Why do you use a debit card?

[Ciao Mickey]

Why would you use a debit card instead of a credit card? What are the advantages?

I would think using a no-fee rewards credit card to make your purchases and then paying it completely off at the end of the month would be more beneficial than using a debit card.

What am I missing?

[eyeheartgoofy]

I use a debit card because I treat it more like cash. I am subtracting each purchase from my checkbook register and can see how much money I have spent.

When I use a credit card, I spend more.

[Tissa]

I use a debit card for most purchases because, I can not trust myself to save the money and pay off a credit card at the end of the month.

[ducklite]

Using a no-fee rewards card and paying it off each month is the better choice IF you have the discipline to not spend money you don't have.

Many either don't have that discipline, or don't trust themselves, or have gotten into trouble with credit cards in the past and no longer use them. For those groups a debit card is a "safer" and convenient alternative.

Anne

[kelleigh1]

Well, my debit card is a rewards credit card. If I use it as a credit card, I earn rewards points.

But, one of the advantages might be that if you use the debit card instead of some other credit card, the money is already out of your account. If you use the credit card, you might just end up spending that money throughout the month instead of saving it to use to pay off the card.

[U2_rocks!]

I would think so too. I only use my credit cards for purchases - my bank card is only used at the ATM to withdraw cash. I pay regular monthly bills online where I can, and write checks for the rest. For anything else, credit cards rule! Since we pay 100% of the balance when it's due, we never pay interest. Our credit rating keeps rising, along with our credit limits (we never ask for increases, we just notice from the statements that the limits are always rising!). Those pesky banks think they will eventually get us to rack up enough of a balance that we can't pay it off on time and they'll finally get to charge us interest! :rotfl: I like the rewards we earn on our credit cards - we get nothing for using the debit ones.

[pyrxtc]

I use so I know I am spending cash and not credit. I'm not very good about getting mail out in time and I did really bad when I was younger wiht CC. Also I use my debit carda s a CC and get rewards for it.

[I Believe n Fairies]

For us, we use it like cash. I NEVER carry "real" money around. I always have my debit card. We just subtract from checking as we would if writing a check, which I hate to do. I do not have the discipline to pay off the cc each month. My dh does, but not me... Also, with our debit acct we get points for stuff. We're going to cash in our points this summer for $100 towards a Hyatt hotel room and take the kids to Chattanooga for the weekend.

For us, it's easy.

[KristinU]

There's also some statistic that people spend more when using a credit card vs. cash - I'm totally one of them. That 1% of Disney Rewards was costing me roughly 20% more. Hardly worth it. I've switched to cash everywhere I can and virtual debit when I make an online purchase.

[Darcy03231]

My debit card accrues rewards points so I use that.

[JandJ]

I only use a debit card if the store/restaurant/etc. doesn't take my favorite rewards CC. We pay our CC off 100% in full every month and use it for everything we can, so it's like we spent no cash all month and then pay everything with one bill and earn lots and lots of rewards. If we didn't pay it off every month it wouldn't be worth it though, but we are on a strict budget and it hasn't been an issue.

[mousefanmichelle]

I use my debit card instead of cash - I use it for groceries, gas and the like. It is easier to pay for gas at the pump vs. going into the station to pay with cash- maybe I am just lazy but it works.
I don't have what it takes to pay off a credit card for my daily purchases - eaiser to know whether I have the cash to pay for something or not. If the $$ is not in my checking account I don't buy it cuz I am not paying overdraft fees!!!:)

[car1971]

I use my debit card for everything. I dont have any credit cards. I once got in trouble with them and now am totally debt free and would like to stay that way.

[leight]

I only use my debit card- it accrues cash every time I use it and is linked to my Upromise acct. I've had difficulties managing debt-but we are on our way to being credit card debt free. DH uses his reward card-we pay it off monthly- but I am limiting myself to a debit card. This is something we decided works best for us and it is working nicely.

