Debt free with Visa Debit
Wednesday, May 20th, 2009 Subscribe To Our Feed
For the first time since the creation of the credit card, consumers in the US and around the world are finally realizing that spending fuelled by credit can’t be sustained forever and when the economy heads south it can prove difficult to get out of debts created by credit cards.
If you love the convenience provided by credit cards and don’t want to have the hassle and safety issues created by switching to cash then a Visa debit card may be your answer.
Key benefits of Visa Debit versus Credit
Debt free - Spend only what you can afford: When using a debit card such as Visa debit you are accessing money directly from your main bank account. If you don’t have it, you can’t spend it. You can no longer be tempted into buying items you can’t afford when you need the money already in your bank account. With Visa debit you stay in control of your spending and free from debt.
No Interest: With a debit card you are using your own money so you won’t be hit with interest payments as you struggle to pay off heavy credit card bills. With a credit card you could be spending hundreds of dollars per year just on interest payments, with a debit card all your money goes on your purchases and you stay debt free by only purchasing things once you can afford them.
Key Benefits of Visa Debit versus Cash
Safety: It’s always handy to have a small amount of cash in your wallet for small every day purchases such as public transport tickets, drinks, snacks and so on but carrying large amounts of cash around everyday can be risky in case it gets stolen or even if you simply misplace or lose your money or wallet. A debit card can be cancelled quickly and easily if stolen and a replacement card provided.
Purchase Protection: When you make a purchase with cash it offers very little purchase protection beyond that offered by the retailer. Cash offers no purchase protection but if what you have issues with a retailer or your items then you may have some purchase protection with a debit card. Also, in the event goods you pay for are not provided then Visa debit offers the same protections enjoyed by Visa credit card holders. Imagine a situation where you paid a travel agent a deposit for a holiday in cash and then the agent declared themselves bankrupt. If you used cash for the payment then it’s unlikely you will see the money again.
Keep Track: Unless you are very organized and keep a spending diary you may find you lose track of where your money is going. All your payments can be tracked via your statement or online banking with a debit card compared to cash which will show ATM withdrawals but not where the money was spent. It’s a fantastic budgeting tool as you can scan your statements and see where your moneys going and where changes can be made.
Acceptance: Visa debit enjoys the same global acceptance as Visa credit cards meaning you don’t have to be there in person to pay for an item. As well as in person the card can be used at millions of locations including online stores, via the phone or around the world when travelling.
If your currently looking to cut back on your debts but still want an convenient spending method then Visa debit may be the right option for you.
Article by Richard Greenwood of Click4Credit.
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