In the last lesson, we looked at credit card debt and how much interest you can end up paying. Credit cards are one of the best financial tools out there if you pay your balance in full every month, and one of the worst if you don’t.
Debit cards are somewhat similar to credit cards. But there’s a big difference in how you pay for purchases. With a debit card, the bank isn’t fronting the money to the store where you make a purchase. The money comes right out of your checking account. There are no grace periods; usually the money is taken out of your account within 24 hours.
[Read more…] about Financial Literacy #9: Credit Cards vs. Debit Cards