Use Your Credit Card First, Your Debit Card Second

When it comes to everyday purchases most of us pull out our bank debit card first. But is using your debit card actually better than using you credit card?

I think so. Let me explain. First of all, there’s no getting away from the fact that debit cards are convenient. They are easy to use and are cheaper than writing a cheque. (Besides who writes cheques anymore?) Plus, you don’t have the hassle of making sure you have an adequate amount of cash on you for whatever it is you wish to buy. That said, you’re also taking money right out of your bank account and putting it into someone elses.

I’ll be honest and upfront with you…I don’t use a debit card. I prefer cash transactions. I take out all the money I need and the beginning of each month and then budget it. That way, I am always in control of how much I spend and there are no hidden service charges like the ones that would charged each time my debit card was used.

In my opinion, debit cards are too convenient – it’s a painless transaction. Granted, credit cards are also a painless transaction. That is until the bill comes in. However with credit cards you have that ‘grace period’.

Using actual cash in my view is the best way to go. You spend what you have and can’t spend what you don’t (like the money that was sitting in your bank account to pay your bills later in the month). With debit cards it’s so easy to overspend. It may be just one purchase here and another extra expense there -but before you know it, you can easily find yourself short at the end of the month.

Setting spending limits is always wise whether you use your debit card, cash or your credit card on a regular basis. As long as you have the money available to pay off your credit card bill when it comes in I don’t see any harm in using it.