Visa Debit Cards: Using them to Avoid the Debt Trap
If you want to escape the debt trap for once and for all then a debit card such as a Visa Debit might be the answer for you. Unlike a credit card there is no option to borrow money on a debit card so you can be guaranteed that you will live within your means and not build up heavy debts on your card.
One of the biggest differences between debit and credit cards is that with a debit card the money your spend is taken direct from your bank account. This means you are limited in your spending by how much you lodge to your account each month, forcing you to keep a close eye on your spending habits. With credit cards you can spend anywhere up to your credit limit without penalty, potentially racking up significant debts.
There are several key advantages of debit cards. The biggest benefit has to be using your debit card to handle your spending without falling into debt or getting shocked by monthly bills you can’t afford to repay. What is more, you are not limited in where or how you shop as you can use a Visa debit card anywhere you see the Visa logo. Debit cards also give you easy access to cash via ATM’s and you won’t get hit with the charges and interest credit cards charge for a cash advance.
Another big plus with debit cards is that they are so easy to get. You don’t have to worry about lengthy application forms or your credit rating. In the current economic climate it can be difficult to get approval on credit cards, so a debit card is an excellent alternative.
Visa debit still has all the positive advantages of a credit card but without the risk of getting into debt. For example, you can use a Visa debit card overseas, just as you can with Visa credit cards. You can also make purchases online or over the phone, all while keeping a rein on your spending.
Debit cards can be a great way to minimise debt but they do have some downsides. One potential pitfall of debit cards is overdrawing on your account. They are not designed as a source of credit and the fees for overdrawing can be expensive, so you need to make sure that you stay within your budget.
The same care should be taken when choosing a debit card as when choosing any financial product. Although there may be no interest charges you need to look at any other fees and charges associated with the banking account your debit card will come with.
Another common criticism of debit cards is that they do not offer the same consumer protection as credit cards. Many argue that if you are defrauded or are demanding a refund, you have a much better chance of getting your money back with a credit card.
While they are not perfect the advantages of debit cards far outweighs any negatives. Visa debit cards are easy to get, inexpensive if properly used and a great way to avoid debt.
