Amazing! Credit cards have been around for ages and making bucket loads of money for banks, for as long. Due to the recent financial meltdown, consumers are finally realising that spending on credit simply can’t be sustained. When there’s a financial plunge, it’s somewhat challenging to remove yourself from the debt created by credit cards.

The smart consumer now keeps 3 different types of financial instruments in their wallet or handbag – cash, debit card and credit card. Essentially, there’s a place for each one and using them properly will save you money.

Without doubt, credit cards will eventually spin you into a credit spiral and that needs to be curtailed.

Living within your means is acknowledged by the majority of financial industry leaders as the sensible and cost saving approach to start adopting.

With that in mind, let’s check out the benefits between Debit Cards and Credit Cards

Spend what you can afford when using a debit card. Much like cash however it’s in your account instead of your pocket. Temptation is curtailed , to a degree here, since you’re only going to be able to spend what you’re able to afford.
Interest Free spending on a Debit Card. Yep, you’re living within your means, watching what you spend and not paying any interest payments to a bank. That’s a great thing!

Now, what’s the benefits between a Debit Card and using Cash?

Tracking Your Spending should always be a part of your financial planning. Your Debit Card should have a good account keeping web interface so you are able to review purchases whenever you need to. If yours doesn’t, think about swapping to one that does as this function is critical to you avoiding overdrawing the account (obviously, banks like you to do this).
Safeguarding the loss of cash through misplacing it or even theft is a pretty important consideration. Once you lose cash, it’s gone forever. Misplacing your debit card is certainly an inconvenience however they can be cancelled online (and make sure yours can be) and then replaced.
Convenience of having no cash and still being able to make a purchase with your funds inside a debit card is having your cake and eating it. I know I’ve often been out shopping and forgotten to draw out any ‘traveling’ cash. Thank goodness I had my Debit Card to make that bargain purchase.

In a nutshell, Debit Cards are convenient, save you money and keep you out of the credit card debt spiral.