Over the past three decades or so since credit cards became widely available they have fuelled consumer spending well beyond the means of most households which has resulted in unrealisted amounts of debt. The global credit crisis has seen this all tumble down and now more and more people are looking to rid themselves of credit card debt and look for alternatives.

If you love the convenience provided by credit cards and don’t want to have the hassle and safety issues created by switching to cash then a Visa debit card may be your answer.

Key benefits of Visa Debit versus Credit

Debt free - Spend only what you can afford: When using a debit card such as Visa debit you are accessing money directly from your main bank account. If you don’t have it, you can’t spend it. This avoids the temptation that credit cards give you to buy items you can’t really afford and then get stung when you see the monthly bill which you can’t repay in full. Visa debit allows you as the user to control your everyday spending and avoid falling into the dreaded debt trap.

No Interest: With a debit card you are using your own money so you won’t be hit with interest payments as you struggle to pay off heavy credit card bills. With a credit card you could be spending hundreds of dollars per year just on interest payments, with a debit card all your money goes on your purchases and you stay debt free by only purchasing things once you can afford them.

Key Benefits of Visa Debit versus Cash

Safety: It’s always handy to have a small amount of cash in your wallet for small every day purchases such as public transport tickets, drinks, snacks and so on but carrying large amounts of cash around everyday can be risky in case it gets stolen or even if you simply misplace or lose your money or wallet. A debit card can be cancelled quickly and easily if stolen and a replacement card provided.

Purchase Protection: When you make a purchase with cash it offers very little purchase protection beyond that offered by the retailer. If you purchase an item that turns out not to be as described and the store won’t take it back then a debit card may offer some protection. Also, in the event goods you pay for are not provided then Visa debit offers the same protections enjoyed by Visa credit card holders. Imagine a situation where you paid a travel agent a deposit for a holiday in cash and then the agent declared themselves bankrupt. If you used cash for the payment then it’s unlikely you will see the money again.

Keep Track: Unless you are very organized and keep a spending diary you may find you lose track of where your money is going. By using a debit card you can keep track of purchases by reviewing your statements and online banking. It’s a fantastic budgeting tool as you can scan your statements and see where your moneys going and where changes can be made.

Acceptance: Visa debit enjoys the same global acceptance as Visa credit cards meaning you don’t have to be there in person to pay for an item. You can buy items online, over the phone and overseas.

If your currently looking to cut back on your debts but still want an convenient spending method then Visa debit may be the right option for you.

Article by Richard Greenwood of Click4Credit.

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