5 Excellent Reasons to Own a Debit Card

By Debbie Robbyns

I was watching television today and saw a commercial for a local business. People were buying things and moving on. Everybody paid with a debit card except for one lady who pulls out her check book. All of a sudden, all the activity stops, the sky turns gray and the sun dims. When this lady is done writing her check, everything goes back to the way it was at first. Debit cards have become a way of life in recent years and we have put together five reasons to have one, even if you are without a bank account.

1. Most banks offer their debit card holders with an online account as well. This means that you get to check your transaction almost anytime at anywhere to your convenience. Debit card transaction details appear almost immediately a day after your purchase. There are no surprises to where your money goes as you will now have a detailed trail to all your transactions. These days some banks also offer guarantee on internet transactions and online purchases just like credit cards.

2. No delays in transaction details. Unlike credit cards, most debit card transaction turns up immediately the day after your purchase. These days, you can easily check your transaction details from your online account. This will allow you to keep a closer track of your spending and potentially helping you to manage your financials.

3. Debit card cuts down on unplanned purchases as you can only afford to buy as much as you have in your account. It helps control your spending habit because it deducts the amount directly from your account. Unlike credit card, you dont get to buy now, pay later which most of the time translates to buy now, regret later.

4. Prepaid debit cards are gaining in popularity. These do NOT require a bank account. They are like those PAYG (pay as you go) phone cards. You get a card and load it with money. When the money is all used, the card can no longer be used. Simple, isnt it? This is a very easy way for business owners to pay freelancers or vendors. Even payroll can be made with debit cards

5. Owning a debit card helps you to live within your means especially when you are the type of person that struggles to pay your credit card debt every month. With debit card, you only spend what you have. There are no major fees involved and certainly no interest repayments therefore your debt will not compound to a horrendous figure like what most credit cards do.

There are many other reasons why debit cards are still better than credit cards however I have only listed the top few. Before you make any financial decision or purchase any financial product, you should always do your research and compare the pros and cons before committing yourself to the product. A little time and effort goes a long way.

About the Author:

Debbie Robbyns is the author of Personal Finance 2009. Drop by her website for insightful and simple to pickup personal finance tips for your everyday lives.