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Credit cards may still be better option in some cases
By Sam Craine on Apr 28th, 2010
Consumers may be avoiding credit card debt, especially after the recession caused them to go further into debt.
However, a recent story from CNNMoney.com noted there are times that people should still consider using a credit card when making purchases. For example, buying larger items with a credit card may afford consumers additional protections, especially if the purchase goes awry.
Credit card companies will usually fight on behalf of their customers if goods aren't delivered as promised, and the charge is suspended until the dispute is resolved.
"With a debit card, however, the money is gone from your account and you have to wrestle the merchant to get your cash back," the news organization said. "Your bank may help, but there's no guarantee."
Liabilities are also limited on credit card, especially regarding fraudulent purchase. Cardholders are only responsible for $50 in these instances.
However, consumers may not be planning on making any larger purchases in the near future, especially after facing increasing credit card interest rates. Consumers who may be facing higher bills as a result of the recession may consider debt consolidation, which can help by lowering interest rates.
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