Credit Cards And Debit Cards How To You Know Which To Use?
It has become quite common nowadays to hear news about how bad the country's economy is or markets being unstable and unprofitable
. The once lucrative property market has fallen as well and many citizens are in debt.
News about finance has recently been about the surge in people who are into debt compared to the last 5 years. Have many become just too reckless in spending. It has also become very convenient for anyone to purchase anything due to credit and debit cards. Each credit card differs in privileges. There are still some people who are still unconvinced which type of card they should get.
If you get familiar with the most important distinction between these two then it will become easier to choose which type of financial tool to sign up with depending on your budget and lifestyle.
Credit cards pros and cons.
It has become evident that you will see a range of credit card companies or banks promote their gifts and benefits when you sign up or continue spending using their credit cards. A quite popular rewards system is still being used by most credit card companies where you'll be able to get points through the purchases you make and get free items. The gifts are usually in the form of cash rebates, toys, appliances, electronics, airline tickets or even some of your cash back.
You will find quite a lot of people who keep using their credit card for their everyday purchases because it is convenient for them to pay without having to worry about the cash they have at the moment. If you have a credit card, this gives you an option to defer your payments and a choice whether you pay in the full amount or just the required minimum set by the credit card company. The remaining balance is charged with the ongoing interest if you wait and pay on your succeeding billing statements. Some use this system for loans.
There are some people who would say that using a credit card requires discipline. A responsible way is to use your credit card as if it were a debit card and only spend within your means. Another option would be to take a portion of the money you owe right away and keep it until you receive your billing statement. It can be a win-win situation for you where you spend without falling into debt and at the same time, getting the perks you through your cards reward system.
Debit cards fast and instant.
What really makes a debit card quite different? They may look the same because they have the same print and made from the same material however each works quite differently. A debit card is linked to your bank account and the moment you make a purchase, the money Is quickly deducted from your savings account. There are no billing statements to worry about like credit cards do. But you will find that debit cards do not have the same privileges as credit cards do.
It all just takes a little bit of effort in taking note of due dates so that you can enjoy the extra things you can get aside from your purchases.
If you do not want that hassle, then you ought to stick with a debit card.