From childhood, I’ve wanted to make a living as a writer and storyteller, but when I decided to forego formal education in favour of doing so, I rapidly learned that freelancing does not provide a secure income. This was why I worked as a waiter on the side to supplement my income.
As I had never worked in customer service before, I had much to learn. In the beginning, it was exhausting to be on my feet for so many hours every day, dealing with a seemingly never-ending stream of customers. After I figured out how to handle the challenges of my profession, I discovered I actually liked the hectic atmosphere.
The people I talked to daily were the best part of my work. Sharing their experiences and conversing with them was a delight. Several regulars even learned my name and started coming up to me to ask for my menu suggestions.
Without a doubt, there were also challenging times. While dealing with customers, I had to learn to keep my cool and act professionally, even when they were nasty or impatient. Yet, I realised that working as a server provided me with excellent practise in interpersonal communication, time management, and customer service.
I enjoyed my time as a waiter, even though I finally left the service business to return to freelancing full-time. That was an unforgettable experience that changed my life for the better.
A debit card and a credit card, what’s the difference? Being confused by these two spending tools is common and it’s easy to see why. Many locations accept both credit cards and debit cards. Both provide convenience and do away with the need for carrying cash. They even share the same appearance. In this article, we’ll explain on the differences and advantages and disadvantages of each card.
What is the difference between credit cards and debit cards?
Where the cards draw the money from is the primary distinction between a debit card and a credit card account. A credit card charges your credit line, whereas a debit card deducts money from your checking account.
With a credit card, the cardholder can borrow money from the card’s issuer—typically a bank or financial institution—up to a predetermined limit in order to make purchases or withdraw cash. Then, at a later time, the cardholder is accountable for paying back the borrowed money together with any interest or fees. Credit cards are frequently used as a practical means of making transactions. If used appropriately, they can also be utilised to establish credit history. Credit reports are used to assess creditworthiness and contain information on purchases made with a credit card.
On the other hand, debit cards are payment cards that are connected to the checking or savings account of the cardholder. When using a debit card, transactions are completed instantly, and money is instantly sent from the cardholder’s account to the merchant. Debit cards can be used to get cash from an ATM as well as make purchases at businesses that accept them. The cardholder can use them as a budgeting tool by just spending money that is available on their account. They don’t assist in establishing credit history because they are often not connected to a credit account.
To know if whether a credit card or debit card is for you depends on your individual financial situation and goals.
If you are trying to build or maintain good credit, using a credit card responsibly can help. However, if you are trying to control your spending, a debit card can be a better option as it is linked to your checking account, allowing you to only spend what you have.
Here is a breakdown of the advantages and disadvantages of a credit card and a debit card.
Advantages of credit cards:
Using credit cards to make purchases is practical and can help establish credit history.
On purchases, several credit cards give rewards or cash back.
Consumer protections are also provided by credit cards, such as the option to dispute charges in the event of fraud or a fault with a transaction.
Disadvantages of credit cards:
It can lead to debt if not used responsibly.
The interest rate is high.
Credit scores might suffer if credit cards are misused.
Advantages of debit cards:
With debit cards, you can only spend what you have because they are directly linked to your bank account.
They may be helpful for budgeting and controlling spending.
Disadvantages of debit cards:
The money in the associated account may be in danger if a debit card is lost or stolen.
Unlike credit cards, debit cards frequently do not provide the same level of consumer safeguards.
Some debit cards have additional costs, including those for using an ATM.
The ideal option for you will ultimately rely on your unique situation and aspirations. Understanding the card’s terms and conditions, fees, interest rates, and rewards is crucial, as is using it wisely.