When you buy something and pay with a credit card, you promise the store that you will pay for your purchases at the end of the month. Actually you are promising the store that your bank will pay for it at the end of the month. In other words you buy something with a credit card , a bank will pay for your pucrases even if you don’t have any cash in your pocket.
The problems with credit cards: the bank charges you a fee each year for the use of their credit cards and if you don’t pay your credit card in full each month, the bank charges you an extra fee for using their money (penalty and interest)
When you buy something with a debit card, the amount of your purchase is immediately substracted from the money you have in your bank account. Instead of writing a check, you simply hand the cashier your debit card and the amount of the purchase will be automatically substracted from your account. All you have to do is sign your name on the store’s copy of the receipts and enter the amount of the purchase in your check register in order to keep track of how much money you have left in your account.
When you use a debit card, you don’t have to worry about paying fees-unless you buy thins that cost more money than you have in the bank.