Monday, June 27, 2011

Debit and Credit.. Which one?


Nowadays paying trend is where people love to enjoy shopping with credit card. I can say that majority of workers in Malaysia have credit card minimum of one. What's about having a credit card? well, we must realised that with a credit card with us, any spending can happen even at the first sight we don't have the desire to. A service always wants benefit from you including their profits, extra charge and else that I do not master about. If you calculate a total amount you have to pay and the total amount that you can spend, actually there are percentage where your payment goes to the bank's profit.

I had a financial planning talk before and we discussed about this matter. I asked a friend of mine which one that she desire to use in her working life next year, either a credit or a debit card. She chose a credit card. When I asked why, she said because it is easier to shop with only to bring a card rather than bring an amount of cash.

How about a debit card? Well, a debit card is basically our bank card that we usually use to withdrawal our money from ATM. Some of official debit card can be use to shop in most of mall nowadays. The different is we need to key in our pin number during payment. 

Do you worry of the risk of lost your debit card? Be brilliant! Set a debit card/bank particularly for your shopping needs. Maybe you can bank in RM500 and below according to your expenses budget per month. You can re-bank in if the money in the bank has been used. No worry for extra charge, percentage profit for other or debt. Save money and practise your ability to budget from now. 

One reminder from the talk says that, never ever apply a new credit card to pay debts for another credit card. Remember! Save your money now for your own future.. ;)

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