Credit card perks are great. From no foreign transaction fees to cash back, there are many benefits of using a credit card that a debit card can't provide. But along with the perks, there are also some pitfalls… like if you don't track your spending and end up swiping way more than you should. If you can't pay your balance off each month, interest rates can quickly dub any credit card perks worthless. That's why we were so excited to discover Debitize*.
Debitize is a free money tool that stops you from overspending by linking your credit card to your checking account. Every time you make a purchase on your credit card, Debitize automatically deducts that amount from your checking and deposits it into your Debitize Reserve Account.
At the end of the month, Debitize automatically pays your credit card bill with that reserve money. You no longer have to worry about not having enough money to pay off your credit card bill each month, because it's already securely set aside.
Debitize is free to use* and helps you stay on a budget so that you don't fall victim to credit card debt (and pay your life away in interest). Here you'll learn more about this awesome money tool and get our full Debitize review.
Debitize Review: How it Works Step-by-Step
Signing up for Debitize is pretty simple.
Step 1. Create an account.
Step 2. Link your credit card and checking accounts.
Link your credit card(s) to your checking account.
Step 3. Activate your account by verifying your information and choosing how you want Debitize to help you.
Do you want to pay off your balance in full each month? Never let the balance of your checking account fall below a certain amount? You can personalize Debitize to work for you in the ways you want.
Step 4. Use your credit card as normal and monitor your transactions, account balances, and credit card payments through Debitize.
Transactions made on your credit card as seen through Debitize.
Your account balances (including your Debitize Reserve Account).
Confirmation of the credit card bills Debitize has paid.
How Debitize Benefits Credit Card Users
You may be wondering if Debitize is right for you. Well, it's certainly not for everyone. If you don't have any credit card debt or have no problem paying your card(s) off in full each month, then you probably don't see any reason to use this tool.
Debitize is most beneficial:
- if you have credit card debt
- if you struggle to pay your credit card in full each month (carry a balance)
- occasionally forget to pay your card and make late payments.
If you have credit card debt: Debitize can help you pay off your credit card debt by automatically deducting money from your checking account each month. As you're probably already aware, making the minimum payment on your credit card balance is not making a dent in that debt! Debitize can help you prioritize paying off your credit card by keeping you accountable with an automatic monthly transfer.
If you struggle to pay off your credit card in full each month: You already know carrying a balance = interest, but some months you overspend and just can't pay off your credit card in full. Debitize stops you from overspending by automatically deducting the amount you spend on your credit card from your checking account. With alerts that let you know when your checking account has reached a certain balance, you can put yourself on a “spending freeze” and stop while you're ahead.
If you occasionally make a late payment: Things happen, we get distracted, and we're all guilty of leaving our credit card at the bar one night or paying a bill late one month. The thing is that while that left-behind credit card situation can be scary, it is usually resolved the next day with little to no consequence. On the other hand, making a late payment is an honest mistake that can cost you money (late fees are expensive!) and lower your credit score. Payment history makes up 35% of your credit score and one late payment can lower your score for up to seven years!
Debitize Review: Keep Your Credit Card Perks + Ditch Credit Card Debt
In a nutshell, Debitize is pretty awesome. It's a free stand-alone money tool that easily links with your existing credit cards and bank accounts. In addition to its main function of helping you avoid credit card debt, it is also a great resource if you're working to eliminate existing credit card debt.
The biggest positive of using Debitize is that you continue to earn the perks of your credit card (no foreign transaction fees, cash back, etc.) but can do so worry free. Having a credit line that is way above your means can lead to temptation and overspending. We love the concept of combining the perks of your credit cards with the limitations (and reality) of your checking account.
We should also add that Debitize is safe, because that is always a concern with any type of online banking or money app. To ensure your data is completely protected, Debitize does not store your information on their servers. All your data is directly transferred to Plaid, the same company Venmo, Betterment, and we use for our Wealth Coaching clients. You can feel confident that you are getting bank-level security when using Debitize.
Your Debitize Reserve Account is also at your disposal and completely flexible. While never needing to access that money is the goal, life happens and we appreciate that the Debitize Reserve Account functions similarly to any other FDIC-insured bank account. In other words, if you need to “take back” some of that money you were going to put towards your credit cards purchases, that's not a problem.
Sign up for Debitize if you're ready to keep your credit card perks and ditch credit card debt for good.
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