'Credit cards are sugar-coated poison'

We asked Get Ahead readers to send in their opinions on the credit card vs debit card debate. Here's their take on the advantages and disadvantages of credit and debit cards:

Disciplined payments can help you reap rewards

I am using credit card for last 11 years. One of the most important thing is to know how much can you pay. Then spend according to your capacity. I have always paid the dues on time which has led me to accumulate lot of rewards points. Here I would like to point out exceptional returns on spending on Titanium card of HDFC Bank.

This card gives 2 points -- I hope I am right -- for every Rs 100 above Rs 10,000. So I purchase everything including paying my telephone bills and insurance policies and pay through credit card. Also I give ECS mandate to ensure timely payment and no chance of penalty.

As far as debit cards are concerned whereas there is advantage of direct debit from your bank account; there are no reward points to make use of. Therefore if you can contain your urge to splurge it makes sense to use credit card judiciously.

-- Ajay Yadav

Beware while making payments through credit cards

The most important fact about Credit card is that once you sign any kind of contract with a supplier for regular monthly payments, then you as a user and a holder of credit card will not be able to stop the payments by just contacting your Credit card supplier. 

It is the supplier of services that can cancel the contract. This happened to me when I cancelled a contract with an Internet service provider. They still continued to charge my account. The credit card would not initially stop the payments. It was a long struggle to get the money back from the Credit card company.

Strange but true. With Debit card you can inform your Bank to stop payments with immediate effect.

-- Dhiru Galani

Both have certain pros and cons

Both have certain advantages & disadvantages ie Debit Card is advantageous for the purpose of secure payment, no botheration about interest, ATM facility etc. While it has major disadvantage of immediate debit from the account, Credit card has advantage of getting relief of credit period but in case of delayed/ non-payment the rate of interest is heavy.

However, one question still remains unanswered ie why seller's offers benefits to credit card holders than to debit cardholders?

-- Sanjeev Agrawal

Do not enter the credit card trap

Credit Card is sugar coated poison. Once we enter into its trap it is very difficult to come out of the vicious circle. This tempts to purchase more especially with its discounts / offers and payment mode of EMI's. Better not to enter the trap.

If you use wisely things will be okay. But the temptations and offers like pre-approved loans etc. will make you really 'sick'.

Debit card will be the ideal one if it is used carefully.

-- Polly Varghese Alappat

Disclaimer: This is a reader-driven feature. The views expressed by the readers are their own, and not that of Rediff.com. Rediff.com has not altered the material presented here and does not endorse it in any way.