National Debt Relief described some of the benefits of using debit cards over credit cards in an article titled “6 Ways Debit Cards Are Better Than Credit Cards” , which explains why there are times it is better that consumers use their debit cards to pay for purchases rather than to charge them to credit.
The article points out that debit cards are often perceived to give both the benefits of using cash and credit cards at the same time. The biggest difference between debit and credit cards is that the former uses actual cash in a bank account while the latter takes out a short term unsecured loan from a lender.
One of the amazing benefits of debit cards is that it does not put a consumer on debt every time they use it. Given that their bank account gets smaller every swipe of their debit card, it does not add to their debt. Unlike credit cards, consumers automatically get in debt right after swiping their credit card.
They then get a statement for the purchases on their card that is due at the end of the month. If consumers cannot make the full payment, which is advisable, they opt to pay a minimum amount and slapped interest and fees along the way. This increases the amount that they are actually paying for the item compared to using a debit card.
Consumers also prefer using their debit cards because they don’t feel stressed over an interest rate because there is none. Credit cards have some of the highest interest rates in the financial world but that is just to cover the risk the lenders are taking on every time they agree to that short term loan.
Debit cards don’t have that problem because the money that is being used to pay for a purchase is the consumer’s to begin with. It is like paying with cash but just a lot safer. The guarantee of immediate payment is also something consumers can expect with debit cards. This is important with due payments because there are credit card payments which takes time to post rendering the payment late.
To read the full article, click this link: https://www.nationaldebtrelief.com/6-ways-debit-cards-are-better-than-credit-cards/
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