Debit Cards - A Smart Choice?
by: WilliamBlake |
Total views: 9 |
Word Count: 433 |
View PDF | Print View
Share This Article
Connected to checking accounts, debit cards are used as if they were credit cards, bearing the logos of Visa or MasterCard. Debit cards, however, are not charged any type of fee since they only use the money available in the bank account they are attached to. Debit cards seem like a good choice, but considering the details will help you decide for sure.
A customer can choose whether or not they wish to receive a debit card at the time they open a checking account. There appearance is quite similar to that of credit cards and they are used in the same way, making purchases at restaurants and stores easy and quick. Plus, none of the charges associated with credit cards apply to debit cards. Bank commercials often glamorize the use of debit cards, as if using cash were the most terrible faux-pas in the financial world.
Debit cards teach people to manage money again when they have had trouble in the past with credit cards. They come complete with a safety net because they are tied to a checking account with a set amount of funds. Checks and cash are being pushed out of the way in favor of the "new plastic".
The above mentioned functions of debit cards make them seem easy to use and safe, which they can be. Be warned, however, that there are risks associated with the misuse of debit cards.
In order to balance your checking account, all purchases made with a debit card should be recorded. ATM's, a modern marvel of convenience, can be a huge source of problems for a debit card user since they offer instant cash.
Just as quickly as that money was deposited in your account it can disappear if you are not careful. The checking account can become overdrawn without ever bouncing a check. ATM receipts can be deceiving, because they don't always reflect the true current balance in the account if other transactions haven't cleared the bank.
Like credit cards, debit cards can have funds blocked off by businesses you make purchases from. They freeze a certain amount of money until the transaction clears. For example, this means that buying $20 of gasoline at the gas station will actually freeze $50 in your checking account, causing problems if you try to spend the remaining $30.
Debit cards are a good choice if managing money is a problem. But, learn you use them wisely or you could run into trouble with your checking account balance.
Share This Article
Rating: Not yet rated Next Article - Summer Camp Cost Help From the IRS and Previous Article - Golfing in Spain - Searching for Accommodations
About the Author
Debt consolidation is an effective way to pay off debt faster but it's not right for everyone. Learn more about whether you should consider consolidating your debt on the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com
Comments
No comments posted.Add Comment
Popular Articles about: Taxes
1: Offshore Bank Account: 8 Issues In Preparation For Your Start.2: British Face 2008 Tax Haven Government Pressure
3: How Can I File My State Taxes Online
4: Start Tax Planning, Now!
5: Texas Sales Tax Today
6: End Your Tax Nightmare with Minnesota and Dallas Attorney
7: xfNoeUHgPdmx
8: R & D Tax Credit: Direct Benefits To Small & Mid-market Companies
9: Cost Of Living In California
10: Where Will Your Future Money Leave You
11: Untangling Difficulties with IRS Tax Forms
12: Get IRS Refunds using Water Powered Car
13: Tax Tips for the Self-Employed
14: Mortgage Refinancing: Taxes Tips
15: Viagra
16: UK Tax Compliance
17: Understanding Capital Gains Tax
18: How Taxes Impact Property Values
19: Avoiding an IRS Audit
20: Offshore Tax Havens: Panama vs Switzerland
21: Dealing With Taxes Just got Easier!
22: Texas Cost Of Living
23: Golfing in Spain - Searching for Accommodations
24: Summer Camp Cost Help From the IRS
25: Information On Tax Relief Lawyers
26: The Benefits Of A Roth IRA
27: Millions In Unclaimed R&d Tax Credits For Manufacturers
28: The IRS Can Take A Joke, Right?
29: Considerations Of Buying A Home In A Busy Area
30: Teaching Teens about Taxes