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debit versus credit cards which one
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should you use and why in today's
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Financial landscape debit and credit
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cards are essential tools understanding
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when to use each can significantly
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impact your Financial Health this video
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will explore the differences between
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debit and credit cards the basics of
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debit and credit cards debbit cards are
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directly linked to your checking account
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every time you make a purchase the money
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is immediately deducted from your bounds
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this makes them a great tool for
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as you're limited to the money you have
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on the other hand credit cards allow you
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to borrow money from the card issuer up
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to a certain limit you'll need to pay
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this money back usually with interest if
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you carry a balce credit cards are more
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than just a payment method they're a
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financial tool that can help build
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credit earn rewards and provide
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additional Security benefits of using
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debit cards debit cards are ideal for
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those who want to avoid debt and stick
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to a strict budget since you can only
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spend what you have there's no risk of
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overspending they're also free from
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interest charges making them a
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straightforward option for managing
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daily expenses however one downside is
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that they offer limited fraud protection
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compared to credit cards why credit
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cards can be powerful credit cards offer
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several advantages especially when used
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responsibly they help build your credit
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score which is crucial for future
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Financial opportunities like securing
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loans or mortgages many credit cards
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also come with rewards programs offering
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cash back travel points and other perks
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additionally credit cards provide
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stronger fraud protection making them a
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safer choice for online transactions and
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travel when to use debit cards debit
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cards are best for everyday purchases
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where you want to avoid debt whether
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you're buying groceries dining out or
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withdrawing cash from an ATM a debit
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card helps you stay within your budget
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they're also useful for those who prefer
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a simple No Frills approach to spending
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when to use credit cards credit cards
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shine in situations where you want to
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build credit earn rewards or need extra
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security they're perfect for larger
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purchases online shopping and travel
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with credit cards you can also take
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advantage of features like purchase
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protection and extended warranties just
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remember it's essential to pay off your
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balance in full each month to avoid
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interest charges common questions can
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debit cards help build credit no using a
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debit card does not affect your credit
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score since it doesn't involve borrowing
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money what should you do if your card is
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lost or stolen for debit cards report
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the loss to your bank immediately to
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minimize potential losses for credit
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cards the process is generally smoother
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with robust fraud protection in place
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are credit card rewards worth it yes but
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only if you use the card responsibly and
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pay off your balance each month
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otherwise interest charges can outweigh