[RichNKatHolly]

I use my debit card for everything. I dont have any credit cards. I once got in trouble with them and now am totally debt free and would like to stay that way.

Same here! :)

[i3utterfli82]

I only use my debit card for everyday purchases. It is a visa and is linked to visa rewards. I just got a $50 Target gift card (I choose) for my points, it didn't take me but a few months to get that. Not bad for a debit card!

[Lisa_M]

we also get visa rewards when using our check card. I use debit when I am at the store and need to get cash back, otherwise I use it as a credit so I can get points. Our complex lets us pay our rent online so we get points for that too! It's great!

[iNTeNSeBLue98]

We use debit cards for everyday purchases just like using cash. We are trying to use the CC for emergencies only. DH has the only major CC in the house. Only his name on the account so that prevents me from using it, and I carry it so he doesn't use it for frivilous purchases.

In May I will pay off the 3rd of 5 store CC's. The two left carrying a balance are the two I use most often, but I will be paying those down with the money I'm saving by not paying the others. It has taken over two years to recover from late payments on my credit report due to DH losing his job in 2004. My scores are finally improving and the balances are dropping. As much as I would like to have a CC of my own, mostly for the sake of just having one, I don't want to fall back in to that hole.

[KarenAylwood]

I used to only use my credit card for gas purchases (to keep it active for my credit report) and used my debit card for everything else. After my debit card company started giving me rewards, I started comparing the two reward programs. I've recently started using my credit card more and more to get rewards (they are much better than the debit ones). In the past I kept it strictly debit to keep myself from overspending.

I've been doing alright with charging more on the CC but have noticed that I do tend to spend a bit more. I start to think to myself "well, it's ok because I won't have to pay it off until -insert date here-" That's what can lead to trouble, and that's why many people use only debit cards.

[KimAshton]

I only use my credit card when I am staying at a hotel or renting a car. The rest of the time I prefer to use the debit card.

[ms_mckenna]

We as of now do not use CC because we are trying to buy a house. I think this will be a permanant decision though. As far as debit cards I use my paypal debit card it is linked to my paypal account but if there is no money it pulls it out of my checking account. I get 1% cash back and no fees. Not much but every little bit helps. Plus when we debit the checking account we do the keep the change thing so it helps there as well. DH only uses cash and never spends any of his change. He can't even use a debit card because he is not aware of what he is spending. It scares me and him both so he has a debit card but for the most part just uses cash.

[RayJay]

I use a debit card because I treat it more like cash. I am subtracting each purchase from my checkbook register and can see how much money I have spent.

When I use a credit card, I spend more.



BINGO!!!! Me too!

RJ

[PatsGirl]

Cash? What's cash? I use my debit card for all expenses and the best advantage to that is knowing where every penny is spent:scared1: When I don't meet my weekly/monthly budget I can go back and figure out where I spent the additional money. I think it really keeps me on track versus having cash in my wallet and then SUPRISE! it's all gone. Cash seems to go much quicker -- this way I really have to think long and hard whether I need that $2 item or not, mostly because I find it quite embarrassing to use my debit card for such small purchases. And, up until quite recently, fast food restaurants and the like didn't accept them so those purchases were out:rotfl2:

[bord1niowa]

I used to work at a place that offered the business cc's, the biggest names too, and you have to be careful as to what 0% interest really is. Sometimes it means if you pay the balance off BEFORE they even bill you. When you get the bill, it's too late. Very tricky the way they word it.

[Ciao Mickey]

The reason I had asked about debit cards is my kid's have them in addition to credit cards.

We have drilled into them to only use their charge cards if they can pay them off at the end of the month in full.

I am a little confused about debit cards and two people using them on one account. Isn't it hard to keep track or do you have two separate accounts to draw from? Do you automatically have overdraft protection on the account?

I only use charge cards and cash. And we still write checks to pay our bills!
I'm old-fashioned when it comes to money matters. We don't do our banking on-line either.

[twinklebug]

The reason I had asked about debit cards is my kid's have them in addition to credit cards.

