Credit Card vs Debit Cards

I’ve tried to tell you some easy ways to quit using your credit card and/or paying off your credit card debt, but now I want to compare the differences between a credit card and a debit card, and which is a better choice…What I like about both:

• Convenient
• Can be used for any types of purchases
• Give you ways to track your spending

What I like about credit cards:

• Your limit is higher, so in case of an emergency, you know you have the funds needed.

What I like about debit cards:

• You can only spend what you have in the account
• You can pull cash from your bank account even when they are closed

If you are trying to stay on a budget.  If you are trying to watch what you spend.  If you are trying to reduce your debt.  Then the debit card is your best choice.

You can only spend what is in your bank account and no more.  Which means you don’t pay interest on charges that you’ve made 3, 4 or 6 months ago, like you do with a credit card.

If you lose your debit card, you need to contact your bank ASAP (you usually only have about 1 week), so if someone else makes charges on your account, you won’t have to pay for those charges.  But if you don’t contact them, then you might be responsible for all charges.

If you know you can be trusted not to use the credit card, then you can have one for emergencies.  But you only need ONE…and if you use it, make sure you pay it off that month.