If the recession has taught people anything it has taught them that it better to keep their debts in check regardless of their income should the worst occur and you suddenly lose all or part of that income. However, most people still like the convenience of carrying plastic rather than paper when it comes to money believing that it safer to have a card to pay off your purchases rather than actual cash that is easily stolen. However, if you are going to pay for those purchases with plastic then choosing to use a debit card rather than a credit card can offer you some great advantages.
Probably the most important benefit of using a debit card over a credit card, according to Aleris D., is the fact that it is impossible to overcharge on a debit card. Since the money has to already be on your debit card before you spend it once your money is gone so is the cards usefulness until it is refilled. This makes it easier to stay within your budget and limit those unnecessary impulse buys as you can’t carry over any credit for a month or more. Debit cards are a great way to keep you out of debt.
You also are not going to have to pay interest on your debit card. While some places who issue these cards may charge you a small fee, is in nothing compared to the annual fees on a lot of credit cards and never have to worry about that interest on the unpaid balance adding up because you never have an unpaid balance when using a debit card.
Some people cling to using a credit card siting money back rewards as their reasoning. However, many debit cards also offer reward programs and some of these are money back rewards as well. Of course you are going to have to read the fine print, but if you know what you are doing and clearly understand the terms these money back debit cards may mean that you actually end up with money in your pocket rather than simply getting money back to apply on interest from those unpaid balances.
Most importantly debit cards can keep you out of debt. Like money when you use a debit card you pay as you go, which is the number one reason more and more people are choosing debit over credit cards these days. With rumors of double dip recession on the horizon no one wants to be caught with a huge credit card debt to pay off and a debit card can help you stay debt free should the worst happen.
It is a different world we live in these days and that means everyone has to do their best to spend a little smarter and live within their budgets on a daily basis. Debit cards give you the convenience of using plastic without the risk of falling into credit card debt. They really are the ideal solution for getting by and making purchases in this all too shaky economy.