Credit and Debit Cards
Credit and debit cards have become a common electronic payment instrument. However credit cards are different from debit cards. While a credit card is a way to “pay later” a debit card is a way to “pay now”. When you use a debit card, your money is immediately reduced from your current or savings bank account balance. This means that debit cards allow you to spend only what is in your bank account. On the contrary, a credit card is a form of short-term borrowing from the bank. Indeed, some people find they do not have the discipline to control their spending especially when it is conducted on a credit basis, and thus make the sensible decision to do without a credit card. Therefore, if you are after the convenience but do not want to get into debt, you can use a debit card instead. Please read on!