We have drilled into them to only use their charge cards if they can pay them off at the end of the month in full.

With online payments it's easier to tell them to pay off the balance at each paycheck. My son pays his as soon as he's made a puchase and it shows place and amt on the CC website.

I am a little confused about debit cards and two people using them on one account. Isn't it hard to keep track or do you have two separate accounts to draw from? Do you automatically have overdraft protection on the account?

My xDH and I had this problem. I keep my checking records either on a checkbook (back then) or in an excel spreadsheet. He'd never check with me on the balance nor on outgoing bills & constantly overdrew. After several years and what amounted to hundreds of dollars in overdraft fees I had enough and took his debit card away. He said I was a meanie & a financial control freak. :rotfl: (OK, so maybe a little bit)

:thumbsup2

[annie1995]

Easier for me to use a debit card than carry cash cause my kids would be asking me for money all the time. Plus I can't rack up huge credit card bills with it. Only spend what I have.

[BernardandMissBianca]

The reason I had asked about debit cards is my kid's have them in addition to credit cards.

We have drilled into them to only use their charge cards if they can pay them off at the end of the month in full.

I am a little confused about debit cards and two people using them on one account. Isn't it hard to keep track or do you have two separate accounts to draw from? Do you automatically have overdraft protection on the account?

I only use charge cards and cash. And we still write checks to pay our bills!
I'm old-fashioned when it comes to money matters. We don't do our banking on-line either.

Our bank gives us 2 debit cards with different account and pin numbers. It draws from the same account but if one were ever lost or stolen we can have the 1 card cancelled but still be able to access money. Our savings accts are also tied to our checking so I can move money around as needed via the Web.
It is tough keeping track if you or the other person on the account forgets to write it in the checkbook. DH is pretty good about giving me receipts or he will put them on the fridge. But if he is out of town I make sure I check my account online daily to see if anything has wrung through.

Also our bank had us apply for the overdraft. I'm not sure if all banks do that.

For your first question, I use my card to pay monthly bills online, gas (I don't have to pull the kids out of the car), food, etc. I try to use it as much as possible, I'm not fond of carrying cash. We are trying to get out of debt so we don't use the cards too much except we did charge DD's new car seat. Most of my bills are paid online but I still write a few checks. Of course with the postage going up again I will be paying as many online as possible now. Some places do charge a fee though for paying online, those will get checks.

[BernardandMissBianca]

If you charge something do you write it out of your checkbook and then pay the balance when the bill comes? I think I would end up spending the money if it sat in the checking acct. but I could hide it in invisible savings or actually transfer it to my savings.

[kennancat]

If you charge something do you write it out of your checkbook and then pay the balance when the bill comes? I think I would end up spending the money if it sat in the checking acct. but I could hide it in invisible savings or actually transfer it to my savings.We do everything through Quicken and then DH pays the bills electronically as soon as the card closes. Because we use Quicken, the debits automatically hit the accounts, so it really doesn't matter to us if it's a credit card or debit card. Bottom line is that the "total cash" line just went down ;)

[kisobel]

credit cards are way too easy to use. "i'm having a bad day" could cost you hundreds of dollars. debit cards- i cant spend what i dont have. i will never have another credit card again.


kate

[kabbie]

Most banks offer debit cards where you can earn points. Chase has Continental Airlines and Bank of America has US Airways & Alaskan Airlines.

My older sister had warned me aganist credit cards when I started college, but I was too stubborn to listen. Sure pay it off every month. That sounds very doable in theory. Doesn't work for everyone.

[miss missy]

Its cash... it has no bills.

[Rootskate]

I use my Debit card for just about everything. Like the other person said, it comes right out of my checking account, so there is no chance to overspend.

[KristinU]

I am a little confused about debit cards and two people using them on one account. Isn't it hard to keep track or do you have two separate accounts to draw from? Do you automatically have overdraft protection on the account?


We only make intentional purchases that are in our written budget, that we create together. So I guess neither of us is in the dark about the $ we have and what it is assigned to. That said, I do find it easier to just use cash (that has been earmarked for whatever purchase).

