Debitize: Good for credit card lovers!

[flyawaymagpie]

I tally up my cc receipts every couple of days and pay it off. I learned years ago I can't wait for that bill each month as it was too easy to spend more than you had in your bank account!

This is basically what Debitize is doing for you - they automate this process so you don't have to waste your time doing it. My friends and I are using this, along with other fintech apps like mint, digit, qapital and betterment. All these apps have helped me automate my savings, credit card payments, investment and money tracking. Maybe it is a millennial thing to use these apps for money matters, we don't have as much trust issues as the older generations with these startups having access to our banks. In this day and age eveyone has access to our everything anyway and in case you think otherwise, you're probably wrong. We know better that these people won't run away with our money, and we're benefiting from their existence at, wait for it, no cost.

 

[olliesmom]

I'm a millenial, and I don't quite understand the problem this company is solving, or the added benefit they're providing.

If it's ensuring you don't carry a balance on your credit cards, I already have my accounts set up so that if at the end of the month, any remaining balance on my credit card is auto-paid. This is done directly by my bank with no fee involved and zero additional risk from having a third party access or hold any of my funds.

If it's making sure there is no mismatch between your CC balance and your bank account, it takes 5 minutes to log into online banking say, once a week, and pay off your balance. I can do on my phone or laptop in minutes and again, with no added risk.

I see all risk with no benefit. And I also think it's important to be building healthy financial behaviours and habits, such as being aware of CC purchases and balances. The Debitize website seems to really try to market being financially responsible, but I think long-term the benefit of staying on top of your own banking/CC activity without relying on a third party is far greater!

 

[tinker&belle]

Thanks OP... I think this might be something I would be interested in.

 

[KarenAylwood]

I'm a millenial...

I just... I don't know. It doesn't seem like something that would be of use to me. I like being forced to go in once a month and take a good hard look at my finances. I have everything set up to be due at the same time. I do a little review of the last month, where we spent too much, where we spent less, what we can move into savings. I can see how this might work for a younger group that doesn't have as many expenses maybe, or doesn't want to be all that involved in their finances. I've never used a debit card because I don't want the number potentially stolen. Like I have NEVER used a debit card, not even at 16 when I became more involved in my finances. My mom signed me up for a CC when I was 16 and that's all I've ever used. I'm going on 18 years of never missing a payment on any CC and not once carrying a balance (and yes I even put a car downpayment on it). As life has gotten more complicated with marriage, house, car payment, child, daycare, career change, etc etc I feel now, more than ever it's important for me to stay on top of where we are financially.

This is a pretty good review of it and gives a good perspective on who might benefit from this system: https://www.moneyunder30.com/debitize-review

I was never scared of using credit cards and actually feel more comfortable using a CC than literally any other form of payment. I can see how this system could work if you're afraid to get a CC for fear of overspending, etc. It's absolutely important to build credit and if you're afraid of using a CC I can see how this would be beneficial.

 

[Jen and Ashwin]

I'm a millenial...

I just... I don't know. It doesn't seem like something that would be of use to me. I like being forced to go in once a month and take a good hard look at my finances. I have everything set up to be due at the same time. I do a little review of the last month, where we spent too much, where we spent less, what we can move into savings. I can see how this might work for a younger group that doesn't have as many expenses maybe, or doesn't want to be all that involved in their finances. I've never used a debit card because I don't want the number potentially stolen. Like I have NEVER used a debit card, not even at 16 when I became more involved in my finances. My mom signed me up for a CC when I was 16 and that's all I've ever used. I'm going on 18 years of never missing a payment on any CC and not once carrying a balance (and yes I even put a car downpayment on it). As life has gotten more complicated with marriage, house, car payment, child, daycare, career change, etc etc I feel now, more than ever it's important for me to stay on top of where we are financially.

This is a pretty good review of it and gives a good perspective on who might benefit from this system: https://www.moneyunder30.com/debitize-review

I was never scared of using credit cards and actually feel more comfortable using a CC than literally any other form of payment. I can see how this system could work if you're afraid to get a CC for fear of overspending, etc. It's absolutely important to build credit and if you're afraid of using a CC I can see how this would be beneficial.

Also a millennial and I wouldn't use this either. I also never use debit, just credit. I don't carry cash, just my credit cards, debit card for withdrawing cash (if needed) and check book (for those rare times I need to write a check). I wouldn't say our finances are complicated, but we have a mortgage, 2 car loans and many other expenses, so its more than when I was single and didn't have a house or car.

Between my husband and I, we have 6 credit cards, though we only actively use 3 of the cards and have automatic transactions on the other 3 cards to keep them from being closed. I keep track of everything in YNAB and go online once a month to pay off the statement balances in full each month. I don't have any problems with programs that pull transaction data from my bank, but I'm not too keen on apps that would actually pull money from my bank to make payments, especially at a cost to me. Also, a lot of the other apps mentioned like betterment, mint, etc. I would not consider to be good products. After using YNAB, I realized how terrible Mint is for budgeting.

