en using plastic cards as money versus actual cash. The question is, do any of these credit and debit card users know the difference between the two?
Some people think that having a debit or credit card is an unlimited source of money with little consequences. This is not the case however.
Debit cards are a plastic version of one’s hard earned money all in one place. As you charge this card the money spent is taken directly out of your bank account, which can be very dangerous if your PIN or account numbers fall into the wrong hands.
Identity theft can be killer for the unsuspecting card holder. With your savings account directly connected to the card, one wrong price slip can cause you to lose everything in it.
Many people frivolously use the cards and don’t realize that they are quickly draining everything they have in their accounts. Making it harder to pay their bills, or gas, or any other important items that need to be taken care of before shopping is even thought of.
Credit cards are a different story altogether. Where debit cards act as your physical money, credit cards act as a loan.
Credit cards are meant for larger scale things that you should be able to pay for at the end of the month. Credit cards can have limits to how much you spend, however it’s up to the spender to determine whether or not they can pay off their card each month.
Credit cards can be a smart investment if you can learn to use it as lightly as possible.
The smart thing to do is get a debit card for the little things, as well as a credit card that you do not use unless it is absolutely necessary. There are two instances when a credit card is crucial. When it comes to traveling, many people tend to rent cars and hotel rooms. For this reason, it is smart to use credit cards to pay for them because the rental car companies and hotels like to do authorizations runs on your card to make sure you can pay for it. If you use your debit card, this can be disastrous when you go back to use it, and there is no money left, this credit card can serve as an IOU. Depending on which bank you are with, cashback could be given when a credit card is used for gas and groceries.
Debit cards are best used for small purchases such as food, beverages, or even small purchases at the mall.
Evaluate the amount of self-control when it comes to money-spending, then decide which piece of plastic best fits your needs.
