This season, most of us will have the option of using debit or credit to pay for our spending, but which option is best? Before you embark on a shopping trip to buy gifts and festive must-haves, consider your personal finance situation and which option is best for you.
Using debit means you're only spending money you have now, which can make it easier to stick to a budget. It can also help you avoid going into debt so you're not stuck paying off a large balance at the end of the month or any interest charges for late payments.
"Carrying only your debit card is a good option, especially if you're easily tempted to make impulse purchases," says Cait Flanders, author of personal finance blog Blonde on a Budget. "You can't spend money you don't have, so it forces you to have discipline and not splurge on something you'll have to pay for down the road."
On the other hand, using credit also has its advantages, but only if you use it wisely and pay your balance off in full and on time. One of the biggest advantages is that most credit cards offer rewards for the money you spend.
However you spend this season, make sure you give yourself the gift of making wise financial decisions and keeping your budget top-of-mind.
