The temptation of credit cards has been discussed at length in recent years. It has led to many households in the USA having several thousand dollars of debt on which they are paying a high rate of interest each month. Those who merely use a credit card for convenience and then pay off the full statement amount at the end of the month, credit cards are a great idea. There are even reward programs whereby users are rewarded for using their cards. More temptation it might be, but as long as a card is only used on what is affordable, there are no problems. Unfortunately, too many Americans appear to have fallen to the temptation, thankfully Interstate Associates provides great resources to help you get your finances back in order.

Those people who use debit cards instead are effectively paying immediately. A transaction on a debit card sees the full amount taken out of the corresponding bank account immediately. There needs to be sufficient in the account or the transaction will not be processed. There are little promotional benefits in a debit card so a financial product that combines the best of the two types of cards has obvious appeal.

Credit Card Benefits

The rewards that credit cards offer is an immediate benefit; there are others:

• Cash Back is available purely on credit cards – anything up to 5% on specific items.
• Your credit score will improve if you use a credit card responsibly and can demonstrate that you have a good level of available credit that you are not utilizing. If you have ambitions to buy real estate a good credit score is very important.
• Credit cards usually provide purchase protection and often extend the warranty period on relevant items.
• You can also expect protection against loss, theft or fraud.
• Credit cards provide some elements of insurance; rental car coverage is a typical example.

Debitize

This new concept looks at the advantages of debit cards and the benefits of credit cards and combines them. It involves an account that links both to the owner’s bank account and their credit card. That account automatically takes money from the bank account in line with purchases on the debit card. The money is held before being used to pay off the month end statement in full.

If you have existing debt on your credit card you can also use the Debitize account to make additional payments to reduce your credit card balance on a periodic basis. You can check the activity on your Debitize Account at any time. If you have insufficient funds in your bank account then it cannot function. If your bank account falls below an agreed level, Debitize will not work so there is no chance of it taking too much money from your bank account.

You will still be able to use your credit card even after the Debitize function is no longer operating but you will need to be aware that you are building up additional debt.

It is important to regard money in your Debitize Account as already spent even though the Account is yours, and yours alone. Obviously potential security issues have been addressed by the use of encryption and no one can get into the loop between your bank account, your Debitize Account and your credit card.

Benefits

You will get all the benefits associated with your credit card, those described above as typical. Obviously if you use this ‘’loop’’ responsibly, it will help you to manage your finances properly. You will be encouraged to avoid extravagant spending of course and the ‘’loop’’ breaks if you do.

In the USA today, the average credit card debt of those users who regularly run a balance is in excess of $15,000 all of which has a high interest rate amount added at the end of each month. It surely is a sign that many are living beyond their means and are in need of help. One such product that can help, and which should instill self-discipline in consumers is Debitize. As time goes on, it is likely that it will develop further because there is an obvious need. Hopefully, those whose finances are in poor shape will understand that it is able to help them.  

Quick Fixes to do ASAP

It can take time to pull yourself out of trouble. A lot of people get into problems because they get laid off, have a medical emergency, or are otherwise forced into an unexpected credit card “hit.” It’s critical that you keep an eye on your score for any red flags. Sometimes credit bureaus make mistakes. If there’s a fishy “mark” on your credit, it’s very simple to dispute it. Make sure you check your score at least every six months to keep in tip top shape. You can also sign up for a variety of programs, some of which might be included with your credit card itself, to be notified of any changes to your score. This alerts you of potential security breaches or false marks such as a company querying your credit score more than once by mistake. Reaching out to Interstate Associates when you find yourself in a tough financial situation is always a great idea.

Debt consolidation

Another clever way of getting your debts under control is to use a debt consolidation service like Interstate Associates. They pay your debts for you, and you pay them a single monthly amount. This means you can have more money for you every month, you don’t need to worry about companies chasing yours for payment or late fees. So it makes the whole paying off process much less stressful.  Debt consolidation loans work well paying off bills with large interest rates, such as credit cards. It also makes repaying multiple long-term debts, such as student loans, more convenient. 

Advantages to a debt consolidation loan

• Lowered interest rates can save you tons of cash. Credit card debt typically has high interest rates, this can be lowered to where it is more on par with home equity loans.
• If you consolidate home loans into your debt consolidation, you may qualify to deduct the interest.
• Careful shopping could get you superior loan interest rates.