Anyone who is trying to get out of credit card debt or rebuild their credit likely wonders exactly when it is appropriate to use a credit card and when it is appropriate to use a debit card. In some cases, the question pertains to transactions using one type of card that can be processed as either type of transaction. In any case, it is important to understand how to properly use these types of card to ensure that you are protecting your financial future as much as possible.
For people who tend to overspend, a debit card might be the best payment option because you usually are limited to the amount that is in the linked account. A debit card is also the better option if you will need cash because you can just stop at an ATM for cash using your debit card.
If you are a member of a rewards program with your credit card that allows you to earn points on purchases you make regularly, using the card linked to the program might make sense. Your credit card is also a good option in instances that might lead to fraudulent charges. It is important that you only use a credit card for amounts that you can pay back at the end of the month, especially if you are trying to rebuild your credit history.
Even someone who makes good financial decisions might discover that they have more credit card debt than they can handle. If you have made that discovery, you might be able to seek relief from that debt. Seeking the advice of an experienced Wisconsin bankruptcy attorney might help you to learn about the available options.
Source: GreenBayPressGazette.com, "Credit vs. debit: Which card to use and when?" Joe Slattery, Feb. 21, 2014