In today’s world of unprecedented economic turmoil, learning the art of money management is highly crucial. There was a time when the entire world’s trading and market ran on cash. But now it’s all about debit and credit cards. Credit or Debit, they both have undoubtedly made everything extremely convenient.
On one hand, some people go up and beyond buying while others know the secret of maintaining control and preventing overspending. Let’s take a deeper view as to how credit and debit cards can improve your lifestyle and financial situation:
Credit Cards – What Are They?
Although both Credit and Debit Cards may look the same, they have different functionalities. Indeed, both of them make the purchasing process manageable. Credit Cards give you the ability to borrow money from the card issuer but to a specific limit so you can either withdraw or purchase an item.
But it would be best if you had the proper understanding of when to use when.
A Credit Card given to you via a financial institution such as a bank allows you to borrow the institution’s money. There are several types of Credit cards, such as Premium Cards, Secured credit cards, Charge cards, Standard cards or Rewards cards.
You can also earn countless benefits such as travel points, discounts and much more. Due to tiered rates, you can look forward to better travel perks if you plan to go somewhere. When selecting rewards cards, don’t forget to check out the expiration and redeeming options.
Why Use Credit Cards?
If you use credit cards with utter responsibility, it can add to great advantage. A good history and spending record can help earn credit scores. A credit card can also provide coverage on anything if the product is damaged, stolen or lost.
Debit Cards – What Are They?
With a Debit Card, the payment process becomes a breeze. There is no taking of loans or borrowing anything at all. You pick and purchase at the moment without worrying about taking cash everywhere. They offer similar benefits as Credit Cards and specific consumer protection if issued by a notable payment processor, i.e. MasterCard or Visa.
The different types of debit cards are Electronic benefits transfer (EBT) CARDS, Standard debit cards and prepaid debit cards.
Why Use Debit Cards?
One of the crucial advantages of using a Debit card is protection from trapping oneself into a debt web. Since you are paying the money at the time of buying, you don’t have to worry about late payments. Especially if you are an impulsive buyer, a debit card will keep you in check with your purchasing target. You can also use My EasyFi’s money management software alongside your debit card to avoid going overboard with spending. An online money tracker app will aid in keeping close track of every penny you give away, enabling you to stick to a budget strictly. Moreover, as opposed to credit cards, you don’t have to worry about the annual fee with debit cards.
How To Discreetly Use Credit and Debit Cards?
No matter your choice regarding selecting your card, you need to be careful with your spending habits. Some of the steps that can help you with making adequate purchases are as follows:
- Don’t Overspend: It is no brainer that spending more than your limits will always lead you towards harmful outcomes. Avoid spending more than the set targets.
- Timely Payments: Always try to pay your balance in full and on time. Financial tools can also come in quite handy during such situations.
- Be Clear On Terms: It is vital to have a crystal clear understanding of the terms and conditions of both credit and debit cards.
- Avoid Multiple Accounts: If you have countless accounts, it can become hard to keep track of all the cards and your spending detail. Less is more.
With one credit and debit card in your wallet, life becomes simpler. Money management can seem complicated and complex at first. But as long as you are following the correct strategies, implementing the right financial planning tools and staying consistent. Nothing can stop you from enjoying financial stability.
Learn more about money management and budget building with My EasyFi today!