Using Debit Cards to Avoid Debt

Debit cards and credit cards share many attributes - they are easy to use, and accepted by many retail and commercial outlets. The crucial difference is that the funds spent on your debit card come directly from your own account, whereas credit card transactions incur a debt. A debit card is limited by the amount in your account, a credit card by the amount the card issuer is willing to lend to you.

You will be given some days to pay for your balance and they even let you pay only the minimum amount required if you can't pay the whole amount. Of course they will charge you extra for the interest if you fail to pay the whole amount. The remaining amount will then be carried or rolled on to your next statement plus your recent purchase and if you're not careful enough, you could even reach the credit limit of your credit card. You'll find yourself stuck with debt and it could even give you a hard time in paying.

Debit cards are different because the funds or money will come directly from your checking account or savings bank account. This way, you will use your own money in making a purchase. This means you can avoid casually accumulating debt. Debit cards can be compared to personal checks but they are more convenient to use. One of the best examples of this is a Visa debit card. Most people prefer to use Visa debit card because it is safe, convenient, and easy to use. They look just like credit cards so they are easy to carry anywhere. Visa debit cards are accepted anywhere that you use a credit card.

If you will use Visa debit cards, you don't have to carry huge amount of money or cash with you. You can also forget about bringing your checkbook all the time because debit cards are very handy and could easily fit in your wallet. Using Visa debit cards is also more secure especially if you are using the one that requires a personal identification number or pin. While signatures are simply falsified, a PIN committed to memory is much harder to crack. This will give thieves a hard time gaining access to your account and take advantage to your money. For added security, make sure to notify your debit card company in case your debit card got lost or stolen to prevent any unauthorized use.

Make sure to monitor all of your expenses regularly to be able to control your spending habits and manage your finances well. You could set a specific amount or budget that you could spend for a month to make sure that you will not overspend. Transactions can be viewed online, via your card providers portal. Protect your PIN and never reveal it to anyone. A common mistake is to record the PIN with the card - carry yours in your memory only.


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This article on using Visa debit cards is by Richard Greenwood of credit card comparison site click4credit.com.au. The site compares credit and debit cards from leading banks online.