The article concerns the question – Are Debit Cards Better? As credit card debt becomes more and more of a problem a lot of people are starting to look for ways to stay out of trouble. A lot of people are choosing to use debit cards instead of credit cards since this will help to keep them from running up debt.
As more people start to use their debit cards it is becoming easier to use them in place of credit cards, things like internet purchases that used to require a credit card can now be made with a debit card. However a debit card is not really a replacement for a credit card and they both have their advantages and disadvantages. Looking at these will help determine if a debit card really is better than a credit card.
Determining whether or not debit cards are better than credit cards is not easy since this going to depend on your situation. The advantage of a debit card is that you can’t get yourself into trouble with debt with a debit card. Given how many people have trouble with credit card debt this is an important factor.
Since a debit card will only let you spend money that you actually have there is no way that you can get into debt. However this isn’t always the advantage that it seems. If you rely on debit card to keep you out of debt you will never learn how to handle debt properly. There are times when it is appropriate to have debt and if you never go into debt you will never learn to deal with it responsibly.
The biggest downside to debit cards is that they have no impact on your credit rating. While a lot of people consider this an advantage since you can’t ruing our credit with a debit card it really is a negative. It is important that you establish good credit because you will need to borrow money at some point in the future.
This could be for a mortgage or to buy a car but you will need to have credit. In order to establish good credit you need to actually have credit and that means that you need to have and use a credit card.
Rather than asking whether debit cards or credit cards are better it would make more sense to view them as being complimentary. There are times when you will need a credit card to do things like booking a vacation but a lot of people also use their credit card when it isn’t a good idea.
Things like buying groceries or eating out or really any day to day expense shouldn’t be paid for with a credit card. Unfortunately a lot of people do this because it is so convenient. A better option would be to have a debit card for your day to day expenses while keeping a credit card for the times when it is necessary to have on. This will help you to establish your credit without getting into trouble with debt.