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Three reasons why you shouldn’t keep your money on debit cards

Date: February 26, 2024 Time: 20:02:55

Bank credit and debit cards have certain advantages, but also some drawbacks. While the former allow us to pay, even when we do not have a sufficient amount of purchases, the latter are limited to the money that exists in a bank account. Keeping the money in a single account associated with a debit card can be a good idea, but it has its disadvantages.

Each client chooses the one that best suits their needs, although experts warn that there are other types of cards such as ‘revolving’, which can pose a great risk of debt due to their high interest rates.

However, it is very common to hear that it is not good to have money sitting in the bank and therefore it is increasingly common for people to invest a part and thereby obtain extra income from their savings.

Reasons why not keep your money on debit cards

Business strategy consultant and Mexican personal finance expert, Moris Dieck, explains in a Facebook video the dangers of storing all your income on a debit card.

1. Spend it out of control

In the first place, it warns that when a person wants to save and saves all their money in a checking account, they always have that money available, and with it the temptation to use it at any time appears.

For this reason, and the ease of passing a card and obtaining the desired product, Diecka believes that cards generally result in necessary expenses. So beyond banks, the expert bets that people are aware of their finances and have willpower.

2. Invest low risk

The second point refers to yields. In other words, that money that we have in the account does not generate profits or extras, so the consultant assures that allocating a part to an investment account on sight or a fixed-income fund with daily liquidity can make a difference.

Some of these options offer to invest in the lowest risk such as public debt, in this way they will obtain more income little by little and the client can also use it to buy what they need.

3. Victim of fraud

Ultimately, it refers to possible identity theft or falling into financial fraud as well as having our card duplicated. Moris Dieck believes that credit cards are the least likely to recover the available money. While in credit it is easier.

For this reason, it ensures that if the client is a victim of any of these frauds, they can lose everything without the possibility of recovering it. While investment accounts offer greater guarantees and with it benefits.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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