Debit and Credit What is debit and credit? Explain please.

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When it comes to your money, and the way you spend it, you can bring it down to this:

Debit is the money you have already saved in your checking or savings account.  When you shop, if you use the debit option, you are basically taking money out of your "piggy bank" and the deduction shows up sometimes instantly.

Credit is the "never never"- You run the bill, get the statement, and, depending on how good pay you are, they will tell you ways to pay it back. Of course, as you do this, they will charge you on top of it because they need to get paid for keeping your paperwork, so you actually in the end , pay more.

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Debit comes from your bank...directly from your debit card.  It is your money.  Mostly it is free, but in some places there are fees attached to using debit machines that are not in your banik's network.

Credit comes from a line of credit (someone else's money that they allow you to use) from a bank or department store, or even a gas station.  Credit comes with fees, interest rates, etc. depending on the agreement you enter into with the creditor.

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These are generally used in terms of finance, our money. A debit is an amount of money subtracted from what we have. A credit is an amount of money added to what we have.

For instance, if I have $200 in the bank and make a $50 deposit, the bank with credit my account with $50, giving me a new total of $250.

If I have $200 in the bank and write a check for $50, the bank will debit my account for $50, meaning the bank will take $50 out of my account, leaving me with a new total of $150.

Simply put, debit means to "take away" and credit means to "add to." So, when it comes to money, credits are better than debits!

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