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Managing money is a constant challenge. When you operate as a family, unexpected expenses come up all the time. And when they do, most of us reach for our credit cards. But should we? Do we really need to pay all those fees? Remember if you can work on your credit score you can get better fees so this is always worth considering too. 

Close up calculator on white background
Close-up view of calculator on white background

It turns out that there are many alternatives to credit cards, some of which give you the same experience but without the cost! They do not always give you money quickly but they may be helpful. Check out the list below. 

Use PayPal For All Your Transactions

In the past, PayPal was a service that made it safe to buy things online. Consumers didn’t just want to hand over cash to people they didn’t know via the internet. They needed a guarantee that they wouldn’t lose their money. PayPal provided that function. 

Closeup of Mastercard and Visa credit cards

Now, though, the service has expanded its remit considerably. No longer is it just a service for people who want to buy things online. Instead, it is something you can use for all kinds of things, including restaurant visits, sending money to friends and family, and issuing business invoices. 

PayPal also offers credit card facilities. It allows you to take out credit through the service and spend money ahead of getting paid. 

Take Out A Mortgage With An Debit Card Facility

Mortgages are themselves a form of credit. Banks hand over a lump of money to allow you to purchase a property. You then pay them back over the following months and years out of your income. Bank reviews are a great way to look at your financial situation and find if this is right for you.

Some smart companies have realized that bundling debit card facilities with a mortgage is a great idea and much cheaper than using credit. 

A ZIP Home Loan, for example, comes with a debit card with a fixed limit. It works because the lender already has the collateral of the home. And because it is not an unsecured loan, it helps to reduce the rate of interest, sometimes to zero. 

Investigate Guarantor Loans

Sometimes you need money to finance something you need, like a car. Unfortunately, you don’t always have the cash in the bank, ready to go. Worse still, you might not have the right credit score to take out a regular loan. In this situation, what do you do?

The good news is that you can still get credit if you take out a guarantor loan. Here, somebody you know – usually a family member – takes on the risk. Essentially, they promise to repay the lender if you can’t. Often, going down this route allows you to access credit on favourable terms, but it is risky. If you don’t make all the payments, creditors could go after your guarantor, which could affect your relationship with them.

Use Your Overdraft Facilities

Overdraft facilities are essentially a form of credit you can use if you go over your budget for the month. Dipping into the facility allows you to keep paying bills, usually at a low cost. 

Speak with your bank about charges and fees on your overdraft facilities. Some financial institutions offer zero-percent overdrafts, allowing you to borrow money, essentially for free. How about that?

Do you talk to your partner about finances, if not you really should, having these conversations is so important.

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