Credit cards vs. debit cards

When looking at credit cards versus debit cards at first glance they may seem very similar but on closer inspection the differences are outstanding. The first major difference is that with a debit card you are paying for all your purchases up front. With a credit card you are postponing the payment of your purchases to the end of the month. Both credit cards and debit cards come with fees. Whereas credit cards charge you interest and sometimes annual fees, bank cards usually charge card holders transaction fees. Most debit cards have monthly plans that include a certain number of transactions free per month then charge a transaction fee on purchases above and beyond that. Some debit cards offer infinity plans that cover an unlimited number of transactions per month for a higher monthly service fee. Which card is better to use? Well, that depends entirely on your buying philosophy and your personality. Many people prefer to use their debit cards because in that manner they can keep their credit card debt to a minimum. Other people prefer using their credit cards for all their purchases in order to maximize their privilege points and then pay off their balances in full at the end of the month. Striking a balance between using your credit card versus using your debit card is probably your best bet. Although debit cards are great for keeping your debt at bay, they can also fool people into spending more than they should. Using your debit cards to withdraw a set amount of money per week is one way to control debit card expenditures. Using your credit card for big ticket items and emergencies is another way of making smart use of your credit card. Whatever you choose credit cards and debit cards were designed to convenience the card holder but using them wisely is the key to making them work for you and not the other way around.