7 Reasons why Debit Cards Can Help You Save Money — The Kind Tips - Tips for Life, Study, Work and Entertainment

7 Reasons why Debit Cards Can Help You Save Money

7 Reasons why Debit Cards Can Help You Save Money

Although a debit card is very similar to a credit card when you use it, the difference is the payment goes out of your bank account immediately with no pending or waiting period. The money is then electronically withdrawn from the bank account. Debit cards have many advantages over credit cards and checks, and probably the most outstanding one is you can save some money with it.

1. Use the “credit” function of your debit card.

When you are purchasing and swiping out your debit card, you have the right to tell the salesperson that you’d like to make it a “credit” transaction instead of a debit purchase. Still, the money get withdrawn immediately, but you will not be charged with the debit card fees.

2. Debit cards to replace checks.

When you purchase with your debit card, you don’t need to use checks to pay. One check can cost around 27 cents, hence you can save dollars after several transactions.

3. Use debit cards for monthly bills and daily purchases.

If you need to mail your checks back to pay for the monthly bills, you will have to buy envelopes and stamps. However, if you can pay the bills with debit cards, you can save the money for both checks and postal stuffs. You can also use debit cards for your daily purchase and some debit cards have similar cash back reward like credit cards.

4. Just use your bank’s ATMs

If you withdraw money from the ATM of another bank, you will be charged for several bucks. To avoid such cost, you should just use your debit card at your bank’s ATM to withdraw cash.

5. Using debit cards can avoid the bouncing checks and overdraft fees.

When you pay with your check and there is not enough funds in your check account, it will result in a bouncing check and overdraft fees will be applicable for this transaction. If you use your debit card instead, you will be denied for insufficient funds and you can change to another card and you will not have to pay the extra fees. Some banks allow you to tie your check account with your saving account or provide overdraft protection service to keep you from paying such fees.

6. Pay bills by phone.

Sometimes you forget to send the check in time, but you still have the chance to avoid the late fees. You can pay your bill by phone and the bill will be paid immediately from your checking account. Please keep in mind that some companies do charge you for paying on the phone, so make sure to read the terms and rules before you do so.

7. Learn financial discipline and keep in good financial manner.

By using less credit cards and more debit cards, financial discipline can be learned through practice and it will help you keep in good financial manner. Understanding the purchase you are about to make will directly deduct your funds from bank account lead to double thinking about whether you really need the item and hence, some unnecessary or impulse shopping can be effectively avoid.

*Image source: http://www.nydailynews.com/news/money/debit-cards-offer-rewards-consumers-move-credit-cards-smaller-banks-article-1.149596.

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