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Saving, Managing Debt, and Budgeting

Credit Problems

What is the difference between a debit card and a credit card?

A credit card allows you to borrow money from a card issuer in exchange for paying the provider of the goods or service in full. You must pay off the balance of the purchase in full, plus any interest or fees charged during the statement balance period. A debit card deducts money immediately from an account (usually a checking or savings account at a bank), and therefore incurs no interest payments. The bank then sends you a monthly statement that shows all transactions cleared for the month on the debit card.



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