by Joseph Kenny | 06/10/08

Credit cards have become ever-present in the wallets of American consumers.  However, debit cards could be giving credit cards a run for their money.

Financial experts say that the use of debit cards continues to increase.  They're considered to be a handy way to pay for purchases - without affecting one's credit limit.

In an effort to appeal to the booming debit card market, a number of leading financial institutions are now unveiling debit cards that offer perks similar to those that accompany credit cards.

For instance, a new MasterCard debit card from Capital One offers a special rewards program that rivals those offered by credit cards.  The debit card can also be connected to any bank account - not just a Capital One account.

Of course, there are some risks involved with debit cards.  For instance, if the card is stolen, a consumer might be wondering whether he or she should call Capital One or one's own bank.  However, the good news is that Capital One will reimburse any illegitimate debits within a day.  That means that, with a Capital One debit card, you don't have to really worry about identity theft.

A recent MasterCard survey indicates that the debit card market is hotter than ever.  The poll showed that debit card use by women is now twice as high as it was in 2003.  About 43 percent of women now use debit cards routinely.  Debit cards are seen as a flexible, highly manageable way to handle purchases, both small and large.

In fact, a number of consumers say that it's simply easier to manage their monthly budgets when they use debit cards.  That's because if they don't have enough money in their accounts to cover their purchases, they hold off on buying.  Debit cards also allow consumers a chance to escape high credit card interest rates, meaning that their monthly credit card payments may be smaller.

However, debit card users should be aware of the fact that, if they end up overdrawn on their checking accounts, they could end up with some unexpected charges.