For the first time since the creation of the credit card, consumers in the US and around the world are finally realizing that spending fuelled by credit can’t be sustained forever and when the economy heads south it can prove difficult to get out of debts created by credit cards.
If you love the convenience provided by credit cards and don’t want to have the hassle and safety issues created by switching to cash then a Visa debit card may be your answer.
Key benefits of Visa Debit versus Credit
Debt free – Spend only what you can afford: When using a debit card such as Visa debit you are accessing money directly from your main bank account. If you don’t have it, you can’t spend it. You can no longer be tempted into buying items you can’t afford when you need the money already in your bank account. Visa debit allows you as the user to control your everyday spending and avoid falling into the dreaded debt trap.
No Interest: With a debit card you are using your own money so you won’t be hit with interest payments as you struggle to pay off heavy credit card bills. It forces you to spend within your means and as a result all of your money is spent on the items you want and you’re not wasting your income on interest payments to the banks.
Key Benefits of Visa Debit versus Cash
Safety: It’s always handy to have a small amount of cash in your wallet for small every day purchases such as public transport tickets, drinks, snacks and so on but carrying large amounts of cash around everyday can be risky in case it gets stolen or even if you simply misplace or lose your money or wallet. A debit card can be cancelled quickly and easily if stolen and a replacement card provided.
Purchase Protection: When you make a purchase with cash it offers very little purchase protection beyond that offered by the retailer. Cash offers no purchase protection but if what you have issues with a retailer or your items then you may have some purchase protection with a debit card. Visa debit offers the same purchase protection schemes that are enjoyed by Visa credit card holders. Imagine a situation where you paid a travel agent a deposit for a holiday in cash and then the agent declared themselves bankrupt. If you paid cash then you could kiss that money goodbye.
Keep Track: Unless you are very organized and keep a spending diary you may find you lose track of where your money is going. By using a debit card you can keep track of purchases by reviewing your statements and online banking. Checking out your statements at loeast once a week can keep your spending on track and within budget.
Acceptance: Visa debit enjoys the same global acceptance as Visa credit cards meaning you don’t have to be there in person to pay for an item. You can buy items online, over the phone and overseas.
If you don’t want the worry of racking up debt with a credit card but still want the convenience (or don’t fancy walking round with a briefcase of cash) then a Visa debit card might be an option.
Article by Richard Greenwood of Click4Credit.