Credit Cards or Debit Cards During the Holidays
WISN in Milwaukee asks an interesting questions of shoppers and consumer spending experts: Which type of card will you be using this holiday season?
Well, readers, what’s it going to be?
Will you spend now and then pay your credit card bills later?
Or, will you watch your dollars more closely with a debit card?
WISN takes a look at the debate from all aspects, including security. They quote experts from Consumer Reports who highlight some of the stronger identity theft protections offered by credit cards.
While your credit card may offer more protection against fraudulent purchases, if you don’t plan on paying off your balance right away you could be stuck paying for those Christmas presents two or three times over.
That’s why some shoppers prefer to avoid debt all together and spend only what they have with their debit cards.
So what’s the right answer? There isn’t a one-size-fits all solution. You should choose a shopping method that lets you monitor your spending and stay in control of your debt. It doesn’t matter if you’re using credit, debit, cash or a little horse trading.
But if you need a guide, here are some questions to ask yourself before selecting a card to swipe:
If you’re using credit:
- Do you have a plan to repay the charges before interest starts accumulating?
- What types of identity theft and warranty protection does your card offer?
- What is your interest rate and current balance on the card?
If you’re using debit:
- Do you have enough money in your account to fund the purchase without hitting overdraft fees?
- Are you shopping at a secure Web site or store? Could you use extra protection?