Avoiding Debt With Visa Debit
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. Credit cards allow you to live beyond your means and spiral into debts you struggle to pay back; debit cards force you to live within your means by only allowing you access to money you have already.
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. So you don’t run out of funds, relying on a debit card makes you keep track of your spending as you go and adjust 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.
A further advantage is how easy debit cards are to get compared to credit cards. You don’t have to worry about lengthy application forms or your credit rating. Most of the banks have seriously tightened up their lending criteria for credit cards so debit cards are a great option.
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 still get the conveniences of doing things such as being able to shop online while controlling 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.
Debit cards are often accused of not offering the same level of security and consumer protection as a credit card but Visa does back it’s debit cards with similar protection systems. The usual argument on this would be to say you have a much better chance of demanding a refund or avoiding paying the costs of fraudulent use with a credit card.
However, considering the convenience and advantages that debit cards offer, these are minor criticisms. Visa debit cards are easy to get, inexpensive if properly used and a great way to avoid debt.
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Tags: Debit Card, Visa Debit Card