06 May Using A Debit Card To Control Spending
Many of my clients ask me about ways to control spending after bankruptcy. For these people I recommend a debit card.
With a debit card you never need to worry about carrying around cash. If you carry cash then your money has a tendency to disappear. For example, you take out $20 from the ATM and go into a store, where you purchase $18.43 worth of groceries. The single dollar and change go into your pocket, and soon disappear as minor purchases are made. At the end of the day you’ve spent $20.
Turn the tables and make this a debit card purchase. Go into the store and spend $18.43 on groceries. Leave the store and go about your day. Chances are excellent that at the end of the day you will have spent $18.43, not $20. Why? Because the extra cash in the first scenario is too small for you to take note of. When you spend it, you don’t notice it – a pack of gum, a newspaper, maybe something to drink.
This runs counter to the tact taken by Debt Hater, who is giving up the use of a debit card in favor of cash. She’s going so in order to curb her “flex” spending, and I’ll be interested to see how this works out for her.
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