Debit cards have become a necessity over the years, and have some significant advantages over using cash or credit cards. Here we have discussed why using a debit card can be more fruitful for your financial goals in the long term, as opposed to using a credit card or cash.
They are today used on a fundamental level. Issued by the bank to make users spend and move money quickly and easily, debit cards are known for their ease of use and convenience.When you make a purchase using your debit card, money is directly deducted from your bank account. They are also used to draw out cash instantly from ATM machines.
Blake Wisz/Unsplash. Debit cards are convenient and quick to use.
Debit cards are convenient to use:
Debit cards are helpful for cardholders to check up on their accounts, all thanks to their ease of use and convenience. You can simply swipe your card to make a purchase. Now you don’t have to make trips to the ATMs if you’ve forgotten cash at home, or need to use your cheque book. A paper check book is now an obsolete thing, owing to the debit card and its utility and safety.
Emil Kalibradov/Unsplash. Debit cards are safe and prone to theft or fraud.
Debit cards are the safest option:
Most people are of the view that a credit card is a more convenient and safe option when making a purchase, ordering stuff online or opening up an emergency fund. But with a debit card, you have the option to spend money you already have, without incurring any more debt. Debit cards are also safer than carrying around an adequate amount of cash, as cash is highly likely to get lost or stolen. Debit cards are secured through an extra layer of protection, as they require a pin code or a chip to be entered before completing a transaction.
Mark Oflynn/Unsplash. Debit cards help curb overspending as you purchase from funds already in your account
Debit cards versus Credit cards: which is the right option for you:
Most people prefer using a credit card over a debit card if they need to borrow money that they don’t have in their checking account, or that they are trying to slowly build upon their credit. Using a debit card in this instance can be a great option for them, if they know that they are going over 30% of the recommended credit amount as per their credit line, or are too close to maxing out their credit card for the month.
Using a debit card also keeps you in check of your spendings, as the transactions are being made in real-time, from money deposited in your bank account. Using a credit card can quickly put you through debt if you are not careful, while using a debit card helps you keep control over your budget and expenditures each month.
