Because debit cards deduct money directly from the cardholder’s bank account, it’s not possible to pile up debt like you can with a credit card. But debit cards are not without risk: Overdraft fees, which card issuers assess when customers spend more than the balance in an account, routinely cost $35 a pop, in some cases adding up to …
overdraft
Debit Cards vs. Credit Cards: Do You Prefer Debt, Fees, or Both?
Debit cards have been presented as the safer alternative to credit cards. A credit card is something of a temporary loan operation, allowing you to buy things with money you may or may not have, creating a situation in which it’s easy to get into debt. A debit card, by contrast, allows you to buy things using the funds sitting in your …
Credit Card Reform: While One Hand Gives, the Other Adds Fees
Significant parts of the new credit card law go into effect today that in theory will make it easier for cardholders to pay their bills without incurring fees, and to avoid digging themselves further into debt. Balancing out this good news is an onslaught of new fees and higher rates that nearly all cardholders can expect coming down the pike.