[U2_rocks!]

Here's what I don't understand about you debit card users: sure, you may have the funds right now in your account, but what about the bills that are still to come before your next paycheck? See, I can't keep track of that any easier than I can my credit card spending!

I get paid twice a month, DH gets paid once. The bills are due all over the place, not just at the end of the month. Not all of our bills can be paid online, so I frequently have outstanding checks that haven't cleared the bank. I can't tell from the balance what has cleared and what hasn't and how much disposable cash I have. We have a mortgage and insurances that are automatically deducted, but the date can vary a little. I have been known to assume something has already been deducted, only to find out it hasn't! I absolutely will NOT overdraw my account or bounce a check, so when I need something for the house, or I get an unexpected expense that I can put on a credit card I will - at least that way if the money isn't sufficient to pay it all off one month I can take 2 months to do it. It rarely happens, but at least it can! If I make an error in my reckoning and end up spending more than I have, how do I replace that money??? Some other bill then has to suffer. And sometimes the cost of reconnecting a service (water, electricity, cable)that was cut off ends up being more than the interest I'd have paid on the remaining credit card balance!!

I guess I just find the credit card thing easier somehow.

[Faerie]

I'm a debit card only user as well. I can't overspend. I don't write checks to anyone so for me it's easy to keep track of. Quicken is wonderful too, and super helpful.

I got into major CC trouble when I was younger and I don't want that to ever happen again.

[iNTeNSeBLue98]

Here's what I don't understand about you debit card users: sure, you may have the funds right now in your account, but what about the bills that are still to come before your next paycheck? See, I can't keep track of that any easier than I can my credit card spending!

I get paid twice a month, DH gets paid once. The bills are due all over the place, not just at the end of the month. Not all of our bills can be paid online, so I frequently have outstanding checks that haven't cleared the bank. I can't tell from the balance what has cleared and what hasn't and how much disposable cash I have. We have a mortgage and insurances that are automatically deducted, but the date can vary a little. I have been known to assume something has already been deducted, only to find out it hasn't! I absolutely will NOT overdraw my account or bounce a check, so when I need something for the house, or I get an unexpected expense that I can put on a credit card I will - at least that way if the money isn't sufficient to pay it all off one month I can take 2 months to do it. It rarely happens, but at least it can! If I make an error in my reckoning and end up spending more than I have, how do I replace that money??? Some other bill then has to suffer. And sometimes the cost of reconnecting a service (water, electricity, cable)that was cut off ends up being more than the interest I'd have paid on the remaining credit card balance!!

I guess I just find the credit card thing easier somehow.

We are paid weekly and I have my entire year's budget laid out by week. Every bill is accounted for and is based on last year's amounts until I learn otherwise. I reconcile this budget almost every day and balance to the checking account and cash on hand at least once a week. I've been using this system for two years now, and it has been more effective for us than any other method. DH usually checks with me before he uses his debit card, just to make sure there are funds available.

I also keep track of our checking account in Excel. Each time a check is written, a purchase or deposit is made I record it. I check the online banking often and shade the amounts as they clear so I know what is outstanding.

[U2_rocks!]

We are paid weekly and I have my entire year's budget laid out by week. Every bill is accounted for and is based on last year's amounts until I learn otherwise. I reconcile this budget almost every day and balance to the checking account and cash on hand at least once a week. I've been using this system for two years now, and it has been more effective for us than any other method. DH usually checks with me before he uses his debit card, just to make sure there are funds available.

I also keep track of our checking account in Excel. Each time a check is written, a purchase or deposit is made I record it. I check the online banking often and shade the amounts as they clear so I know what is outstanding.

I'm not sure I could be that disciplined about money! Most of our bills are predictable enough I suppose, though they do vary a little. And I've never been able to sit down and work out when we will go to the dentist, doctor and hairdresser! I think I would have to go to a complete cash system (no charge accounts of any kind) to be able to work a system like yours!

