Deficit spending is when your spending is greater than your income. It is easy to spot. If you are in a deficit or have debt, then you are deficit spending. Credit cards make it easy to start to start deficit spending. A small purchase here, another over there and before you know it…yep, you are in a hole.
The question is how to avoid deficit spending when everyone uses credit cards. And in today’s online environment where credit cards are almost required.
The answer is to use cash. when the cash is gone, you stop spending. Simple right? Not so easy when it comes to online shopping because you cannot just send cash in. you have to use a credit card…or do you?
For online shopping the solution to avoid deficit spending is prepaid gift cards with a fixed limit. This is similar to cash. For example, If you take $100 cash to the store wouldn’t that be the same using $100 gift card at an online retailer?
Give it a try. Gift cards are easy to purchase.