DEBIT CARD
1. A Debit card will work like a prepaid card because you will be able to spend only the amount that you have in your bank account, and makes you learn the virtue of saving first and spending later.
2. Getting a Credit card may prompt you to indulge in a spending spree given your young age, and this should be avoided.
3. Also, if you default on your credit card payment, it will impact your credit rating, which may not be good for any future long-term transactions in your name.
4. The other thing to be remembered is that while you may be working and earning now, you might want to quit later to concentrate on your higher studies.
5. If this is the case, paying your outstanding amount will become a nightmare, and you may have to borrow too.
6. To avoid this situation, you should have a credit card only when you are able to generate a surplus amount from your regular income.
CREDIT CARD
1. A Debit card is a cash card and does not provide any credit facility, while a Credit card tends to make you spend beyond your means, hence advisable only if you can control your spending habits to the amount you can pay yourself.
1. A Debit card is a cash card and does not provide any credit facility, while a Credit card tends to make you spend beyond your means, hence advisable only if you can control your spending habits to the amount you can pay yourself.
2. It must be remembered that if you spend more than your payment capacity and default even once, you will have to pay a heavy interest and penalty.
3. You should also try to pay the full amount (and not minimum amount) by due date in order to avoid any levying of interest.
4. It is also important to see the bank account as a record of income, which needs to be preserved and used in all financial dealings in the future.
5. Linking all utility payments (phone and electricity bills, rent, etc.) to the bank account will help reduce delays, keep an account of expenses and reduce cash usage.
6. Using the credit card to spend and make purchases ensures that they get recorded in the bank statement.
7. In this age, when making a budget is out of fashion, it is important to convert the bank statement into a statement of personal earning and spending, which can be used efficiently to evaluate one’s financial habits.
8. Keeping a credit history that is steady, verifiable, and good, will make it easy for you to take loans on good terms from your bank, when there is a need.
9. You should desist from overdrawing your account or delaying payments due in the early days of your money life.