Credit or Debit

According to the 2021 Federal Reserve survey, which payment method is becoming increasingly popular?

• Credit cards

• Cryptocurrency

• Checks

• Cash

What is a major risk associated with using credit cards as mentioned in the video?

• High interest rates leading to debt

• Immediate deduction from bank account

• Less rewards compared to debit cards

• No purchase protection

Which payment method did the video suggest could be psychologically more impactful when spending?

• Credit cards

• Debit cards

• Cash

• Online payments

What type of protection do credit cards offer that debit cards typically do not?

• Higher credit limits

• Zero liability for unauthorized transactions

• Lower interest rates

• Automatic savings

What is the best practice for using credit cards according to the video?

• Using the card for every purchase to earn rewards

• Paying off the balance in full each month

• Only using credit cards for large purchases

• Paying off the balance over several months