Contract Worker - Freelancing Experiences

Why Debit Cards Could be Perfect for Freelancers and Credit Card Addicts

by Rico on October 23rd, 2007

As for anyone else, credit cards can be a great asset for freelancers. It lets them purchase much needed equipment and supplies, and pay for any other important expenses without having to carry large sums around.

On the other hand, again as for anyone else, credit cards could turn out to be a liability. Despite credit limits (or perhaps because of them), the owner of a credit card may spend like there’s no tomorrow, and run up huge bills that will limit his financial versatility.

This is why debit cards can be great for freelancers who suffer from poor financial management. A debit card won’t eliminate the tendency to spend beyond means, but it still makes that scenario less likely. It comes with the convenience of paying with plastic, while making sure that the owner won’t spend more money than he has, since a debit card is tied to his bank account; if there’s no money in the account, he won’t be able to buy anything.

Of course, it’s quite possible that a debit card user will drain the bank account and leave himself with no money. But it’s also quite possible to maintain two bank accounts, transferring money from the main account to the debit card as the need arises. This process also keeps the freelancer aware of how much he has left, meaning he can abort transfers if he’s low on funds

In short, a debit card can be convenient as a credit card, but allows certain controls that make sure you won’t fall into the feast-famine spending pattern.

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POSTED IN: Freelance Finances