How do you eliminate credit card debt? Stop using credit cards! Fans of Dave Ramsey know this to be true. Eventually, you have to pay for what you buy. Credit cards led to the destruction of our economy. Debit cards and Paypal are better options for those who participate in online commerce, but they still take significant amounts of money as part of the transaction.
Enter Dwolla. Dwolla is a brand new payment system that was designed from scratch to destroy credit cards. Instead of paying a fee plus a percentage on transactions (not to mention a minimum monthly maintenance fee), you pay just $0.25 for any transaction over $10.
- Creating your own Dwolla account is free.
- Transactions under $10 are free.
- Transactions over $10 are a flat $0.25.
- And there are no maintenance fees.
Dwolla is not as commonplace as credit cards (yet), but this small company is already moving $350 Million. With Dwolla, payments are made directly from your bank account. No credit or debit cards are allowed.
Dwolla’s advantage is not only in its low flat-fee transaction model. It’s also in Dwolla’s use of smart phones as a payment device to buy things at local stores and even order products online. I recently downloaded the Dwolla app for my smartphone. You can send money with an email address or with a phone number, but the most popular way to do it is to connect to Facebook and type in a friend’s name.