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Thanks to the constant stream of credit card offers you receive in the mail or through television few people understand that there are viable alternatives. Below are five of those alternatives.

1. Debit Cards
Debit cards have been used in many European countries for a number of years, but are relatively new elsewhere. In a nutshell, they are just like credit cards and are accepted in most places where credit cards are accepted. The biggest difference is that they take money directly from your bank account rather than you getting a bill at the end of the month. However, you should be aware that you arent as well-protected from fraud with a debit card as you would be with a credit card. Another way to describe a debit card would be to call it an electronic check.

2. Pre-Paid Credit Cards
These cards work just like credit cards, except that you’re not allowed to carry a negative balance. You deposit money into your card account before you can spend it which means that you top-up the card… like you do with pre-paid cell phones. This is great way to control your spending or you could give one to a child to control their spending. They are also safer than debit cards, if stolen because the their could only spend whatever money was on it.

3. Bank Overdrafts
Bank overdrafts used in conjunction with a credit card, can be a far better way of borrowing money than using a credit card. Your overdraft limit is set by your bank according to how much you deposit into your account each month. You dont need to pay it off until you want to.

It gives you the ability to have your account go into the red or negative numbers. Many banks charge relatively high interest rates for overdrafts, but rarely as high as a credit card companies and the better customer you’re considered the better rates you’ll receive from your bank.

4. Traditional Loans
When you plan on purchasing a single big item at a fixed price – like a car or for home improvements its worth budgeting it all out and going to a bank or other type of lender. Theyll be able to lend you the money at a much better rate than a credit card would simply because they know why youre taking the loan and can set regular monthly payments for you to repay it.

5. Credit Unions
Credit unions are like banks, only more local. They are co-operative, owned by their members and run by the community and are a great place to borrow money. The reason is because there are laws that limit how much interest credit unions can charge and they dont need to make a profit for owners or shareholders because they dont have any. Its a solid alternative and well worth looking into if theres one in your area.

Even if you write the check while waiting in line, it will take you forever to pay by check in most stores. They have to see your drivers license, write down all of your info, circle your address and then run it through the system. It isnt the stores fault. The need for all of the double-checking is caused by check fraud and identity theft.

Many shoppers, myself included, have turned to debit cards. Debit cards arent really like credit cards, they are an electronic check. But some banks are starting to offer frequent flier miles, rebates and cash rewards to regular debit card users. The lines are blurring for some consumers.

When you shop with a debit card, you need to know how it works and the drawbacks.

There are two types of debit cards: PIN cards and signature cards. With a PIN card, the money is automatically deducted from your account. You must use your PIN number to use the card. Sometimes you can even get cash back from a merchant.

Signature cards are often called check cards. The money is deducted from your checking account within usually two or three days. You dont have to enter a PIN, you simply sign the receipt.

Most cards today will perform as both types of cards. You can use it as a PIN card and receive money back or as a signature card. Both types will work in an ATM machine. With a PIN card, the money comes out of your account immediately. With a signature card, you have to keep track of your receipts, because, like checks, the money will not come out for a few days.

Debit cards are a good alternative to credit cards. You have the convenience of a card with a limitation to the money that is in your checking account. While you cant go on a spending spree, you must keep track of when you use the card. It can be quite surprising how it all adds up.

Debit cards dont have some of the legal protections that credit cards have. Credit cards give you the right to withhold payments on an item that is defective. Debit cards dont allow this, so you would have to try to get a refund or replacement item. For large purchases, you are often advised to use a credit card. Then simply sit down and make the payment to your credit card company that same day.

Debit cards require that you report a theft of your card within two days of discovering the loss to recoup some of your stolen money. If you follow all guidelines, you will only be liable for 50. After two days, you are liable for 500. After 60 days, you are left holding the empty bag.

Credit cards often will offer more protection than the law allows. Several cards offer zero liability for unauthorized use of a debit card.

While a debit card often gives you the ability to use it in place of a credit card, say for telephone or internet shopping, there are times that you should use a credit card instead. Hotels, rental-car companies and even gas stations will place a hold on your account for a certain amount of money until you check out or return the car. The practice ensures them that you have the money to pay the bill.

If you use a card with the available credit, you probably wont have any problem. But when using a debit card, be careful. The amount they place on hold is exactly as if it has already been spent. This could prevent you from having checks go through or withdrawing money from your account.

The best advice for using a debit card is to be meticulous about keeping your receipts and writing them down in your register. It is so convenient, often we loose track of how and where we have spent the money.