Why do you use a 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 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

 

[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. (OK, so maybe a little bit)

 

[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.