Business & Finance Debt

Debt Settlement - Credit Cards Vs Debit Cards

There might be a swarm of questions in the head of a person who is holding a plastic card in their hands for the first time.
It might be hard to get used to the thought that this small piece of plastic contains money.
Both credit and debit cards have much in common.
Both of them are rectangular pieces of plastic approximately 85x54 mm in size.
Both credit and debit cards are issued by financial institutions like banks or credit unions.
They both are just another form of your money, and you should always remember this truth.
Of course there are some differences between both types of cards.
Such differences include various layouts of elements or details on the card surface or the name of the company that issued the card.
However, there is one major difference between them.
The most important difference between both cards is that credit cards allow you to withdraw some additional sum of money to the amount you currently have on your card account.
For instance, you have got $1000 on your credit card.
But if you want to buy the latest model TV set which costs $1200 then it can be easily done with the help of your credit card.
You will see -$200 on your balance but it is alright as you have promised the credit card company to pay out your debt in the future.
This is one of the biggest problems that happen to people who cannot control their expenses.
This cannot happen if you use a debit card instead of a credit one.
Unlike credit cards the funds are transferred from your bank account, and you will not have to pay the bank back on a later date.
To make a long story short, debit cards use the money you have and a credit card uses the money you do not have.
Before choosing a plastic card, I would suggest you talk to your local bank.
Different card types imply different fees and different consequences.
Choose what is better for your particular situation, taking into account your regular expenses and traits of your character.

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