credit card vs. debit card

CREDIT CARD VS. DEBIT CARD Although credit cards and debit cards are both widely used with majority of the population, their methods, rules and fees are very similar. While credit cards tend to get a lot of people into debt because it is harder to keep track of you spending balance, debit cards are an easier way to keep track of your spending much like having cash on hand. Both credit cards and debit cards provide a convenient alternative to cash, especially if you do a lot of shopping online (BARRETT). The similar aspects of credit cards and debit cards make it difficult for someone to decide what the best card to use is. With credit cards it is not needed to have money available on the card at the time of purchase. When you sign up for a credit card you have to agree to pay the amount you “borrow” back, plus interest fees obtained on the amount you owe (Lindsey). The organization pays the seller the amount you spent on the credit card and you pay the organization back. Credit card companies often have different options to pay the amount owed back, like monthly or all at once. Using a debit card is like having cash in your pocket minus the inconvenience of keeping up with all the bills and coins. A debit card works great when you are traveling and cannot have large amounts of money in your possession. A debit card is linked directly to your bank account. In most cases, the person using the debit card knows exactly how much money they have available to spend. Also there are different rules for every bank issuing debit cards. Some banks will charge a set amount for using an ATM that does not belong to the specific bank that issued the card, so be aware of the extra charges. Much like a credit card charges interest fees, if there is no money in your bank account you can accumulate overdraft fees. For example, most popular banks charge $35 per item for NFS (non-sufficient funds) and overdraft