Using Debit Cards - A Better Alternative To Credit Cards?
These days using credit cards have become a way of life.
As a consequence,repaying credit card debt has become a grave problem for many a users.
Debit Cards are offshoots of such a situation.
When you opt for a debit card, you have to actually open a deposit account with the card supplier with your own funds.
Every time you use the card, your deposit account gets debitedby the amount you spend.
Some card suppliers put a limit to the amount you can spend which rangesfrom 50% to 100% of the amount of your deposit.
This ensures that you do not overspend andbuild up credit card debts.
More importantly, from the point of view of the card supplier, securing the amount in advance means that he does not have to worry about lending you his money and the consequent recoveryprocess.
The balance of advantage tilts in favour of the supplier.
So in reality if you go to see,the 'secured credit cards' do not giveyou any credit at all.
Hence these cards are also known as 'Debit Cards'.
If that is so, why do more and more people opt for debit cards instead of credit cards? You may have heard of people becoming financially unstable due to credit card debts.
Usingcredit cards is a two-way sword.
To benefit from them, one has to have a high degree of financial discipline and skillful management of credit.
Otherwise, they not only end uprunning high credit card bills, but also spoil their credit rating when they are not able torepay the credit card debts in time.
This poor credit rating stays with them as a stigma even after they pay off the debt.
It makes them unsuitable clients in the eyes of credit cardsuppliers, with the result that they are denied more credit cards.
For these individuals, debit cards compulsorily instill a disciplined way of incurring expenses.
It makes themcontrol their spending.
Since they no more use credit, their credit rating improves miraculously.
So this boon of debit cards is just the remedy to improve their financial status.
Using debit cards also spares you a lot of paperwork.
You don't have to fill up lengthyapplication forms for credit cards and you don't have to bother about maintaininga track of your bills.
You may even hate the idea of using borrowed money that is the base idea of usinga credit card.
It could be that someone you know have burned their fingers in the devastatingcredit trap and you wish to steer clear of such a situation.
All in all, these debit cards are finding favor with more and more people.
As a consequence,repaying credit card debt has become a grave problem for many a users.
Debit Cards are offshoots of such a situation.
When you opt for a debit card, you have to actually open a deposit account with the card supplier with your own funds.
Every time you use the card, your deposit account gets debitedby the amount you spend.
Some card suppliers put a limit to the amount you can spend which rangesfrom 50% to 100% of the amount of your deposit.
This ensures that you do not overspend andbuild up credit card debts.
More importantly, from the point of view of the card supplier, securing the amount in advance means that he does not have to worry about lending you his money and the consequent recoveryprocess.
The balance of advantage tilts in favour of the supplier.
So in reality if you go to see,the 'secured credit cards' do not giveyou any credit at all.
Hence these cards are also known as 'Debit Cards'.
If that is so, why do more and more people opt for debit cards instead of credit cards? You may have heard of people becoming financially unstable due to credit card debts.
Usingcredit cards is a two-way sword.
To benefit from them, one has to have a high degree of financial discipline and skillful management of credit.
Otherwise, they not only end uprunning high credit card bills, but also spoil their credit rating when they are not able torepay the credit card debts in time.
This poor credit rating stays with them as a stigma even after they pay off the debt.
It makes them unsuitable clients in the eyes of credit cardsuppliers, with the result that they are denied more credit cards.
For these individuals, debit cards compulsorily instill a disciplined way of incurring expenses.
It makes themcontrol their spending.
Since they no more use credit, their credit rating improves miraculously.
So this boon of debit cards is just the remedy to improve their financial status.
Using debit cards also spares you a lot of paperwork.
You don't have to fill up lengthyapplication forms for credit cards and you don't have to bother about maintaininga track of your bills.
You may even hate the idea of using borrowed money that is the base idea of usinga credit card.
It could be that someone you know have burned their fingers in the devastatingcredit trap and you wish to steer clear of such a situation.
All in all, these debit cards are finding favor with more and more people.
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