Debit Cards Vs Credit Cards

A common way to prevent your credit card balances from getting any larger is to try to make all your purchases the old fashion way, with cash. An alternative to carry cash around is to use a debit card. When using a debit card you are not borrowing money that you agree to pay back at a later date, you are authorizing the store to immediately deduct the amount of your purchase directly out of your checking account. Banks across the country have been encouraging consumers to use debit cards as an alternative to credit cards promoting the advantages of a debit card over a credit card.

Why Prepaid Debit Cards Are Good For You

In the past few years, prepaid debit cards have quickly become all the rage; in fact, it seems as though no matter where you turn, advertisements are prominently displaying all of the great benefits of using this new form of plastic. Turns out, these advertisements aren't exaggerating: prepaid debit cards are a smart and flexible alternative to using more traditional debit and credit cards.

Here's the latest scoop on why prepaid debit cards are good for you - and your wallet!

Tips on Using Your Debit Card

Prepaid debit cards give its holders the convenience of paying with plastic without the risk of bad debt. However, that doesn't mean owners of debit cards can let their guard down. True enough, incorrect use of debit cards can still lead one into trouble. In this article, let us discuss eight practical suggestions on how to spend with prepaid debit cards safely:

Using Debit Cards to Develop Spending Self-Discipline

Debit cards are issued by banks and, in most cases, look and spend exactly like a credit card. The only difference is that the debit card does not advance you any credit. In fact, using a debit card is much like writing a check without the paper. Any amount you spend is deducted directly from your checking account virtually immediately, depending on how the transaction is actually processed. There is no bill to pay at the end of the month, no accumulating interest charges and no membership fees.

Protect Your Debit Card

Your debit card is often handy for you, and maybe others. Think about it as a direct line to your checking account. And how many times does the store clerk ask to see your identification when you use your card? In fact, do they know if it is your card at all that you are using?

With the right information, someone can use your debit card to withdraw money from you bank account. You may not know you've been a victim until checks begin to bounce. By that time, its already a big mess.