|
Proper Spending > Buying and Spending Habits > Debit Cards (1) Debit cards are effective for consumers because they provide the convenience of electronically deducting purchases directly from their checking account. This process removes the hassle of writing a check, presenting identification and providing personal information. Debit cards are linked directly to the consumer’s checking account and the full amount of each purchase will be deducted directly from the account. Depending on the kind of debit card a consumer uses, the funds will be deducted from the account within three business days of the day on which a purchase is made. Some debit cards are “on line” and take the funds out of an account at the time of the purchase and others take a few days to “clear” the account, much like a personal check. Utilizing a debit card is an effective way of dealing with impulse buying because it enables consumers to pay immediately for purchases that are made with the card. Paying immediately defeats the bad habit of procrastinating on repayment, which enables consumers to avoid the cumulative high interest charges associated with borrowing from credit cards. |
|
|