The Good and the Bad of Debit Cards
When using a debit card, it is important to know that they are directly joined to your checking account. Many people use these cards as if they were a credit card, especially if they are considered a Visa or a MasterCard, meaning the logo of either one of these companies is present on the card. Debit cards do not charge any sort of fees because the amount of money in the account is the amount of money available on the card. With these facts, is a debit card a good thing to have?
When you open a checking account and sometimes a savings account you can elect to have a debit card in place of an ATM card. You can use a debit card in much the same way as a credit card, only without all the fees and penalties that go long with a credit card should you miss or become late on a payment. You will find that you can purchase things in stores and restaurants that you could not have previously purchase without having cash on you. It’s now like those commercials that show how well everything moves along because of using a debit card then all of a sudden someone tries to pay cash and everything grinds to a halt.
If you are someone who is not good at managing money, then a debit card might be good for you. Debit cards are able to teach people to manage money, especially those who overspend a lot or have had issues in the past dealing with credit cards. These cards come with a safety net because of the fact that they are joined with the checking account which provides only as much money that is in the account itself. Say goodbye to checks and dollar bills because plastic is the new trend.
Since we now know how a debit card works, you do need that know that they do have pitfalls, especially for people who like to spend and spend and for people who are not the most responsible. Debit cards should always be handled with care and if you are someone that can do that, then a debit card is great for you.
Because debit cards are joined with a person’s checking account, all transactions are recorded in a computer program managed by the bank. The bad side of debit cards is the dreaded ATM machine. Though the machine is just a box that spews out money after a few numbers are entered, it has its pitfalls.
Unfortunately, just as fast as you get money or deposit money into your account, it can just as quickly go away. If you are careless with your debit card, you are sure to run into problems. A checking account can be overdrawn, even if you don’t bounce a check. Another downfall is that the receipts the ATM machine provides are not always the most up-to-date.
Debit cards can also be blocked by your bank or a store. If you purchase something for $40 at a store and the store has a $50 block on your card and you want to buy something that is $10 or more, you might run into trouble until the block on your card goes away.
If you want to learn to manage your money, then a debit card is a great choice for you. When using a debit card, learn how to be wise when using it or you could run into a lot of conflicts that can be avoided easily.
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