Although Debit cards aren’t designed for borrowing, you can still get into debt using one. This can happen if you pay for something when there isn’t enough money in your account, this means you’ll go overdrawn. At this point, fees and charges can be added.
Overdraft charges and overdraft interest can quickly add up if you don’t keep a close eye on them and make a payment to cover them. In some cases, even if your debit card payment is declined, you can still be charged a fee that takes you into your overdraft – and be in debt before you know it.
This can then have a negative impact on your credit score and cause consequences for you in the future.
How to handle debit card debt
▪️Keep an eye on your account
It’s important to check your account regularly before you make purchases or withdraw money. This will help you to avoid spending money that you don’t have and it will help you keep track of the money you have left to spend.
▪️ Track your spending
Doing this will help you avoid a low balance and reduce the risk of going into overdraft
▪️Set a budget
Setting yourself a weekly spending budget is one of the best ways to control your finances. This will also help you become more knowledgable on where your money goes and it may highlight certain things that you can cut down on.
▪️ Book a free debt consultation
When you book a debt consultation with us, our expert money advisors will listen to your personal financial situation and help you choose the best debt solution plan for you. All of our advice is free of charge, impartial, and 100% confidential.