Debit cards are a popular and convenient way to pay for your purchases, but they also come with some risks and limitations. Debit cards are not a form of credit, but a form of cash. They are linked to your checking account, and they deduct the amount of your purchase from your balance immediately. Debit cards can help you to:

• Control your spending, as you can only spend what you have in your account, and avoid debt and interest.
• Track your transactions, as you can see your purchases and withdrawals on your bank statement or online account.
• Avoid fees, as debit cards usually have no annual fees, and may have lower or no foreign transaction fees.

But if you use debit cards unwisely, you can face some drawbacks, such as:

• Overdraft, as debit cards can allow you to spend more than you have in your account, and charge you overdraft fees or penalties.
• Fraud, as debit cards can be stolen or compromised, and expose your account to unauthorized charges or withdrawals.
• Loss, as debit cards can be misplaced or damaged, and prevent you from accessing your money or making purchases.

So how do you use debit cards wisely? How do you make the most of your debit cards without falling into overdraft or fraud traps? In this blog post, we will walk you through the seventh and most practical step of your financial journey: making sure you’re using the right debit card.

Why do you need to make sure you’re using the right debit card?

Making sure you’re using the right debit card is not only about choosing the best debit card for your needs, but also about using it responsibly and safely. It helps you to:

• Save money, as you avoid overdraft fees, interest charges, and foreign transaction fees.
• Protect your account, as you prevent fraud, identity theft, and unauthorized charges or withdrawals.
• Access your money, as you ensure that your debit card is accepted, functional, and available.

How do you make sure you’re using the right debit card?

Making sure you’re using the right debit card is not hard, but it does require some discipline and caution. Here are some tips to help you:

• Review your debit cards. You need to have a clear picture of how many debit cards you have, and what they are. You can use your bank statements, online accounts, or apps to review your debit cards and their details, such as the name, the number, the expiration date, and the PIN.
• Evaluate your debit cards. You need to decide which debit cards are worth keeping and which ones are not. You can use some criteria to evaluate your debit cards, such as:
  • Cost. How much does it cost to use the debit card? For example, how much overdraft fee do you pay, how much ATM fee do you pay, or how much foreign transaction fee do you pay?
  • Benefit. How much benefit do you get from using the debit card? For example, how much cash-back do you earn, how many rewards do you get, or how many discounts do you enjoy?
  • Suitability. How well does the debit card suit your needs? For example, how widely is your debit card accepted, how secure is your debit card, or how convenient is your debit card?
• Choose the right debit card. You need to choose the best debit card for your needs, based on your spending habits, preferences, and goals. You can use some categories to choose the right debit card, such as:
  • Standard. This is a debit card that works like a check, and deducts the amount of your purchase from your checking account immediately. This debit card is simple and easy to use, but it may have overdraft fees or ATM fees.
  • Prepaid. This is a debit card that works like a gift card, and deducts the amount of your purchase from a preloaded balance. This debit card is safe and convenient, but it may have activation fees or reload fees.
  • Rewards. This is a debit card that works like a credit card, and offers rewards for using it, such as cash-back, points, miles, discounts, or bonuses. This debit card is rewarding and attractive, but it may have annual fees or minimum balance requirements.
• Use your debit card wisely. You need to use your debit card responsibly and safely, to avoid overdraft, fraud, or loss. You can use some rules to use your debit card wisely, such as:
  • Check your balance regularly, to make sure you have enough money in your account, and avoid overdraft fees or declined transactions.
  • Protect your PIN, to make sure you don’t share it with anyone, and don’t write it down or store it on your phone.
  • Report any issues, to make sure you notify your bank if your debit card is lost, stolen, or compromised, and dispute any unauthorized charges or withdrawals.

Making sure you’re using the right debit card is the seventh and most practical step of your financial journey. It helps you to use debit cards wisely and enjoy their convenience without their risks. By following these tips, you can make sure you’re using the right debit card effectively and safely.