Everyone wants to live a good lifestyle. But living a good lifestyle does have to be synonymous with living beyond your means. Even people with high incomes can make bad choices, which can see them winding up with out of control debt and a bad credit rating. Sometimes once you have got on the path to spiralling debt, it is not only a hard to escape, but also hard to recover. Until you have dug yourself out of debt and started improving your financial situation, it can feel as if you have lost control. Here are some valuable tips to help find your way back to banking independence.
Don’t ditch the plastic
Just because you have a bad credit rating, doesn’t mean you have to give up your plastic. There are various options available that will allow you to keep your cards and also your control.
The first thing to do is open no credit check bank account. Usually bank accounts for those with bad credit are online companies that specialise in decentralised banking services. These companies are not affiliated with banking institutions and therefore don’t carry out the same checks or use the same systems.
They will accept most applications for an account as long the candidate is over 18 years of age and can provide an address. Because the online banking companies only operate your account using your money, there is no facility for credit and therefore no facility for incurring debt.
Once you have signed up to an online account you will receive a prepaid card which is your ticket to financial freedom and opportunity to redeem your financial reputation. A widely accepted prepaid card will enable you to maintain certain authority over your finances. You will be able to purchase goods and services online and pay bills online where cards are essential. You will be able to make purchases over the phone, again where cards are required. A prepaid card will mean you don’t have to carry cash around or pay your bills in person. Just because you have mismanaged money in the past doesn’t mean you will keep making the same mistakes. Pre paid cards can be the key to developing a responsible attitude towards managing and spending your money.
Don’t give yourself credit
Because a prepaid is simply instant access to your own money, it can help fight impulse buying and the ‘buy now, pay later’ attitude that is often associated with credit cards. Knowing that a credit card and the interest that often goes with it can be paid off later, means that you’re less likely to keep track of what you spend. However, if you’re armed with a prepaid card and up to the minute information about your funds, it means that you can keep track of your expenditure and stay in control.
In the wrong hands, credit has the potential to fuel an extravagant lifestyle that may land the user into financial trouble. Prepaid cards on the other hand are more restrictive because you will only spend up to the value of your account balance and is therefore a more effective tool to manage spending. A prepaid card provides the same benefits of convenience as a credit card while putting restrictions on the holder. Prepaid plastic is perfect for those looking to cultivate financial discipline and banking independence.
Debt and bill management
If the money is there, account holders can withdraw up to £500 every day using their prepaid card. This makes it ideal for individuals and small enterprises facing debt and credit risk. With the larger, reputable online banking companies there are no hidden charges or penalty fees. This ensures that you do not get any surprises by finding that your balance is lower than you expected.
To help ensure prompt bill payment, online accounts have a facility to set up automatic transfers and standing orders towards payment of fixed bills and services. Using this method you can avoid missing any payments and get a feel for what your important expenses are each month.
Instant access to money
With an online account and access to a widely accepted prepaid card like Visa, you can instantly withdraw any money deposited without having to wait for the system to update. Access like this makes the user feel as if they have financial independence. This makes it ideal when making urgent payments. The card is accepted in all Visa branded ATMs and POS which means you can use it almost anywhere in the world.
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By William Masters – British reporter Masters has established himself as an in-demand journalist for topics of international economics and personal finance. For his research he frequently tests new financial products and services. He recently tested and approved the ‘eccount‘ (a guaranteed acceptance online bank account) by financial service provider eccount money.