While shopping at the stores or online, we don’t think twice, which card we should use – debit or credit. We quickly take out our credit card and use it. Our lives have become so dependent on the plastic money that we use it even for small purchases, despite the fact that we have enough of money available in our account and the debit card is sufficient. We agree that there are various places where usage of a credit card is better and safe, but using it everywhere is not a smart idea. Too much use of credit cards always results in financial woes.
We present top reasons for using a debit card instead of a credit card:
1. To Avoid Further Credit Card Debt
Debt is one of the most common side effects of the plastic card usage. Your missed credit payments accumulate a lot of debt. Then, you take loans to clear your card debt, but again, you are under the loan debt. Bank or card companies want their customers to buy everything through the plastic money so that you end up paying high interest and they earn good revenue. This is the right time to switch otherwise you will be too late to handle your financial problems. Let your ATM do most of the purchases!
2. Avoid Unnecessary Charges or Taxes
Some merchants give a minimum purchase limit to the customers for accepting a credit card or ask for some extra charges. Actually, they need to pay card machine rentals or charges to the card issuer bank/company. Even various sites ask for taxes when you use a credit card. However, they waive off the asked charges/taxes if you use your ATM card. Hence, by using your debit card you can save money.
3. Earn Reward Points on your Debit Card
It is not only the credit card that allows you to earn reward points and redeem. Your debit card also lets you earn good incentive points that you can redeem as per the bank policy. Many stores give extra discounts if you pay by cash or debit card. Hence, you can earn reward points and avoid debt side by side.
4. A Debit Card is Quick and No Delay in Payment
Sometimes, when you use a credit card for giving any payment online, a message comes “subject to clearance”. Actually, there is a floating period, which is usually about 24 hours for crediting money into the payee account. However, in the case of the debit card usage, the amount goes instantly to the payee account and hence there is no confusion or delay period. Save your time now by using a debit card.
5. Control your Spending
If you really want to see your monthly budget successful, then you should keep a balance between the usage of your credit card and debit card. The usage of the plastic money always results in overspending and the monthly budget gets disturbed. You should use your debit card for paying all utility bills and small purchases. High-value transactions can be paid through a credit card and the same can be converted into EMIs.
The Bottom Line
A credit card is really good only if you can easily pay its monthly bill on time. However, there is always a fear of the card debt. Also, your credit rating is at risk if you miss or default a card payment. On the other hand, the debit card usage is convenient and you don’t have to worry about the debt at all!