It doesn’t matter if you have access to a credit card or not, it’s important to understand the benefits of using a debit card. You may come to realize that relying on this form of payment is the way to go in the future.
So, what are the benefits of using a debit card? Keep reading to find out.
1. No late fees
With a credit card, you’ll always have a minimum payment due on a specific day of the month. While this is something you can get used to, forgetting to pay will result in a late fee. There’s no fear of this happening with a debit card. This is a cash-based form of payment so you’re not borrowing anything. Since the money you’re using is yours, there’s no payment.
2. No interest charges
Using a credit card puts you at risk of paying interest. Once again, that’s a result of borrowing money. Since you’re using the money in your bank account with a debit card, you don’t have to worry about interest charges.
3. No risk of debt
The biggest fear of using a credit card is debt. You don’t want to rack up a balance that you can’t afford to pay at the end of your statement period. With a debit card, you only have access to the money in your account. When it’s gone, it’s gone. You’re not taking on debt.
4. Accountability for your spending
Credit card spending is difficult to track. For that reason, it can quickly grow out of control. A debit card gives you accountability for your spending. You track (or should track) all your income and payments, which allows you to remain accountable for every dollar you spend.
5. High level of security
This is a big deal when it comes to any form of payment. Without the right security measures, you’ll always be on the edge of your seat. Talk to your debit card issuer about security. Ask them how they handle unauthorized purchases. Discuss the process of keeping your account secure. You’re likely to find that the security measures in place will give you the peace of mind you’re seeking.
These benefits don’t mean that you have to use a debit card exclusively. You may find that the best approach is a mix of a debit card and credit card. Experiment with various scenarios until you determine what works best for you.
Do you regularly make purchases with a debit card? Do you agree with the benefits above? What others would you add to the list?