Change the way you live with credit

[Mindy]

How many times are you faced with no cash but a credit card in your pocket, then you get that shock at the end of the month when the bill arrives. Why not improve your budgeting with a prepaid debit card. You load these up like you would a mobile pay as you go phone.

Many prefer the convienence of using plastic to cash, the two main options are debit cards and pre-paid cards – neither of which normally allow them access to credit.

Debit cards can be used in most places and on most websites where you would generally use a credit card – though not all. You will find more organisations accept debit cards bearing the Visa logo than those bearing the Maestro logo.

It is important to realise that when you use a debit card rather than a credit card, you will not have the extra protection offered by the Consumer Credit Act which makes them "jointly and severally" liable if there is a problem with goods and services.

Although both Visa and Mastercard offer a dispute procedure for debit cards as well and issuers suggest it is available, staff are often not helpful when you try to use it.

In addition, if you are travelling abroad – particularly to America – you may find that pre-booking hotels or hiring a car will only be possible if you have a credit card.

Mr Gardner added: "Pre-paid cards will work as an alternative to a credit card for some people, especially as they do not allow customers to run up debts. These cards mean customers can keep their spending under control – but they come at a price with a potential raft of fees attached."

Pre-paid cards can be topped up in the same way as mobile phones. Most allow you to top up at Post Offices otherwise you can use facilities like PayPoint – available at 18,000 retailers – or Payzone which is available at 30,000 retailers.

Post Office top-up payments will not be available for use until the next working day. The vast majority of prepaid cards are branded Maestro which allows you access to 9 m retailers globally. However there will be places that do not accept them including a number of websites. If the card has the full Mastercard branding it can be used more widely. The Visa logo on a prepaid card allows it to be used in even more places around the world.

The main cards bearing the Visa logo are Lloyds TSB Travel Money Card and the Post Office Travel Money Card. You have to buy all prepaid cards and that can cost up to £10. The average charge is £8.76 and the cheapest is £5 for either PrePay Technologies or 360 Money Splash plastic.

[Mindy]

Ive just been reading an American blog talking about money saving ideas. It makes you realise how different life styles are UK. For instance one of the top tips is to stop paying for lawncare no one I know pays for lawncare some people have gardeners but thats not usually someone specifically that comes round every week to cut the grass. Another tip was to turn off the air conditioning again I dont know any home here that really needs aircon. The next tip I dont think that you would get away with in the UK the suggestion of when eating out to share a meal to save money.

Still I guess this is all good news for the Americans the excercise from cutting the grass , their houses like saunas and the half portions at least they will be healthier.

[Rabscuttle]

We have no air, our landscaper comes with the rent and we always pay for our own bill when we eat out... So I am like half an american...

[badzy]

Originally Posted by Mindy

Ive just been reading an American blog talking about money saving ideas. It makes you realise how different life styles are UK. For instance one of the top tips is to stop paying for lawncare no one I know pays for lawncare some people have gardeners but thats not usually someone specifically that comes round every week to cut the grass. Another tip was to turn off the air conditioning again I dont know any home here that really needs aircon. The next tip I dont think that you would get away with in the UK the suggestion of when eating out to share a meal to save money.

Still I guess this is all good news for the Americans the excercise from cutting the grass , their houses like saunas and the half portions at least they will be healthier.

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There are vast ways to earn money, yet, the opportunity still shrinks..and most of the time success really encompasses hard work

[EugenS]

I avoid debt by controlling my "impulse shopping" sprees. Whenever I reach for my card I stop and think for a second. It then goes away, if it's not something I really need.

[deanac24]

We paid off our credit cards with our income tax money. Then we cancelled them and cut them up. It is so much easier without credit card debt.

[EugenS]

On the other hand, they can be pretty handy when it comes to unexpected costs

[Mindy]

It can became a habit though

[Monica]

I use the credit card only if I really have to and already know that I can afford that piece I want to buy.

[EugenS]

I've read somewhere about two methods of controlling your credit card impulse shopping, one was to freeze the cards in ice. So when you want to use your card to buy something from the internet, you have to wait for the ice to melt, and while waiting, your impulse shopping dissapears. The other one was to never take your card with you when shopping, and keep only cash. It's psychologically proven that we're less inclined to spend money when we see it as physical objects. What do you think could that work?