Should I Use Credit Cards or Debit Cards?

Should I Use Credit Cards or Debit Cards?

Many people warn others to stay away from credit cards. Stories of people falling deep into credit card debt are common. However, a lot of this depends on how credit cards are used. Looking at the costs and benefits of both credit cards and debit cards can help you decide which route to choose. If you are struggling with bankruptcy, reach out to a Chattanooga bankruptcy lawyer for help.


There are important differences between debit cards and credit cards to be aware of. Credit cards come with more spending but higher interest rates. Debit cards limit spending to the money you already have but have no interest rates.

Other than fewer spending limits, the benefits of credit cards also include having access to things faster. You can obtain low-cost loans faster. If you need to buy something now but have to wait for your next paycheck, a credit card gives you a way out of this. Instead of waiting, a credit card can let you make that purchase right away.

Certain credit cards come with member perks that may include discounts and cashback. Using credit cards regularly can also build credit fast. The cons of credit cards include:

  • Fees for use
  • Interest rates that increase what you have to pay back
  • Greater temptation to lose track of spending
  • Higher chances of falling deep into debt

Debit cards have the benefit of preventing people from falling into debt. You do not owe anything on a debit card and debit cards do not come with fees. Spending money with a debit card will not lead to having to pay back the money later. The downsides of debit cards are not having the perks of credit cards and being limited to the money you have now.


If you are leaning toward using a credit card, you have several options to choose from. There are several types of credit cards out there, each with different benefits and uses. Rewards cards have the potential to give you 1-2% of the money you spend back. Premium rewards cards offer additional benefits like free airline tickets, VIP airport lounges, and travel insurance.

When you are unsure about credit card interest rates, you can try low-interest credit cards or secured credit cards. A secured credit card uses the money you already have so you have a greater chance of paying back the money before interest builds. Some credit cards are tailored for specific uses like gas cards and retail cards.

Balance transfer credit cards can be used when you want to consolidate credit card debt. These credit cards are designed to help you pay off debt faster, often by offering zero interest rates.


Dealing with bankruptcy alone is not easy. You can call us at Tom Bible Law today at (423) 690-7712 for a consultation about your options for bankruptcy. Our dedicated team of Tennessee bankruptcy attorneys might be able to help you overcome your financial situation. We can be found in the Tennessee cities of Chattanooga and Tullahoma.

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