Credit or Debit?

2 02 2010

If you are currently in a debacle involving your credit, and you need a way to electronically pay for items, then a debit card is going to be the only resource for you to do so. If you are a person that has the drive and self-discipline to make sound financial decisions, then credit is the solution by far. Why? Because of the risk you take with credit, there is also the potential of specific returns you recieve with credit programs, that you dont recieve with debit. At the end of the day, debit is your money, credit is not. Lets take a brief look at each style of spending, and see what they consist of.

Debit is an electronic way of spending your own money. Your card may be backed by a major credit company, but it is only your funds which are effected by the transaction. If you are purchasing something that is $50.00, and you only have $49.00 available in your checking account, you will not be authorized the make the transaction (unless you have an overdraft protection or savings account link). With credit, you will be allowed to overdraft your checking account without a moments notice, and then have to reap the consequences later on.

With that extra risk, which isn’t a risk at all if you manage your money well, you also gain many perks with a credit card you just don’t receive with a debit card. Whether you are on a points program, or a miles bonus, you will get certain kick-backs from your credit provider for using their service. Many of these perks can really add up, and make a substantial difference in how you make your money work for you. Why keep your money in a Checking account when you can keep what you need for life and bills in checking, and put the rest in a savings or money market account, earning some form of interest.

When you start working to find the type of credit deals that fit your life, you can begin utilizing some very lucrative offers, and start making a difference in your financial picture today. Credit begets credit, and in today’s society, there is no realistic way to run from it. If your credit picture isn’t very clean, it’s better to start tidying it up with a positive track record, than run from it. One way of running from it is by using strictly debit. It will only be a matter of time before you go to get that nice new TV, shiny new car, or sizable home loan, and you wind up wishing you hadn’t been using debit all along.




One response

27 10 2010
Cord Blood :

checking accounts are very convenient for business transactions that is why i have it.-~

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