What is a Debit Card?July 28th, 2014
A debit card looks like a credit card and works like a credit card – but it isn’t.
It’s simply a more convenient way to pay for something than writing a check or digging money out of your purse or wallet.
You can also use a debit card to withdraw money from an ATM.
Many banks offer free debit cards with your checking and/or savings account.
When your pay for something with a debit card, the money will be deducted (either immediately or within a few days) from your bank account.
Unlike a credit card, there is no application or approval procedure for a debit card. And using a debit card will not affect your credit rating in the slightest.
Using a debit card to pay for most (if not) all of your purchases may provide you with a safer alternative to carrying cash.
If you lose your debit card, contact your bank immediately and have them put the deep freeze on it.
TIP: Think before you swipe. Ask yourself: “Do I really need this?”
Question: Are there any disadvantages to using a debit card?
Would you be more likely to buy things you don’t really need if you only had to hand over (or swipe) a piece of plastic? As opposed to real money?
Although there are no fees associated with using a debit card, you may find yourself spending more money with a debit card than you would if you had to write a check or pay cash for your purchases.
If you’re not careful, you could also overdraw your bank account (or go below the “minimum balance” for your account) and have to pay a &%$# fee.
A Painless Way to Save Money
If you don’t use a debit card and instead pay cash for your purchases — and then piggy bank the coins you receive in change — you will (after a year or so) find yourself with several hundred dollars in “free money” (after you emptied the piggy bank onto your kitchen table and rolled the coins).
Don’t spend time beating on a wall, hoping to transform it into a door.
— Coco Chanel