay for things with gift cards instead of a credit card. In fact, Visa and American Express both have gift cards that can be used almost anywhere that normally takes these credit cards. These prepaid gift cards work because you put a certain amount of money on them before you use them. So, you won't have to pay interest fees in the future. Most people give gift cards as holiday gifts, but many parents now use them to teach their kids how to use credit cards wisely.
With so many other options, you can get rid of your high-interest credit cards and the debt they can cause.
