Debit and credit cards are the sources of plastic money. According to statistics, credit card usage is being steadily overtaken by debit cards. Lets examine their pros and cons.
Debit cards allow you to use your cash in hand. there is no credit and no interest rate involved. Credit cards allow you an interest free loan for a period of 30 days from the day of purchase. This means that if you are prompt at paying off your debts then credit card is the instrument for you.
The flip side is that credit cards charge a high interest on delayed payments. Though they offer a greater protection, credit cards are more vulnerable to fraud. The flip side to using debit cards is that there is very little protection for fraud and no incentive for usage.
