3 Reasons to Use a Debit Card Exclusively

by Jason Unger

What’s the best way to spend your money?

Cash is bulky. Credit cards accrue interest. Checks are totally out-of-date.

If you’re looking for an easy way to track your spending and save yourself time, the best choice to use is a debit card. Here are three reasons why.

It’s the Same as Cash

When you use your debit card, the money is coming directly from your bank account.

Unlike a credit card, you don’t owe anyone money — you’re only using the money you actually have. It’s essentially the same as cash.

Since you can’t spend what you don’t have with a debit card, you’re not going into debt or building up a balance that’s accumulating interest.

It’s Easy to Track

When you want to know where your money is going, you have two basic options:

  • keep copies of all your receipts and sort them on your own
  • use a debit card when you spend and track your purchases automatically

Obviously, the better choice is to use your debit card — and make your money work for you. With Automatic Finances, having one debit card/central checking account is the start to making your money do all the heavy lifting.

It’s Convenient

There’s nothing more convenient than paying for everything you have with one swipe of a card.

When the other options are carrying a boat load of cash (meaning it’s not earning any interest for you) or taking the time to write out a check, having a debit card is extremely convenient.

{ 3 comments… read them below or add one }

Louis March 23, 2009 at 12:45 pm

I agree that a debit card makes sense and is very convenient. But if you can be responsible and pay your credit card in FULL every month , you can usually get pretty good rewards with a credit card and not accrue interest fees. With that said, a debit card is still more akin to cash and one has an extra layer of planning with a credit card to make sure they don’t overspend.

Jason Unger March 24, 2009 at 9:16 pm

I don’t have an issue with using a rewards credit card to make most of your purchases — assuming you pay it off in full every month.

Even though personal finance is all about numbers, it’s about habits, too. If you can use a credit card responsibly and not carry balances, then it’s totally fine.

mark November 8, 2011 at 5:06 pm

lol, what a stupid article written by idiots. use a credit card and pay your balance off every day… stop throwing away free money by using a debit card

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