5 Reasons Why Everyone Should Own A Debit Card
Debit cards in recent years have become a must have accessory for every modern day being. Not owning one is like living in the past where every purchase is tedious and painstakingly handled through a check book. These days, its just a swipe and pin number/ signature away and off you go with your next schedule of the day. In case you are still pondering whether or not to own a debit card, I have listed several reasons below to help you decide.
1. Ever experience stranded in the middle of nowhere with no cash at hand to even buy food? Having a debit card gives you the power to purchase anything almost everywhere. These days, every fast food outlet and takeaway places in town have the convenience of debit card payment. All you have to do is order your meal then swipe your plastic and off you go. You could even withdraw some cash at the same time just so that you dont get into the same predicament with an empty wallet again. Now this is something that credit card cant do. Most places even charge extra or demands you purchase a particular amount before letting you charge on credit.
2. No delays in transaction details. Unlike credit cards, most debit card transaction turns up immediately the day after your purchase. These days, you can easily check your transaction details from your online account. This will allow you to keep a closer track of your spending and potentially helping you to manage your financials.
3. Debit card deducts your money from your account immediately upon a purchase. This will massively reduce any spur of the moment spending as you cant afford to spend what you dont have. Debit cards triumph in this aspect as it forces the individual to ponder about his/her financials before committing to a purchase as unlike credit card you dont get to borrow upfront.
4. Another type of debit card that does not require any bank account is called a prepaid debit card. These prepaid cards work like a phone card where you pay as you go and expires when the amount finishes. The advantage of having such a card is that you are not required to undergo any credit check and no interest fees are charged. This card will be suitable for travellers, free lancers and people with bad credit history.
5. Owning a debit card is a good practise ground to mould financial discipline. In contrary to credit cards you only spend what you have and because you are not borrowing money up front to pay for your purchases, there are no interest repayments or hefty late penalty fees involve.
There are other good reasons to own a debit card, but the ones here are the best we can think of. Of course, before you do anything of a financial nature, be sure you know the good and the bad. Also ask the institution about reporting and record keeping as well as delays in processing.
1. Ever experience stranded in the middle of nowhere with no cash at hand to even buy food? Having a debit card gives you the power to purchase anything almost everywhere. These days, every fast food outlet and takeaway places in town have the convenience of debit card payment. All you have to do is order your meal then swipe your plastic and off you go. You could even withdraw some cash at the same time just so that you dont get into the same predicament with an empty wallet again. Now this is something that credit card cant do. Most places even charge extra or demands you purchase a particular amount before letting you charge on credit.
2. No delays in transaction details. Unlike credit cards, most debit card transaction turns up immediately the day after your purchase. These days, you can easily check your transaction details from your online account. This will allow you to keep a closer track of your spending and potentially helping you to manage your financials.
3. Debit card deducts your money from your account immediately upon a purchase. This will massively reduce any spur of the moment spending as you cant afford to spend what you dont have. Debit cards triumph in this aspect as it forces the individual to ponder about his/her financials before committing to a purchase as unlike credit card you dont get to borrow upfront.
4. Another type of debit card that does not require any bank account is called a prepaid debit card. These prepaid cards work like a phone card where you pay as you go and expires when the amount finishes. The advantage of having such a card is that you are not required to undergo any credit check and no interest fees are charged. This card will be suitable for travellers, free lancers and people with bad credit history.
5. Owning a debit card is a good practise ground to mould financial discipline. In contrary to credit cards you only spend what you have and because you are not borrowing money up front to pay for your purchases, there are no interest repayments or hefty late penalty fees involve.
There are other good reasons to own a debit card, but the ones here are the best we can think of. Of course, before you do anything of a financial nature, be sure you know the good and the bad. Also ask the institution about reporting and record keeping as well as delays in processing.
About the Author:
Debbie Robbyns blogs in Personal Finance 2009. Visit her website for insightful and simple to pickup personal finance tips for your everyday lives.
posted by Credit Counseling at
7:21 PM
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