I have mentioned this before in the blog but my friends find it so incredible that it remains to be a fact until now that it deserves to be mentioned again… I never had a credit card.

Yes folks, I never had one.  In the 29-year history of Jane’s appetite for the good life, I have never swiped a credit card.  I’ve been offered many times but I willingly turned them down.  Why?  It’s simply because I don’t believe in credit.  At a tender age, my mom taught me not to borrow or rely on other people.  Not to bother a classmate to borrow a pencil or eraser, one way to be accountable for my own.  Growing up, I was an exuberant independent youth.  Most of the time, I still categorize myself that with emphasis on YOUTH, har-har.  Being self-sufficient probably stemmed to managing my own finances early on and my non-dependency on credit cards. 

I’m blessed to have conscientious circles of friends who have sensible spending habits, even if they have credit cards.  But I have heard of friends of friends’ horror stories on credit card bills running to the roof making them run on treadmill of debts.

I believe in spending only what I have already funded for.  Even at this point where I know I’m earning enough (and responsible enough) to warrant whatever I purchase, if it’s hypothetically paid for by credit card, I am just not that comfortable by the idea.  I’d rather settle my dues when I can.  I don’t like owing anyone anything… other than a smile and gratitude.

But carrying cash is not always such a smart idea… especially if we’re talking about a good amount of cash.  It also makes you feel uncomfortable.  It’s less spiffy to flip through rolls of money like a mob gang leader at a posh clothing store.  The ease of using credit cards is the easy breezy way of pulling out your CC, verifying your identification, and signing off on a paper to validate your purchase.  It’s almost effortless. 

Instead of counting mounds of bills, you only need to look at a number on the screen to confirm the amount you’re supposed to pay.  I like the functionality of the credit card but not the angle of arrears.  So how do I marry the two?

I was going around Italy and Spain the past two and half weeks and it was difficult not to have emergency funds available other than cash.  It would have been handy and convenient to have a card. 

In 2004, I tried to get a debit card from an international bank somewhere in Makati but the maintaining balance and service charges were so ridiculous to me then that I didn’t bother anymore.  Good thing I’m learning more and more about Visa Debit card nowadays (for more of Visa’s financial literacy materials visit www.practicalmoneyskills.com). 

A Visa debit card functions just like a Visa credit card but the word “debit” means it’s actually deducting or withdrawing from an actual available fund.  The Visa debit card accesses funds from a checking or savings bank account and work like you were paying with cash. 

The “buy now and pay later” is transformed to a “buy now and pay NOW” model through the Visa debit card.  It’s a great alternative payment method to cash and checks.  Purchasing is made easy with this card that directly withdraws from my bank account and transfers it to the account of the store or business where I completed or validated the transaction.

Of course, it is necessary that I have money in the bank to cover my purchases because I can spend only what I have in my account – the current available fund.  A debit card links straight to your bank account which helps you manage your purchases and it will most likely keep you out of debt.

However, like any responsible adult or young adult, we have to monitor our debit card purchases closely and stick to the budget we have in our account.  Surely I will not be a wild child swiping my debit card here and there without counterchecking my finances.  Otherwise, I might overdraw my bank account.    

Overall, with the ease of a debit card, I still have to be a smart shopper / spender and a good financial manager… which I think I relatively am (okay, I’m just being very humble here… or maybe a few seconds ago).  

I am just happy that, like a credit card, it can be used at the point of sale to pay for purchases at various merchant locations like restaurants, gas stations, lifestyle stores, hotels and airline companies.  I can even wait for airfare SEAT SALES online NOW!!!  I can even go online shopping or buy vouchers in group-buying sites using my Visa debit card.  That’s so swell! 

Benefits of debit cards

• Allows you to make the same kinds of purchases as with credit cards without needing to carry cash.

• There is no APR or interest rate charged.

• There are no monthly payments or debt accrued.  It gives you less trips to the bank.

• Some debit cards offer rewards programs.

• Debit cards can be used in ATMs to withdraw cash just like an ATM card.

Practical Tips When Using Debit

• Keep sales receipts as reference

• Remember to account for any bank fees that may apply

• Review statements carefully. If a cardholder suspects a mistake, he must contact the bank that issued him the card as soon as possible

*Never write down your PIN or pick an easy to guess PIN like your birthday or phone number.

And since Visa is accepted worldwide in more than 200 countries, I don’t have to lug around a thick wad of euros or dollars each time I go abroad.  The recent trip just had me all so paranoid hugging my bag all the time to avert getting pick-pocketed in the tourist sites we visited.  I’ve read a lot about that kind of petty crime in forums.  The best part I think about traveling with Visa debit card is it allows access to foreign currency from Visa-enabled ATMs across the globe, so I can actually withdraw the local money (where applicable) from where my TRAVEL BUG leads me to.      

I have just filled up my Visa debit card application and forwarded it.  I hope it doesn’t take too long to process since I’m excited to have one inside my wallet.  More than just an ATM card, a Visa Debit card actually helps your financial management in terms of budgeting, monitoring funds on deposit and for keeping track of spending.

I shudder at the thought of credit card bills but I truly welcome the accessibility of a Visa debit card.   

—