I get asked this question a lot when I'm out on my rounds taking pictures for the Northern Echo. It sound obvious but, to answer this, you really have to think about what you intend to use the camera for.

A compact digital camera is a very sophisticated beast nowadays. The poor lens zoom used to hold them back, but the current crop are much improved.

Notable models are: Sony CyberShot HX5 with an impressive 25-250mm lens, Canon's G11 that offers a 28-140mm lens and some of the features of a digital SLR such as a flash hotshoe, or the budget Panasonic Lumix DMC-FS7 with its 33-132mm lens.

If it's durability you're after, then take a look at the waterproof and virtually bomb-proof Panasonic FT2.

Compacts are still the best option for point and shoot if you want a take-everywhere camera.

The fact that the focusing often cannot cope with low-light or action is usually no great loss, as most of the time the cameras are used in either domestic or outdoor settings, and not at a dark football match.

So all this said, it does beg the question - why buy a digital SLR?

One of the first myths that needs busting is that the image quality from a digital SLR will be better. This simply isn't true.

With the average cheap digital SLR, with the cheap lens that typically gets bundled with it, you will get no sharper pictures than you will from a good compact camera. Think of it as pure economics.

The cost of manufacture of a small, high volume, compact camera lens is far less compared to a digital SLR lens, with its larger optics and mechanics.

This means that the tolerances and material quality tend to be significantly poorer in cheap digital SLR lenses than in a compact camera lens.

Often, companies like Canon sell their professional 'L-series' lenses for four times the price of the budget one, because that is how much it costs to get a truly sharp digital SLR lens.

Other advantages of compact cameras are that they are small enough to pop in your pocket, they don't scream 'look at me' so great for street photography, they often shoot video and offer great value for money.

The real reason to buy a digital SLR is if you know about or want to learn about photography.

The interchangeable lenses and ability to utilise flash on or off camera means you can free yourself from the constraints of the 'auto' setting and the point-and-shoot approach.

Digital SLRs also offer the ability to get decent photographs in more tricky environments.

Whether it's high speed action or night photography, you stand a far better chance with a digital SLR of being able to get that perfect frame.

The price of digital SLRs has now stabilised after plummeting for many years.

The current offerings from Nikon such as the D3000 and D5000 and Canon's 1000D and 500D (really imaginative names these) are amazingly good cameras, for far less that £500.

It is always worth looking out for secondhand digital SLRs too, as you can get some real bargains.

I do feel that a lot of people make the mistake of going for a digital SLR and then never use more than five percent of its capability, which quite frankly is a shame.

Please feel free to add any comments or additions you might have below. I'd like that.