[bellarella]

I think the difference lies in whether you believe in taking on debt. I have used credit cards religiously since I was 18 years old. Only once in that time did I ever spend more than I knew I could pay off at the end of the month and that is when I moved into my own place after college and needed something to sleep on. I carried the balance for less than 6 mos and it was under $500. It has never occurred to me that carrying a balance was "ok". So for me debit cards make no sense. They aren't as secure as credit cards (it's your money that's really gone if there is fraud and you have to jump through the hoops while you could be bouncing checks without realizing it). Most don't offer points unless you use them as a credit card. Plus it makes bookkeeping a pain. I much prefer dealing with larger sums less frequently than little sums all over the place. But in my mind, there is no difference in the way I would use a debit card than a credit card -- I don't charge what isn't sitting in my bank account.

[JandJ]

If you charge something do you write it out of your checkbook and then pay the balance when the bill comes? I think I would end up spending the money if it sat in the checking acct. but I could hide it in invisible savings or actually transfer it to my savings.

We use Quicken and like another poster said, it deducts from your "cash" every time you make a purchase, whether it's a debit card, ATM withdrawal, cash from your wallet, or CC purchase, so you know how much you have left. We enter every penny spent and then download our accounts into the Quicken about every other day.

We are also on a strict budget. I know exactly how much I have each month for the major bills (mortgage, utilities, gas, etc.) and then how much I have for groceries, household items, personal purchases, and how much goes into retirement and into savings. We treat the CC like cash - spend $80 in a week on groceries and it doesn't matter if it came out of your checking account or on a CC - it's all the same money from the same place - using a CC and paying it off in full just makes it all on one monthly bill and we get really good rewards for using the CC too.

[Ciao Mickey]

I think the difference lies in whether you believe in taking on debt. I have used credit cards religiously since I was 18 years old. Only once in that time did I ever spend more than I knew I could pay off at the end of the month and that is when I moved into my own place after college and needed something to sleep on. I carried the balance for less than 6 mos and it was under $500. It has never occurred to me that carrying a balance was "ok". So for me debit cards make no sense. They aren't as secure as credit cards (it's your money that's really gone if there is fraud and you have to jump through the hoops while you could be bouncing checks without realizing it). Most don't offer points unless you use them as a credit card. Plus it makes bookkeeping a pain. I much prefer dealing with larger sums less frequently than little sums all over the place. But in my mind, there is no difference in the way I would use a debit card than a credit card -- I don't charge what isn't sitting in my bank account.

I think two times in my married life we purposely carried over a cc balance to the following month.

For me to have to keep track each day of every time I spend would be more work then I am willing to do.

What I am trying to understand with the younger generation is what is so wrong with carrying around some cash? It's not very heavy! :rotfl:

Please don't get me wrong, I am not trying to criticize anyone, I'm just trying to understand.

My own kids don't carry cash which drives me crazy. They would rather waste gas and run to the ATM then to keep an extra couple of dollars in their rooms for emergency. Now they know to ask me and I will loan them the money until they go to the bank.

We always keep some cash at home. I don't carry around more than I need but I always have some cash on hand. If I use up my cash I just take more from home. Isn't this an easier way to keep track of your spending? Because once the cash is gone it's gone--nothing more to figure out!

So in other words, using a credit card for some of you is too much of a temptation? Got it!

[iNTeNSeBLue98]

I only have cash on hand after DH cashes his paycheck. My income is direct-deposited, so I can't get to it unless I go to the bank and A) use the ATM before the bank opens on my way to work, or B) remember to go to the bank after work to withdrawal. I don't carry my checkbook anymore, so the bank would have to debit my account.

[Stein]

I think two times in my married life we purposely carried over a cc balance to the following month.

For me to have to keep track each day of every time I spend would be more work then I am willing to do.

What I am trying to understand with the younger generation is what is so wrong with carrying around some cash? It's not very heavy! :rotfl:

Please don't get me wrong, I am not trying to criticize anyone, I'm just trying to understand.

