Credit Or Debit Card|Clear Up The Confusion That Affect Your Budget
All the plastic in your wallet is not the same because most are credit cards and at least one is a debit card, even though these cards look alike, learn how the differences between them affect your homestead budgeting and cash flow.
A debit card deducts money directly from your checking account, just like withdrawing cash or writing a check.
You do not pay interest because you are accessing your own money.
On the other hand, a credit card accesses a line of credit issued by a bank.
Cardholders are given a period of time to pay off the purchase amount.
If you do not pay in full by the end of this period, you will be charged interest.
Each type of card has certain advantages and disadvantages you should consider carefully.
Choose A Debit Card For Convenience
The following benefits for a bank debit card are:
- Budgeting. You’re more likely to spend within your means and avoid debt.
- Speed. Purchases are fast and easy. You swipe, authorize and go.
- Simplicity. You don’t have to carry bulky checkbooks, multiple identification cards, and large amounts of cash.
In addition, there’s no annual fee and, unlike a credit card, if your debit card gets lost or stolen, no one else can use it without your pin number.
Remember, since debit card transactions come out of your checking account immediately, you must keep track of your withdrawals to avoid embarrassing shortfalls.
And, you can’t stop payment on debit card purchases.
Get Protection with A Credit Card
Besides the added benefits of rebates and bonus points you get with many cards, these are good reasons to use traditional credit:
- Purchase protection. Some card issuers will replace, repair, or reimburse you for eligible items purchased with your card. Check your cardholder agreement for damage guarantees and warranties.
- Universal acceptance. Many consumer credit counselors recommend credit cards for purchases online or during overseas travel.
Still, credit cards can be costly if you don’t pay attention to extra fees, penalties, and interest rates.
Have you considered the PayPal Prepaid MasterCard that you can purchase at Family Dollar?
You can use it to keep your budget under control while you shop and pay bills virtually anywhere you need to.
It’s easy to use.
And, when you activate your temporary card, you can expect your personalized card to arrive within 10 business days.
Put your card to good use.
Link the PayPal Prepaid MasterCard to your online PayPal account.
Enjoy online access to account details once completed.
That way, you can:
- Shop at your favorite stores and pay bills online or from your mobile.
- Transfer funds from you PayPal Account to your prepaid card with Instant Transfer.
Tonza Borden is a 20-year finance and digital marketing expert with a passion for coaching and training. Visit her website at RuralMoney.com for exclusive rural resources and strategies for your financial future. Google+
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