Even in this hard economy, it looks like consumers are racking up more and more debt and getting ahead of themselves financially. There are numerous reasons why credit cards could hurt you financially, but a debit card could be what is putting you over the limit.

A sound routine is to go to the bank, take out enough money to last you a week and then attempt to live on those funds. Experts believe that relying on paper money in the wallet instead of credit cards will increase budget discipline and decrease impulse purchases. By relying only on ten, twenty or even fifty dollar bills, you are prone to buy only what is necessary as opposed to what you think you want or need.

Debit cards do have some upsides. They could stop you from going overboard with a huge purchase like you can with a credit card. It also keeps track of where and how you spend the cash, but a notebook for a dollar at the local pharmacy could become your new budget book.

What it comes down to, is that anything that makes it easier to spend money means that whoever has it will in fact spend more money. Evidence shows that consumers spend more when utilizing debit cards in place of cash. While they may not go overboard with large purchases, they do go overboard with minute purchases. Additionally, debit card users are more likely to overdraw their bank accounts. A story in the New York Times revealed that banks earn billions in overdraft fees that were sparked by small debit card purchases.

Debit card processing fees are quite expensive for retailers. However card issuers claim that the higher sales from consumers make the expense worth it. Many retailers, mom and pop stores in particular, are starting to protest debit card processing fees and asking customers to pay in cash.

Mallory Megan works for a debt collection agency. She also composes articles on business and finance, consumer spending and collection agencies.