These 3 Bills Should Never Go on a Debit Card · Madam Money®
Debit Card best practices: Avoid these 3 essential expensesFinancial literacy is key to managing your money effectively. As an award-winning speaker, Madam Money (Tarra Jackson) emphasizes empowering her audience to understand and manage their finances confidently. In this article, we’ll explore three essential expenses that should never be on a debit card.
### 1. Credit Card Fees
One of the most common mistakes people make with their debit cards is using them to pay credit card fees. Let’s face it: when you’re charged a fee for using your credit card, it’s essentially free because you’re using another card. Why not use your own debit card instead? Paying this fee via debit takes away money from your account without any benefit.
For example, if you have an annual fee on your debit card, you’ll pay that every year. But if you use a credit card for those fees, you lose the flexibility of having that balance in your account—something you might need later. Always be cautious and ensure that paying such fees via your debit card isn’t costing you unnecessary money.
Instead, consider setting up direct debits to cover recurring expenses like utilities or groceries. This way, you save on both credit card fees and avoid the risk of overspending.
### 2. Student Loan Payments
Another expense that shouldn’t be on a debit card is any kind of student loan payment. Student loans often come with interest rates, which can make paying them off seem like a burden. Using your debit card to cover these monthly payments adds unnecessary stress and could lead to financial strain.
If possible, pay your student loan in full each month to avoid being charged interest. Alternatively, consider using an automatic transfer from your savings account or checking account to simplify the process and ensure you’re not unintentionally increasing debt.
### 3. High-Interest Loans
Paying off high-interest loans is another expense that shouldn’t be on a debit card. These loans are designed to earn extra money for lenders, often through compounding interest rates. Using your debit card to pay back these loans means you’re paying more than necessary without any savings or benefits.
Instead of using your debit card for such purchases, consider setting up direct debits for essential expenses like rent or car payments. This practice saves you from the trap of paying high-interest fees and keeps your finances in order.
### Conclusion
Using a debit card wisely can save you money and stress. Avoid paying credit card fees, student loan payments, and high-interest loans via your debit card. Instead, consider setting up automatic transfers for these expenses to avoid unnecessary costs. By adopting these practices, you’ll have more control over your finances and make smarter decisions about where and how you spend your money.
For more tips on managing your finances responsibly, visit Madam Money’s website or follow her for the latest insights into personal finance management. Remember, financial literacy is key to building a secure future—so keep educating yourself and stay empowered!
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