What Is the Difference Between a Debit Card & a Credit Card?

Video Transcript

"Hi, my name is Peter Repak. I'm the owner of Clear Financial LLC, a debt negotiation company. What Is the Difference Between a Debit Card and a Credit Card? Well, when you first take it out of your wallet and you take a look at them, they both look the same. They do feel the same. But there's a huge difference the two. If you use your debit card, then you use your, basically, you use your cash. It's just like a credit card, you can do to any ATM, withdraw money from it, and you can pretty much use it anywhere today because of the Visa and the MasterCard logo on it. But when we go into a credit card, please keep it in mind, every single time you use your credit card you are paying interest on a top of whatever you have purchased. So the difference between the two, a debit card, you're using cash, you have no interest on what you have used. On a credit card, you purchase. You do get your merchandise, but that merchandise is going to cost you one or twice as much than first your actually thought because of the interest rate that the credit card companies put it on top of it. My name is Peter Repak. I'm the owner of Clear Financial LLC, a debt negotiation company. Thank you for watching."