In the debate over whether debit or credit cards reign supreme, there may never be a tidy conclusion. Some financial experts champion credit cards as the best payment method, citing their superior rewards and benefits and heightened fraud protection. Others say debit cards are the way to go, especially for certain types of spenders. “Some folks just don’t do well with credit cards,” says Alan Moore, a certified financial planner with offices in Milwaukee, Wis., and Bozeman, Mont. “They lose track of their expenses and seem to always be in debt.”
Ultimately, the answer depends a lot on your financial personality. If you have firm control over your spending and pay off your card balances every month, you may want to pump a credit card for optimum benefits — the grace period you get before you have to pay the bill, plus the rewards tied to some cards. For people who are digging out of debt or prefer firmer spending limits, a debit card supplies a dose of discipline. And if you fall somewhere in the middle, you can tailor a payment strategy that uses the advantages of each. You may even find that a prepaid debit card has a place in the pantheon of plastic.
Written By: Lisa Gerstner. If you would like to continue reading, click here.
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