Debit vs. Credit cards
Be a smart consumer!
Owing
If you borrow money, you owe some company a debt. Therefore, you will pay back the amount you borrowed (principal) plus interest. Using a credit card is really taking out a loan.
Advantages of Credit Cards
- Safe alternative to cash.
- Builds a good credit history.
- Bails you out of emergencies.
- Gives you time to pay.
- Only an advantage if you pay off the bill entirely!
Disadvantages of Credit Cards
1. Too tempting
2. High interest rates
3. Debt