While many people rave about the benefits of credit card rewards, few people utilize the perks associated with their debit cards.<\/p>\n Debit cards are usually issued by your bank or credit union for free when you open a checking account and come with many of the same benefits as credit cards<\/a>. Better yet, they deduct money straight from your account, ensuring you stay on budget with all of your purchases.<\/p>\n See the List: GOBankingRates\u2019 Best Banks of 2023<\/a> While there is definitely a time and place for credit cards, you shouldn\u2019t abandon your debit card altogether. There are several purchases that should be made using debit, particularly if you struggle with overspending.<\/p>\n We asked experts from around the world to weigh in on when using a debit card outweighs using a credit card. Here are the five payments they said you should always make with your debit card.<\/a><\/p>\n Most of our experts agreed that debit cards come in handy for everyday purchases such as gas and groceries.<\/p>\n \u201cUsing your debit card to pay for groceries and gas can help you stay within your budget and avoid overspending,\u201d said Matthew Robbs, founder of Smart Saving Advice<\/a>.<\/p>\n Ifrah Saleem, financial writer and founder of opulentstars.com<\/a>, agreed.<\/p>\n \u201cThe reason for this is that debit cards are linked directly to your checking account; and, when you make a purchase with your debit card, the funds are immediately withdrawn from your account,\u201d Saleem said. \u201cThis can help you stay on top of your spending and avoid overspending or accruing credit card debt. Additionally, some debit cards may offer cashback or rewards for certain purchases like gas or groceries.\u201d<\/p>\n \u201cAny debt payments should be made with a debit card only,\u201d said Crystal Evans, content manager at Quick Loans Express<\/a>. \u201cFor example, loan repayments \u2014 especially high-interest loans \u2014 should only be made using a debit card. This is especially if the interest rate on your credit card is higher than the interest rate of the loan. If you pay off a loan using a credit card, you are effectively paying off your debt whilst creating more debt.\u201d<\/p>\n Credit card debt is really easy to get into and really hard to get out of, so avoiding credit cards is best unless you can pay them off each month. One area where people can get into real trouble is when they withdraw money from their credit cards.<\/p>\n According to the Consumer Financial Protection Bureau<\/a>, while \u201cyou can withdraw cash using a credit card \u2026 it is expensive to do so.\u201d<\/p>\n Most credit card companies allow you to do a cash advance, but the fees are enormous. They also can charge a higher interest rate for the advance compared to normal purchases. Unless it is an emergency, it is best to use your debit card to get the cash you need straight from your checking account.<\/p>\n Using a debit card instead of a credit card is also a good idea for almost any purchase due to high interest rates.<\/p>\n \u201cWhen you use your credit card [and do not pay the balance], the credit card company charges you a fee for using the card,\u201d said Adam Pippington, CFO of Freedom Dividend<\/a>. \u201cThis interest rate can be as high as 25% for some credit cards. When you use your debit card, you do not have to pay this interest rate because the money is coming directly out of your bank account.\u201d<\/p>\n Merchants also can charge fees for credit cards. Small companies and overseas businesses may hit you with an additional 2% to 3% charge simply for using your credit card. Ifrah Saleem also cautioned that \u201ccredit card transactions may come with additional fees such as foreign transaction fees if used in international places.\u201d<\/p>\n Robbs also recommends using your debit card for small discretionary purchases.<\/p>\n \u201cUsing your debit card for small purchases, such as a cup of coffee or a snack,\u201d he said, \u201ccan help you easily meet the minimum number of purchases that many banks require for you to keep your free checking \u2014 or to earn interest on your money that is in checking.\u201d<\/p>\n So, the next time you go on a coffee run or want to buy a handmade pair of earrings from a local vendor, think twice before whipping out your credit card and consider the advantages of using your debit card.<\/p>\n More From GOBankingRates<\/em><\/strong><\/p>\n This article originally appeared on GOBankingRates.com<\/a>: Experts: 5 Times You Should Always Use Your Debit Card<\/a><\/p>\n<\/div>\n\n whyframestudio \/ iStock.com While many people rave about the benefits of credit card rewards, few people utilize the perks associated with their debit cards. Debit cards are usually issued by your bank or credit union for free when you open a checking account and come with many of the same benefits as credit cards. Better …<\/p>\n","protected":false},"author":1,"featured_media":44929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/44928"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=44928"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/44928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/44929"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=44928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=44928"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=44928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Also Check Out: GOBankingRates\u2019 Best Savings Accounts 2023<\/a>
Good Question: Do You Have Too Much Money in Your Checking Account?<\/a><\/em><\/strong><\/p>\nFor Gas and Groceries<\/h2>\n
For Debt Payments<\/h2>\n
To Get Cash<\/h2>\n
When Fees Are Higher<\/h2>\n
For Minor Purchases<\/h2>\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"