Question

A checking account has cash that you can use at your disposal. So, when the pharmacist asked “Cash or Credit?”, why did you say “debit” instead of either of the other two options?

Answer 1

Answer:

Credit:

Credit is usually less used than the cash and debit. The reason is that credits can help you build high balances, as it help you spend money which you currently don't have, which you may or may not be able to pay by the end of the month. If you are not able to pay by the end of the month, interest charges will be applied, and your financial hardships will easily grow.

If you have a checking account with enough cash, you simplify don't need to go for credit to avoid such a situation.

Cash:

The use of cash is reducing day by day. The main reason is that you have to decide before leaving the house how much cash you should carry. If your wallet gets lost, money is gone. If you are at a shop and your money falls short, then you'll have to go to an ATM to withdraw some more. This may seem a lot of hassle for some, and to avoid that people prefer to go for Debit.

Debit

Debit is considered the most friendliest way of transaction.

You don't have to worry all about the interest rates and the bills you get at the end of the month by using Credit, because you are using your own money from your current account to pay for purchases.

You also don't have to worry about carrying cash with you all the time. If your debit card gets misplaced,  just report it and block it. You won't suffer any financial damage