It seems like now people are given a lot of options but lack in much needed education. Yes, we’ve heard their marketing pitches, usually from people who would earn something in return if they’re able to get us on the bandwagon. What these people fail—or intentionally fail—to tell us is the downside of using these plastic cards. However, they tend to exaggerate its “greatness”, sometimes bordering to lies, which sadly, giving us ideas of exactly the wrong things.
Due to poor money management most people practice, and the encouragement credit cards bring to these people, debit cards came along. For a while, it seems to be the safest option since you don’t risk falling into debts. Almost instantly, it gained popularity similar to that of credit cards. Unfortunately, many have realized later that it also has it own pros and cons that a user must consider before getting one. It may even cost you way more than a credit card fiasco could ever bring you.
Personally,–and although I never really had a problem with money management—I think the safest way to spend money is using cash. All the time. My lifelong motto being, if I don’t have that kind of cash in hand, I don’t buy it, not even think about it. So far, it works for me and was able to age gracefully and debt-free. Something I find rare among my generation which is quite saddening for me. Don’t get me wrong, I have had my fair share of credit and debit cards and they all worked great for me. It’s just I often find myself using them just for the rewards or benefits they bring, particularly for my credit score.
Just recently, I have met a new addition to the plastic cards family, it’s called the charge card. I must admit, I don’t have much to go on when it comes to charge cards as I am still trying to get to know it. What I did understand is, charge cards are something like debit card-slash-credit card. It has the benefits of a credit card but at the same time, the control of a debit card. In my honest opinion, it goes a little something like this:  If you are making small payments for your daily living expenses, you reach for a debit card, like issuing a check. The amount you used a debit card for will automatically come out of your savings account in which the debit card is aligned. The danger of this is, you must ALWAYS be mindful of your saving account balance as you can be charged with overdraft fees. Like a check book, you need to balance it everytime you use it. On the other hand, you use charge cards if you need to pay for something that exceeds your daily spending allowance but certainly won’t cause you trouble come monthly due date. As of my understanding, a charge card is supposedly paid in full every month. Use your credit card only when in absolute necessity and you’re certain this purchase cannot be paid in full in a month. Security wise, I find credit cards as the most secure by far but like what I’ve said, I still need to get to know charge cards more.