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. You can’t spend what you don’t have. This avoids the temptation that credit cards give you to buy items you can’t really afford and then get stung when you see the monthly bill which you can’t repay in full. With Visa debit you stay in control of your spending and free from debt.
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. With a credit card you could be spending hundreds of dollars per year just on interest payments, with a debit card all your money goes on your purchases and you stay debt free by only purchasing things once you can afford them.
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. Also, in the event goods you pay for are not provided then Visa debit offers the same protections enjoyed by Visa credit card holders. Imagine you had paid a deposit for an item such as kitchen appliances and then the kitchen firm went bust. If you used cash for the payment then it’s unlikely you will see the money again.
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. This is great for budgeting as you can find areas to make cut backs.
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.