Back in the late 80s and early 90s I used to be the proud owner of three credit cards - a Visa card, MasterCard and a Gold Amex card. And oh boy, was I proud of that!

Looking back, I don't know what I was so proud of, as I ended up with over $15,000 in debt due to those cards - or should I say my MISUSE of those cards.

When I finally climbed out of that debt trap, I swore never to take up a credit card offer again. And I haven't!

I can imagine you asking, "How do you manage without a credit card?". The answer is, "Very well thanks!". And I manage in two ways.

First, I've swore off debt, and it feels great. No more minimum monthly payments, no more black hole into which I must put large chunks of my monthly income.

Second, I can gain all the advantages of having a Visa credit card by using a Visa DEBIT card (or MasterCard debit card). Yes, there are many occasions when you want the convenience of credit card functionality - like when checking into a hotel, or making an online or mail-order purchase. In situations like that, a simple ATM card doesn't really cut it.

A debit Visa or MasterCard works just like a credit card, except the money you are spending is yours - not the bank's. So there is no money to be paid back at the end of the month.

There are two types of debit card. One is linked directly to your current bank account, so when you use the card your bank account is debited immediately - like with an ATM card. And there are stand-alone cards, where you fund them separately in the first instance, then draw down on your available balance.

Currently I have two Visa debit cards, with an international British-based bank. These are indispensable for me.

A pre-funded Visa or MasterCard is becoming increasingly popular, although still pretty hard to get if you live outside the USA. There they are quite common, as a means of getting cards to the "unbankable", and for facilitating card-to-card transfers for the many immigrants who want to transfer money to the family back home. For such people, all they need to do is send one of these cards to their family member, then move funds on to it from their own card from time to time.

These pre-funded type of debit cards are also increasingly popular as payment methods for business, as in network marketing companies or any large organisation which wants to disburse funds easily to its members.

Stepping down from the Visa or MasterCard branded cards, you can easily get hold of a bank-issued ATM card, or simple money card.

I have one of these also - with another international bank. And, like a Visa or MasterCard, they are invaluable tools for everyday money use. With such a card I can draw cash from an ATM machine virtually anywhere in the world.

If you've been reading my reports for a while, you'll know that I've spent a bit of time in China. Well, when I first arrived for my extended stay, I have to say I was a bit concerned about how I would access my money - as most Chinese banks are not "linked" to the international banking system via Visa or MasterCard.

However, I needn't have worried. Just a quick search on Google, to find an international ATM locator, got me the info I required. I found out that all branches of The Bank of China have Visa, MasterCard and Cirrus capable ATMs. So, even in this "communist" country, I can access my capitalist cash!

Many ATM cards can be funded by various methods, including some of the e-currencies available on the net. This is made possible by the function of third parties, who set up business as exchange merchants - converting one set "money" for another. It doesn't take too much searching to find cards which you can fund with e-gold, for example, and effectively draw your e-gold out of a hole in the wall.

There is a third type of card to hit the market - that's the virtual Visa or MasterCard debit card. These allow you to make online purchases and mail-order purchases, by issuing you a card number, expiry day and three digit verification code (as is found on the back of cards). With this information, you can easily make use of the card for all purposes where a physical card is not needed.

A word of warning. Perhaps the most desirable card is a prepaid Visa or MasterCard - which gives you all the functionality of a normal "credit" card and ATM card. However, like I said, these are not readily available outside the USA. And the ones that are may be in violation of Visa and MasterCard's international marketing agreements.

You see, both Visa and MasterCard set up their cards with partner banks in different countries - on the basis and understanding that such cards cannot be sold outside that particular region.

The exception is the debit card designed as a payroll card, or affiliated membership card. There are cards that can be purchased for this purpose, but they are NOT supposed to be sold "retail".

So, if you are being offered an "international" Visa or MasterCard debit card, chances are it has been issued for use as a payroll/membership card, and if it's being openly retailed on the net, the providers could find themselves in trouble with the card issuers, and have any agreement terminated. That would obviously impact on you, as your card would be similarly terminated.

This is the reason many card programmes have failed over the years, as they were in violation of Visa and MasterCard's marketing guidelines.

It would appear that the safest and surest way to get a card of this nature is if it is issued to you as a payroll card by an employer, or issued to you as part of your membership to some organisation. That would indicate the card has been purchased in bulk and resold/reissued in accordance with the required guidelines.

As a "freedom tool" the debit Visa/MasterCard is ideal - even more so if you can get various funding options. Many of these cards are now issued with no name on. However, don't get the impression they are "anonymous", because they are not. To activate such a card, you will still need to provide some sort of ID, as well as the usual information. However, not having a name on the card, and having it issued by a bank outside your home country does go some way to protecting your financial privacy, as it's unlikely that any enforcement agency would have a strong enough case to demand client information from the issuing bank. But don't hold your breath - anything is possible when it comes to the voracious state!

Take my advice. Cut up your CREDIT card, and replace it with a DEBIT card. You'll sleep easier at night - and increase your practical freedom.