January 18, 2014 Admin | January 18, 2014 What is the difference between using a debit card and a credit card? Why should you care?
2 thoughts on “January 18, 2014”
Debit cards draw from money that you already have. Credit cards are like taking out small loans. Be careful when using credit cards. Don’t take more than what you can afford to pay off in a month. Credit card accrue interest very fast, pay it off immediately!
You nailed it, Alex! Well done. Let’s recap.
The debit card has replaced the check. When you use it, money comes directly out of your account.
The credit card is like a short term loan. You borrow the money and within a month or so, you agree to pay the money back. If you pay it off in full, which you should, you will pay no interest on that loan. If you don’t, you will pay interest.
So what? The debit card is a viable way to pay for your stuff. So is the credit card IF you are organized, always pay on time, and always pay it off in full each month. If you are not able to do those things, DO NOT own a credit card.
A responsible credit card user can get a rebate card, and you will end up paying the credit card company nothing in interest, while they will provide you money back each year via that rebate. Take control of your credit card or let your credit card take control of you. The choice is YOURS.