As for investments, I have investments for my Roth IRA automated at Vanguard, where I get excellent rates and an easy system for investing at no extra cost. A balanced portfolio isn't rocket science, rather put 20% into a bond fund (right now consider short-term because of raising interest rates), put 20% into an international growth stock fund, put 30% into large cap us stock fund and 30% into small cap us stocks fund. Buy and hold, reallocating 1-2 times per year to stay on target with this asset allocation. This model can get you through your 20s and 30s.

 

[MKCP5]

Wow. OP, if it works for you then go for it! Everyone else, do you really need to be so snarky and give her crap about how she does her business? If you don't want to use it, DON'T!!! No one says you have to! Jeez. She's just putting it out there for those who might be interested.

 

[olliesmom]

Also a millennial and I wouldn't use this either. I also never use debit, just credit. I don't carry cash, just my credit cards, debit card for withdrawing cash (if needed) and check book (for those rare times I need to write a check). I wouldn't say our finances are complicated, but we have a mortgage, 2 car loans and many other expenses, so its more than when I was single and didn't have a house or car.

Between my husband and I, we have 6 credit cards, though we only actively use 3 of the cards and have automatic transactions on the other 3 cards to keep them from being closed. I keep track of everything in YNAB and go online once a month to pay off the statement balances in full each month. I don't have any problems with programs that pull transaction data from my bank, but I'm not too keen on apps that would actually pull money from my bank to make payments, especially at a cost to me. Also, a lot of the other apps mentioned like betterment, mint, etc. I would not consider to be good products. After using YNAB, I realized how terrible Mint is for budgeting.

As for investments, I have investments for my Roth IRA automated at Vanguard, where I get excellent rates and an easy system for investing at no extra cost. A balanced portfolio isn't rocket science, rather put 20% into a bond fund (right now consider short-term because of raising interest rates), put 20% into an international growth stock fund, put 30% into large cap us stock fund and 30% into small cap us stocks fund. Buy and hold, reallocating 1-2 times per year to stay on target with this asset allocation. This model can get you through your 20s and 30s.

Yes, YNAB is amazing! I also like EveryDollar for keeping track of expenses as the month goes on. Totally recommend both of these programs!

I hope my prior post didn't come off as bashing the OP, it's not my business at all how other people handle their money! But in the spirit of discussion, I do have concerns with the program and always appreciate hearing the objective thoughts and opinions of others on new financial products and services myself!

 

[KarenAylwood]

Yes, YNAB is amazing! I also like EveryDollar for keeping track of expenses as the month goes on. Totally recommend both of these programs!

I hope my prior post didn't come off as bashing the OP, it's not my business at all how other people handle their money! But in the spirit of discussion, I do have concerns with the program and always appreciate hearing the objective thoughts and opinions of others on new financial products and services myself!

I feel the same way and my post also wasn't meant to bash the OP. Like I said in mine, I can see how it'd be beneficial to some. Most of these responses were in the interest of a discussion about what possible pros/cons people see in the system. My first impression was "no freaking way" and then I searched for the other side of it and found that review. I think it could be beneficial to some and not others- like most apps/programs.

Not really related but thanks to those who commented about YNAB. I tried Mint and I'm not impressed, plus none of my capital one stuff will work with it. I'm going to look into YNAB further now

 

[Jen and Ashwin]

I feel the same way and my post also wasn't meant to bash the OP. Like I said in mine, I can see how it'd be beneficial to some. Most of these responses were in the interest of a discussion about what possible pros/cons people see in the system. My first impression was "no freaking way" and then I searched for the other side of it and found that review. I think it could be beneficial to some and not others- like most apps/programs.

Not really related but thanks to those who commented about YNAB. I tried Mint and I'm not impressed, plus none of my capital one stuff will work with it. I'm going to look into YNAB further now

I have capital one accounts and it works great with YNAB. I always had trouble with my USAA account working in Mint and since that is my main checking, it really made it worthless. Let me know if you need any help with YNAB. There is a free trial, so I would give it a try and if you send them a message, they might even extend it over one month. My brother had luck getting them to give him 2 free months. I recommend taking some of the free webinars to help learn the program. I took them all because I am just like that, but definitely take the getting started one.

 

[LinderInWonderland]

Thanks for telling us about this program! I am glad it works for you!

Personally, I used YNAB and just switched over to the new web-based version. I like how it handles credit cards on there. When I spend money, I can choose which account it comes from (checking or credit card). If it's a budgeted expense, it pulls the money from my budget line and puts it in the appropriate credit card payment line. Then, when it's time to pay the bill, all the money is already there.

That said, I do not have YNAB linked to my bank account because I am too much of a control freak and enjoy reconciling my accounts on my own.

 

[Mackenzie Click-Mickelson]

It must be a millennial thing

Nope not a millennial thing whatsoever. I have no idea why you would generalize all people like that. Some people will see benefit, some will see risk, some will say what's the point.

FWIW I'm a millennial and I'm not interested in this service at all and I love electronic stuff in fact all my banking is basically mobile banking unless I for some rare reason need to go into the branch and I prefer to do many things online. But this service at the present time is not a risk I'd like to take. That is just me personally not that others won't find your information/experience with it helpful.