My own kids don't carry cash which drives me crazy. They would rather waste gas and run to the ATM then to keep an extra couple of dollars in their rooms for emergency. Now they know to ask me and I will loan them the money until they go to the bank.

We always keep some cash at home. I don't carry around more than I need but I always have some cash on hand. If I use up my cash I just take more from home. Isn't this an easier way to keep track of your spending? Because once the cash is gone it's gone--nothing more to figure out!

So in other words, using a credit card for some of you is too much of a temptation? Got it!

Sounds like the way I used to be. I had less than $2 on me about 99% of the time. I used credit cards and debit cards as did my wife. With two debit cards and four credit cards, sticking to any type of budget, even if it did exist was virtually impossible.

The less ways we have to spend money, the easier it is to track. Right now, we use cash for everything except utilities and debt where we write checks or pay online. My wife keeps our checking account perfectly balanced every day, so we know exactly how much is in there.

Like what was mentioned above, we have our bills planned out for my bi-monthly pay schedule and know who is getting paid from what check far in advance. We spend about 20 minutes twice a month paying bills and doing the budget and the rest of the month is care free!

Plus, it sure is nice not getting credit card bills in the mail! Even if you know what is in there, they just aren't much fun.

[lg3]

We used to use our debit card at Sam's Club, or some place that didn't accept our Disney Visa. Now that they take MC, we use our AA MC there.
I admit I occasionally use my debit card for things I may not want to show up on the Visa statement (I handle the checking acct), such as my hairdressers. I really don't think DH would care, but it makes me feel better. After all, he may still think I just wake up and look like a million dollars naturally. :teeth:

[3js13]

We only use debit card for everything. Except bills. I put a budgeted amount into a separate checking acct. every week and write checks out of that acct. for bils. It makes it easier to keep track of what is spent. We don't have credit cards b/c we feel if don't have the cash we don't need it. There has only been two times in my marriage we needed to use a cc. So we used my dbil's cc and payed it off before it was due.

[photo_chick]

I no longer have any open credit cards. We have decided that if we can't pay cash for it (house and car being excluded) then we do not need it. SO I use my debit card for the easy acces it gives me to my money. I prefer it over writing checks as well.

That said there are times when I have made purchases that I had to go get cash out at the bank because I could not use my debit card due to the spending limit. You should have seen the look on the lady's face at Home Depot when I pulled out an envelope with $5000 to pay for the playhouse (really a glorified Tough Shed and very cool if I do say so myself!) we had built!!!:rotfl: I don't think she had ever had a customer pay cash for something like that. I did the same thing at Sears when I got my washer and dryer, though not as much money. It is almost unheard of now days not to charge large purchases like that.

[photo_chick]

Here's what I don't understand about you debit card users: sure, you may have the funds right now in your account, but what about the bills that are still to come before your next paycheck? See, I can't keep track of that any easier than I can my credit card spending!



I have all the bills and their due dates listed in my calendar with the amount for each. Each 2 weeks (night before payday) I make a budget. I decide which bills need to be paid out of this check, and which the next. Usually I have this planned out 3 or 4 checks in advance at least. I know exactly how much I have to spend on what things at that point. Then I keep my recipts and subtract them from my budget.

When we first got married DH and I used to do this with a sheet of paper taped to the back of the front door. Each of us would just write the new total of what we had left in each catagory.

I am an obsessive planner though! This can be good as I know I need to save $80 a paycheck to pay for our trip to WDW next year!

[DaisyD]

If you charge something do you write it out of your checkbook and then pay the balance when the bill comes? I think I would end up spending the money if it sat in the checking acct. but I could hide it in invisible savings or actually transfer it to my savings.

I don't write it anywhere. We just download the bill once a month and pay it in full. We have the money in the bank and don't have to worry if we overspend on it. I can't imagine blowing all the money in our bank account on a month of credit card purchases. There is no way I could walk around with all that cash when a CC is so much easier.