5 Reasons Why Debit Cards Are Better Than Credit Cards

By Debbie Robbyns

Debit cards have become a modern day necessity in recent years. Not having one in your wallet is like living in the in the past which was depicted in yesterdays commercial on the television. In one scene people were queuing up at the cashiers and moving on after paying. The scene then changes where everything stops, the sky turns grey and the sun sets. An old lady pulls out her check book and when she starts writing her check the surrounding changes into the 1980s. I have put together 5 reasons why you should have debit cards in cased you are still living in the past like the old lady in the advertisement.

1. Power to purchase. Imagine youre out and about when suddenly, you get hungry. You have no cash in your pocket and your bank is miles away. What do you do? Most restaurants accept debit cards these days, so pull in to your favorite fast food place, order up your meal and pay with that little piece of powerhouse plastic in your wallet. Actually, this applies to just about all businesses today. Grocers, hardware and other stores will take your debit payment on the spot.

2. No surprises as to where your money went. A debit card provides a detailed trail in your spending wake. You can always ask your bank where, when and what was bought at any time. For a fee, they will be glad to tell you, but if you wait until your statement comes, this info is FREE!

3. Debit card cuts down on unplanned purchases as you can only afford to buy as much as you have in your account. It helps control your spending habit because it deducts the amount directly from your account. Unlike credit card, you dont get to buy now, pay later which most of the time translates to buy now, regret later.

4. Prepaid debit cards are gaining in popularity. These do NOT require a bank account. They are like those PAYG (pay as you go) phone cards. You get a card and load it with money. When the money is all used, the card can no longer be used. Simple, isnt it? This is a very easy way for business owners to pay freelancers or vendors. Even payroll can be made with debit cards

5. Owning a debit card helps you to live within your means especially when you are the type of person that struggles to pay your credit card debt every month. With debit card, you only spend what you have. There are no major fees involved and certainly no interest repayments therefore your debt will not compound to a horrendous figure like what most credit cards do.

Debit cards are becoming a popular choice for most people nowadays due to its convenience of purchase. Before you run off to apply for a debit card, make sure you conduct a thorough research on the plethora of debit cards around. Different cards have their perks and letdowns so remember to always read the fine prints before signing on the dotted line.

About the Author:

Debbie Robbyns blogs in Personal Finance 2009. Drop by her website for practical and simple to pickup personal finance tips for your everyday lives.