Benefits of Debit Cards

We all want the convenience that a credit card offers; pay for bills over the phone, shop on the internet, make hotel reservations from the comfort of your room, pay at places where personal checks are not accepted, and all other benefits. However, these conveniences provided have often blinded people from the serious dangers of using credit cards. The worst of these is the illusion that is often created. Most people forget they don't actually own the money they are spending. This realization always comes when people become faced with the realities of paying the huge debts they have accumulated from irresponsible use of credit cards.

This is often the starting point for the numerous benefits of a debit card. Debit cards can instill financial discipline that credit cards, in most cases, destroy. With a debit card, all your purchases and expenses are directly deducted from your checking account. So, your expenditures are always limited to what the money in your checking account can cover. If you don't get it; the primary advantage of this arrangement is that you don't get haunted, by purchases or other financial decisions you made in the past. You might get broke after an uncontrolled spending spree, but you won't be expected to pay the debts and the neck breaking interest months after you make that mistake.

In essence, debit cards bring you all the conveniences that come with a credit card. You can use your debit card anywhere a credit card is accepted, with very reasonable fees - no fees in most cases, and no interest to worry about months later. Although debit cards too have some disadvantages like, you might get really broke after an uncontrolled spending and the fact that debit card cannot rebuild your credit, if you have a damaged credit already. So, in the end you still have to compare the benefits and make the choice most suited to your condition and habits. But if you are really concerned about spending money you don't have, or if you have been very irresponsible with a credit card, debit cards might just be the best way to go.