If you are looking to put the brakes on out of control spending habits, financial experts recommend slicing and dicing your credit cards and using a debit card or cash to purchase necessities.
Debit cards make it easy to keep track of spending. Since the card is automatically denied if you don’t have the cash in your account to cover the cost of the item you are purchasing, it’s impossible to buy things you cannot afford.
Unfortunately, debit cards are not perfect. While they may look identical to credit cards, they don’t come with the same features. For example, if you spot a fraudulent charge on your credit card statement, you can simply decline it and not pay the bill. However, if someone swipes your debit card and uses it to buy various items, money is drawn directly from your checking account and you may have a tough time getting reimbursed.
Fraud should always be at the forefront of your mind when you are using a debit card to purchase items. Being mindful of how and where you use the card can go a long way to preserving your bank account and sanity.
According to financial experts, the World Wide Web is one of the most dangerous places to make debit card purchases. Despite the fact that you may have a reputable malware system installed on your computer, your debit card information can still be stolen. In addition, hackers have the ability to obtain your personal information via wireless networks during your transaction.
Restaurants are another hot spot for debit card thieves. Studies show an increase in the number of servers who take customers’ debit cards and run them behind closed doors. The practice is especially common at sit-down eateries and restaurants that offer delivery service and keep customers’ payment information on file. If you are wary about security at your favorite eatery, money experts suggest paying with cash instead of allowing workers access to your debit card.