Debit Cards: Debt Free Spending

Debit cards and credit cards share many attributes - they are easy to use, and accepted by many retail and commercial outlets. The crucial difference is that the funds spent on your debit card come directly from your own account, whereas credit card transactions incur a debt. A debit card is limited by the amount in your account, a credit card by the amount the card issuer is willing to lend to you.

You will be given some days to pay for your balance and they even let you pay only the minimum amount required if you can't pay the whole amount. Of course they will charge you extra for the interest if you fail to pay the whole amount. Any unpaid balances remain outstanding, and when increased next month by further purchases, can quickly lead to you expending all the credit available on that card. You'll find yourself stuck with debt and it could even give you a hard time in paying.

Debit cards are different because the funds or money will come directly from your checking account or savings bank account. This way, you will use your own money in making a purchase. This means you can avoid casually accumulating debt. Debit cards can be compared to personal checks but they are more convenient to use. One of the best examples of this is a Visa debit card. Most people prefer to use Visa debit card because it is safe, convenient, and easy to use. They look just like credit cards so they are easy to carry anywhere. Most retail stores all over the world accept Visa debit cards so you could use it anywhere and whenever you need to.

If you will use Visa debit cards, you don't have to carry huge amount of money or cash with you. You can also forget about bringing your checkbook all the time because debit cards are very handy and could easily fit in your wallet. Using Visa debit cards is also more secure especially if you are using the one that requires a personal identification number or pin. While signatures are simply falsified, a PIN committed to memory is much harder to crack. A further security measure that impedes unauthorised access to your money. It is vital to immediately notify the issuer if your card is missing.

Make sure to monitor all of your expenses regularly to be able to control your spending habits and manage your finances well. You could set a specific amount or budget that you could spend for a month to make sure that you will not overspend. Transactions can be viewed online, via your card providers portal. Protect your PIN and never reveal it to anyone. Memorize your PIN so you don't have to write it on the back of your card or on any piece of paper that you keep with your card.

Article by Richard Greenwood, founder of click4credit.com.au an Australian credit card comparison site which compares products from leading banks including Visa debit cards.

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