Using your debit card for everything versus using your credit card may sound like a good idea, but you might not know that there is a downside to using them for everything and that downside is the fact that a lot of banks will now allow you to overdraw your bank account when you make a charge on your debit card.
No one likes to be overdrawn in their bank account because of the overdraft fees and the affect that it has on their credit score, but banks have just made this entire thing much easier by allowing overdraft to occur via debit cards. What they are doing is taking advantage of people who do not like to use credit cards because of the interest that is charged on them every month. Either way, the bank is going to get the money that it wants from the consumer.
If you make a $10 purchase with your debit card, but your account only has $9.54 in it, the charge will go through and it will be the same as if you wrote a check for the item. The bank is completely capable of having your debit card reject the transfer of funds much in the same way that a credit card can be rejected for this reason, but they choose not to because it cuts into their overdraft fee profit.
What most people do not realize is that when you use your debit card, the bank makes a profit because the store that you used it at has to pay a fee to be able to have the card processed. The logic behind this is that the more kinds of credit cards and debit cards that a store can accept, the more business (and profit) it will receive.
If you really want to keep using your debit card for day to day purchases, keep a good eye on what your account balance is to avoid the overdraft fees. Many people have the ability to manage their finances in their head, but if you are not one of these people, it is likely that you will want to check your balance online, if your bank has that option. If you find yourself having problems keeping control of your finances, the solution to this is to simply return to using cash for everything until you learn to manage your money successfully.
