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Should you pay with debit or credit? This is a hard question to answer. I used to pay with debit for a single reason. I don’t have a credit card and I prefer to pay by cash. I don’t like entering the PIN, since I don’t feel it is secure. I feel it is more risky than having lots of money in your wallet.

Then I got my credit card. At first I still pay with cash. But one day, I learn that I should be using credit card to take advantage of the reward system. But the most important thing is I will know how much money I spend each month from the monthly billing. From that monthly report I can analyze my spending. I can compare it with last month report. That way I know if I need to stop spending money. But in this credit card article, it says that using credit card will make you spend more. According to the article, Dave Ramsey has noted people using credit cards typically spend over 10 percent more than they would have otherwise. I think that might be true for most people. For me who hard to spend using credit card does not make me spend more money.

The article also said that by using debit we will help small business. If we use credit card, then small business will have less profit because the bank charge fee on them. So if you want to help small business in your community you should pay with debit.

Anyway it is up to you whether you want to choose debit or credit. Remember to always pay 100% of your credit card debt in the end of the month if you prefer credit card. You can ask your bank to auto pay your credit card debt since it is easier for you. So you do not worry to forget paying your debt.

Why do people use plastic money or credit cards as they are called? Because most items can be purchased by using credit cards.

Credit cards can be classified as standard, secured, business, entertainment and so on. There is a long list of credit cards available in the market. You should http://www.compare2save.com.au/ which have flooded the market before you apply it. There are a couple of variable you need to watch: balance transfer rate, annual fee, and most important interest rate. Here are the best credit card that I found using http://www.compare2save.com.au/credit-cards/.

The St.George Vertigo Card has a balance transfer rate of 2.99% with an annual fee of $55 and an interest free period of 55 days. It has interest rate of 10.99% per annum.

The Aussie Mastercard has a balance rate of 4.99% with a year of balance transfer period. The annual fee is 49$ and with 55 days of interest free period. You will enjoy 11.49% of interest per annum with this plastic money.

Another feather in the cap is the ANZ Low Rate Mastercard. The privileges that you would enjoy with this card is 0% balance transfer rate, 6 months balance transfer period and an annual fee of a meager $58 and 55 days of interest free days. The rate of interest is 11.74% per annum.

CBA Low Rate Card also qualifies the criteria for ‘best credit cards’. The balance rate of 4.99% with a balance rate of 9 months and an annual fee of $48 with 11.74% rate of interest per annum. You will enjoy 55 days of interest free period.