Using Debit Cards to Develop Spending Self-Discipline

Banks issue debit cards, and in most cases, their appearance and cost are the same as credit cards. The only difference is that the debit card will not advance your credit cards. In fact, using a debit card is like writing a check without paper. You actually deduct any amount you spend directly from your checking account, depending on how the transaction is actually processed. There are no bills to pay at the end of the month, no accrued interest charges, and no membership fees.

If you don’t have enough money to pay for the transaction, the debit card will be returned for the declined transaction. Banks usually limit the amount of a single transaction that can be processed in a day, ranging from $ 500 to $ 2,000. If you know that you will be using a debit card that exceeds the limit, you will need to get a pre-authorization from the bank, which usually only takes 24 hours. Some banks charge for debit transactions but do not charge for debited transactions.

There are different products on the market with different names. While the most common is still a debit card, your bank may issue a check card or a quick card, but the other name is just a marketing tool used to distinguish one bank’s products from another. Also, there are different types of debit cards on the market.

Your bank can offer you one or more of the following options:

  • Direct debits require a personal identification code or PIN to work properly. With this card, you can withdraw cash from a machine or an ATM.
  • An extended debit card combines a standard debit card with a card that looks and behaves like a credit card. If you’re using a card in an ATM, you still need to use a PIN to ensure cash security. If you use the card as a debit card for store transactions, you also need a PIN to complete the transaction. However, if you’re using the card as a credit card, the signature alone is enough to complete the transaction.


Using a debit card to regain control of your financial future is an easy way to control your own spending. The advantage of a debit card is that you can only spend your money. A debit card does not allow you to claim future US dollars. On the contrary, it limits your spending on current money in your checking account. Impulse purchases are suppressed. When you learn the rules of budgeting and spending, debit cards will seriously limit your overspending ability. Debit cards give you the convenience of credit cards, but you pay on demand. You always know where you are, and there are no puzzling financial costs that will affect your ability to repay debt. Debit cards also provide users with added convenience without having to carry extra cash or checkbooks. Debit cards can be a good alternative to these two types of cards and have the added advantage of being protected by a pin code. If a debit card is lost or stolen, it is more difficult to use than a checkbook, and unlike cash, it won’t go away forever.

Unfortunately, debit cards have some drawbacks to be noted. On the one hand, if you record your transactions unfaithfully, it’s easy to get your bank balance out of control suddenly. In most cases, you can make up for this shortcoming by accessing your account balance via the Internet 24/7. When you withdraw money from an ATM, you must also request the balance. While no interest is charged, debit cards often incur high usage fees. For example, if you use a foreign ATM (an ATM that does not belong to your bank), the bank that owns the ATM may charge up to $ 3.00. Typically, your own bank will charge you for withdrawals from ATMs abroad and match the ATM owner’s fees. You can pay up to $ 6.00 to include a minimum of $ 20.00. Using their own resources requires a high price. You can avoid all costs by only using ATMs owned by your bank.

Finally, the debit card does nothing to restore the credit. If you’ve had credit problems in the past and are working to rebuild your credit by using it responsibly, only responsible use of credit cards can help. Because banks that issue debit cards do not provide credit, they do not report credit institutions’ transactions. Other solutions are very similar to debit cards, such as secured credit cards, that help restore creditworthiness. The thing is, if you’re having credit problems, you won’t be tricked into getting a debit card to rebuild the credit.