Debit cards

Your debit card is attached to your checking account. When you “charge” something on your debit card it is automatically deducted from your checking account.

Benefits of using a debit card

• Don’t owe money
• Don’t have to pay high interest rates of credit cards
• Convenient
• Don’t have to carry around cash or a checkbook
• Easier to get than a credit card
• Readily accepted almost everywhere in the world

Disadvantages to using a debit card

• You need enough money in your bank account to cover each purchase
• You have less protection. If something goes wrong your bank won’t protect you if your item is never delivered or doesn’t work.
• If you don’t keep track of every debit card purchase you may drop below your minimum balance or overdraw your account. This can lead to hefty fees.
• If your debit card is lost or stolen you have much less protection then with a credit card.