Every country in the world has a central bank to oversee the economy and protect the national currency. Most countries have just one central bank, often call “national” bank but other examples also exist. The Federal Reserve is the central bank of the United States although every state also has a separate central bank operating on a state level. This is an exception, though.

The central banks usually operate with vast amounts of money because they handle all government accounts and every commercial bank is obliged to deposit a certain amount of money with the national bank. The central banks also profit from short term loans to commercial banks under their jurisdiction and traditionally are the largest banks in the state.

The most powerful weapon of the national banks regarding the currency rates is their right to change the base rates within the country. Every adjustment of the base rates affects the currency exchange market immediately; hence, has impact on the currency rate levels. That is why all market players watch closely every move and statement of the national banks and an interview of the Federal Reserve or European national Bank governor can provoke bullish or bearish market trend in a few seconds.

This unparalleled situation forced some central bankers to voice concerns that the world is on the verge of a currency rate war but such statements are some what exaggerated. Despite that, the national banks remain a major government body possessing the power to turn the market direction or to pour vast amounts of money to defend their currency. Backed by all the power of the state they are a key market maker and all currency rates depend heavily on their actions. The institution of the national bank must be considered as a place where the state manages the market.

Ever wonder what is “check visa card”, “master money card”, “check card” etc? They are simply debit card. And what is debit card? In case you do not know it yet, transaction using debit card works almost in the same manner as credit card except there’s a huge different:

Let’s say you have $1000 checking account in your favorite bank, and then you spend $200 for a sophisticated gadget, jewels, car rental, etc.. You name it. And if you pay:

1. Using credit card, you are purchasing now pay later. You have the goods in your hand and your $1000 intact. It will remain that way until you get your billing statement and pay the debt.

2. Using debit card, by the time the transaction is authorized your $1000 now is $800. This is purchase now pay now scheme but without bringing your cash with you

And if you go to ATM and withdraw cash:

1. Using credit card you’ll be charged for a high interest fee.

2. Using debit card there will be no interest fee.

And if you swipe your card:

1. Using credit card you’ll be asked for your signature

2. Using debit you’ll have to enter your PIN or your signature.

Another major different between debit vs credit card, using debit you are saved from debt. Obviously you can’t spend anything if you have noting to spend while using credit although you are running out of cash, as long as you haven’t reach your credit limit you still can shop something. You just have to worry when the next financial month comes and you get your billing statement.

At this point, does debit card sound more convenient? Maybe, but you may interest to know that against fraud debit card has a higher risk. Credit card has what it called “credit limit”, maximum amount you can spend using your credit card. Say your credit limit is $10,000 then if your card is fraud the thief won’t be able to steal more than $10,000.

But debit card knows no limit except minimum low balance account. Say you have $700 in your checking account with minimum balance is $10, if your debit card is fraud the thief can pull out all $690 and leave the $10 for you. Some of you may argue “hey at least I still have 10 bucks” but $10 against $690? I prefer i keep the $690. You may report to bank which then investigates it but the process can take days, weeks or months while you need to live. You have children to feed, debt to pay, food to buy but you are without your money. If it is your credit card, though you still have to fight with your bank, you still have your money with you.

If you are in debt, you may be trying to think of a way to get out of debt, and there are debt solutions that can help you. There are many different debt solutions that are available and the challenge for you is to find the one that will best suit your individual financial needs.

The following are several solutions for debt that you may want to consider.

Paying Yourself

Of course, one of the most common types of debt solutions is to actually repay the debt on your own. You may want to dig into your savings account or even take money out of your 401k to help you pay off this debt. While you may dislike having to use these methods, it is much better to get rid of the debt that is hanging over your head. No doubt using self repayment will take a great deal of self discipline, but it will be well worth it in the end.

In the long run, you are going to pay a lot more on your debt interest than you are going to make with your investments. So consider getting out of debt before building an investment portfolio. After all, what’s the point of investing money that makes you 10% a year, if you are paying 21% interest on your credit card debt? Remember, there can be consequences for withdrawing your retirement money. Please be sure to consult a professional in this area, such as a financial advisor, before making this decision.

Try to Settle

Settlements are another solution to your debt that you may want to consider. Many times a debt counseling company or other mediating company can help you and the credit card company come to a settlement price. Usually the will give you a significant reduction on the amount of money you owe, and it may even be an up to 70% reduction, which is a large amount. This type of solution will require that you pay the settlement amount immediately, which may be a problem for some people.

Home Equity Loan

If you own your own home, this can be a great way to get rid of your debt. You can actually use the equity in your home to get a loan that will allow you to pay off your other debts. Usually this is a great idea because you will be able to get a lower rate of interest and then you will only have to worry about paying the home equity loan instead of all your other debts.

Credit Counseling

Another of the many debt solutions that are available to you is credit counseling. This solution requires that you work with a company that can help you get your finances in order so you can pay off your debt. They may be able to negotiate payments and interest rates, and they can help you create a budget so you can save money and have more money available to pay on your debts as well. While the company is not active in getting rid of your debt, they do help you to come up with a reasonable plan that can help you