Aaron explains why direct debits work differently on debit cards. Credit cards give you a billing cycle buffer, but debit cards pull straight from your account. You need to time debits to match your paycheck, or coordinate with others in your household to avoid overdrafts.
Debit cards versus credit cards. Hey, it's Aaron from Diagnostics and Finance. Part one was about can you spend the same way? Absolutely you can. Number two is how do you deal with the direct debit on a credit card? Sometimes it's not really too much of a concern that if the debit comes out on the 2nd of the month and you get paid on the 20th of the month, that probably doesn't really matter too much, especially if you do pay your credit card out or pay some off it during the month. So it probably doesn't matter too much when you have your direct debits on your credit card, but it may make all the difference to you when you want to change it across to your debit card. So if you get paid on the 20th of the month and you've got a multitude of direct debits coming out, it might be best to put those on to the 22nd or even the 23rd of the month so that your timing is accurate to your pay. So in a credit card, you may not have to worry about the timing too much, but you still have to pay that sucker off to prevent paying interest. But if you want to put it on your debit card, think about the timing. Think about when you get paid. Your significant other, wife, husband, partner gets paid as well so that you can time your transactions to that as well. That's tip number two. Bye for now.