Visa Debit Cards - Staying Debt Free
In Credit Repair of CreditGuru (April 28, 2009 10:44 pm)
Over the past three decades or so since credit cards became widely available they have fuelled consumer spending well beyond the means of most households which has resulted in unrealisted amounts of debt. The global credit crisis has seen this all tumble down and now more and more people are looking to rid themselves of credit card debt and look for alternatives.
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. It forces you to spend within your means and as a result all of your money is spent on the items you want and you’re not wasting your income on interest payments to the banks.
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. In the unlucky event that your debit card is lost or stolen it can be cancelled or replaced.
Purchase Protection: When you make a purchase with cash it offers very little purchase protection beyond that offered by the retailer. If you purchase an item that turns out not to be as described and the store won’t take it back then a debit card may offer some protection. 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. You can say goodbye to the money if you paid cash.
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. Checking out your statements at loeast once a week can keep your spending on track and within budget.
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. You can buy items online, over the phone and overseas.
If you don’t want the worry of racking up debt with a credit card but still want the convenience (or don’t fancy walking round with a briefcase of cash) then a Visa debit card might be an option.
Article by Richard Greenwood of Click4Credit.
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