doing research on card usage in these two countries. Is debit better than credit?
2006-07-08 13:41:05 · 6 answers · asked by alphonsusaloysius 1 in Business & Finance ➔ Personal Finance
debit can be turned in to cash alot faster than credit and with debit it goes thru to your bank right when you spend it with credit it may take a few days to process and what not
2006-07-08 13:47:31 · answer #1 · answered by Meagan P 3 · 0⤊ 0⤋
My preference is DEBIT ... but answer is:
It depends ... things to consider ...
Big plus for debit card ... you are not incurring debt ... you are spending the money you already have ... no nasty surprise at the end of the month ... no finance charges getting racked up.
Potential plus(es) for credit cards ...
+ many credit cards have 'incentive programs' like frequent flyer miles or 'cash back' bonuses that can benefit the card holder
+ if you have the discipline to pay off the balance each month, you can keep your money 'at interest' until you pay the monthly credit card bill (as opposed to debit cards where the money is immediately deducted from your account)
+ if you need to make large purchases and spread the payments over several months
+ if you are trying to establish a credit record
+ because certain transactions (like car rentals) place holds on your account, debit cards may not be accepted
big downside to credit card
- unless very disciplined with using them, can get out of control with easy credit (racking up a big debt at high interest rates).
2006-07-08 13:58:40 · answer #2 · answered by one_observation 3 · 0⤊ 0⤋
The preference is related to convenience. It is easier to get a debit card than a credit card.
Downside to debit cards are the fees you are charged if your account funds are insufficient. Imagine a sandwich for 2 costing 25 if you do not have the funds in the account.
Downside to credit card is if you do not have the maturity and discipline to spend what you can afford you sell out your future earnings with interest.
2006-07-08 14:19:47 · answer #3 · answered by selfmanagement808 3 · 0⤊ 0⤋
Debit is better than credit if you get into the mindset of spending only what you have.
2006-07-08 13:45:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Agreed! Only spend what you have. Don't run up debt!
2006-07-08 13:47:00 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Easy, no debt, no repaying interest.
2006-07-08 13:48:48 · answer #6 · answered by Jessie P 6 · 0⤊ 0⤋