1. Always keep 2 checking accounts with a visa/mastercard debit card for each. One account for spending and one for bills.
This not only helps with budgeting in the BKF zero debt program but it also helps tremendously in the fight against fraudulent transactions as your spending account, traditionally with far less money in it than your bills account, is the only account you expose to risky situations.
Names of recommended checking accounts for this can be found here –>> https://thisiswhyubroke.wordpress.com/…
Remember, this is a no credit card program – cut those debt traps up.
2. Always use the “credit” option at check out over “debit”. Though card terminals have yet to change the options shown on screen to the correctly titled “signature or debit” or “signature or pin”, choosing the falsely titled “credit” option will continue to be your best option.
By avoiding the store’s push to confuse you and get you to input your pin number, you will be provided the same “protections” as credit card users when it comes to chargebacks, fraud and insurance on purchases, but without the next 15 years of your life paying off debt.
3. If you have any checking account with “overdraft protection” linked to it, and you’re comfortable with that, I need you to withdraw all of your money and light a torch to it now. Save us both some time.
If you’re smart enough to now know the stupidity behind keeping your account connected with this type of corporate fraud, I need you to call your bank and remove overdraft pro-theft-tion now.
While the annual percentage rate on a payday loan is typically 400%-500%, the APR on the average overdraft equates to 3,500%.
I don’t care what you believe you will never do. This is about risk vs reward. Don’t be dumb.
4. Never ever use your pin # at a gas station. –>> http://gizmodo.com/gas-pump-skimmers-are-now-just-as-good-a…
As a matter of fact entering in your pin number should generally be avoided at all cost. The only places you should use your card’s pin # are at your own bank’s ATM or at your own bank’s teller window. And be careful even with that.
If you go to Costco once a month, use cash. If you go to Costco more than once a month, use condoms.
5. Be wary of using cold hard cash in general. You can not place a “stop payment” on a stolen $100 bill. No matter how much you tell yourself you are, you are not going to stop and write down each transaction on a napkin or app after you make them so you can keep track and see how you are performing against your budget. Because you’re not tracking your spending, you will run out of cash repeatedly and dip into bill money to pay for lunches at work.
Use an online application like www.Mint.com to track expenses from both your bills account and your spending in real time.
Remember – 2 checking accounts: one for bills and one for spending. Order a visa or mastercard debit card for each.
Neither Visa or Mastercard are credit card companies but rather businesses that own payment processing networks that can connect to any bank issuing a card. Neither of these companies hold consumer debt.