As you approach the checkout counter you will have to make one big decision: are you going to pay with credit or debit? Hopefully you know what is best for you and the purchase you are making. If you don’t, you may end up making a bad decision and regretting it.

There are pros and cons of both options. Those who can afford to pay off their credit card balance in full usually don’t have a difficult time relying on this option. On the other hand, if you don’t have the money to pay in full in the future you may want to avoid using a credit card – this can lead to mounting debt.

The benefit of a debit card is that you are more or less paying with cash. The money comes directly from your checking account. There are two possible downsides to this. 1. Does your bank charge you when you use your debit card at particular stores? If so, this can become annoying in a hurry. 2. You do not collect reward points when you use a debit card. This is something you may get with your particular credit card.

For most, using credit sometimes and debit at others is the best option. If you carry both cards you always have a decision to make. Once you settle in with a system that works you can spend the right money on the right items. In the long run this will greatly benefit your finances.

Similar Posts:

• Benefits of a Business Credit Card
• NetSpend Prepaid Visa or Mastercard
• Be in a Hurry to Pay your Credit Card Debt
• When to Cash in your Reward Points
• Emily’s list: Prepaid debit cards edition