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How’s Business? Use credit, debit cards wisely

In our new era of tougher credit regulations, many Queens residents are adopting frugal spending habits. Many people are on the fence on whether to use their credit or debit card for their cost of living and purchases. There are advantages to both, so the real question is what those benefits are.

A credit card allows you to purchase something interest-free for an allotted grace period. The downside is if you do not pay for your purchase in full, you will acquire a high interest rate attached to your purchase. With a debit card, money is extracted from your account and you do not run the risk of falling behind on a purchase.

Using a credit card will entitle you to rewards and benefits offered by credit card companies: airline tickets, restaurant discounts, money back on purchases, etc. Using a debit card does not give you back points or rewards, but there is no bill to pay.

Credit cards offer fraud and identity theft protection, which allows consumers to dispute fraudulent charges to their accounts. When using a debit card, you could be more apt to be a victim of identity theft with little or no recourse to recoup monies fraudulently taken from your account.

So How’s Business regarding using a credit card vs. a debt card? It depends on the purchase. If you know you are going to pay off an item or service when the bill comes in, use your credit card because you get reward benefits and build your credit. For daily small purchases, use your debit card so you do not get yourself in trouble. Small purchases add up in a given month, which is what can get us in financial trouble.

Contact Joe Palumbo at 516-731-5466 or

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