Debit May Not Be Best For Credit Card Debt Reduction

Debit card use has continued to grow in recent months, as consumers continue to choose the popular method along with cash and checks over credit cards for their purchasing needs.

Despite this move by consumers, many financial advisers say consumers should be wary of the cards, as they may cause as much debt as credit options.

"We are very clear on that matter. We do not recommend that people use debit cards," Beth Givens, director of the Privacy Rights Clearinghouse, told Reuters. "We think they can be dangerous."

While most debit cards advertise zero liability, they often can't back up these promises as well as credit, the news source says. For example, a lost or stolen debit card set consumers back an average of $3,677 in 2009 and often went undetected for longer than a month.

By comparison, most credit card disputes lasted only 20 hours, the news provider reports. Credit companies will also offer to act as an intermediary between a merchant and a consumer if there is an issue. With debit, cardholders may be left on their own.

Due to recent fee reductions, many experts say debit rewards and services could be scaled back or eradicated altogether in the coming months.