Many people use credit cards as an easy way to manage the household budget. They buy food, pay utilities, and handle a host of everyday expenses by using the cards, then settle the balance as soon as the monthly statement arrives. With some cards, the cash back option makes the use of the cards even more practical.
But what does one do when the credit limit is suddenly reduces, sometimes drastically? Unfortunately, many consumers, even those who make payments faithfully and on time, are facing this very issue.
The answer is that if using the cards is no longer affording the convenience that it once did, rethink the way you manage to cover household expenses. There are actually a couple of ways to go about this process.
First, look into using a prepaid credit card, like a Bread Card.. You set the limit you need, based on the amount of funds you deposit. There are never any worries about late payments or other such issues, since you only have to reload the card when it is time for another round of bill paying.
Next, do without the cards altogether and pay cash. While decidedly low tech, this approach is still quite effective. You may even find a few merchants that offer slight discounts to customers who pay cash, since they are not incurring a fee to process a credit card payment.
In order to make this transition, you may have a rather tight month or two. If you can arrange your finances to get by on less for that month, then you will soon find there is enough money on hand to meet expenses as they appear, thus eliminating the need to use your credit card for day to day purchases. This will allow you to set aside that credit card and its lower credit limit for emergencies, and still enjoy a decent standard of living.
Tags: Bread, Credit Cards
