Credit Cards vs Debit Cards

Credit cards are the most popular cards these days as they offer a convenient way to manage cash flow and making payment when you don't have the cash in your hand. There are several types of cards such as low rate and zero balance transfer offers.The main theory behind this piece of plastic is that everyone time you swipe your card, money will be borrowed form the bank and you will have a certain time period in which you will be required to pay back the borrowed amount. For the past ten years the credit card was the most popular type of bank cards.

Recent studies show that there has been a sudden and rather sharp rise in the popularity of Debit cards. A Debit card can be described as a electronic cheque book. This piece of plastic allows you to access your own bank account anytime. This means you have no debt whatsoever since it goes straight out of your account.We use this card to withdraw money or to pay for services or goods.

Now for the big question.....WHICH CARD IS BETTER?

Each card has its pro and cons and they both used differently in different situations. Have a look at the table below to further enhance your understanding of the two cards.

	Debit	Credit
Pros	Using your own money, so no temptation to get into debt and have to pay interest No annual fee	Comes with interest free days, so if you pay off in time you will not get hit with interest expense It is a loan that may help your cashflow Extra features on some premium cards, such as rewards, concierge services, free travel insurance, extended warranty.
Cons	Lack of features compared to credit cards	Features come at a cost. Most credit cards charge an annual fee When it is not used properly, may build a never ending debt

Now that you know the details, I'm going to let you decide which cards is better in which situations. Because each card will help you in different situations. 

FACT - Recent figures show that 56% percent of Visa's global card sales volume was made on debit cards compared to 44% on credit cards.