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Risky Debit Cards

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Sat, 01/22/2011 - 14:43
micharch
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Joined: 02/22/2009
Posts: 479

I recently ran across this article on why it's not so great to use a debit card. We SavingToolss need to stay up on financial deals. I always use a credit card (usually Discover) on about 99% of out purchases/bills and get at least a 1% cash back kicker.
 
The Question: In your Jan. 1 column, you said were  against using debit cards. I was wondering if you could explain your reasoning.
-- C.M., Berea
 
The Answer: For those who haven't read my rants over the years about debit cards that are connected to a person's primary checking account, here's why I think they're horrible:
 
http://www.cleveland.com/business/index.ssf/2011/01/ask_your_bank_these_tough_ques.html

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Sun, 01/23/2011 - 21:31
#1
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Kay
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Joined: 12/19/2008
Posts: 1096
Re: Risky Debit Cards

Good post! I just don't like credit cards. We use the debit card all the time and the credit card once in a blue moon. We're always getting offers in too but just prefer to know it's paid for there and then. 
 
I didn't know about this!
 

• Debit card authorizations can tie up your money. A merchant such as a gas station or hotel may put a three-day hold on more money than you will be spending. You won't be able to use that money until the hold ends. That could cause other payments to bounce even though you really have enough money in your account.

 
Thanks for enlightening me.


The best way for a person to have happy thoughts is to count his blessings and not his cash. ~Author Unknown

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Wed, 02/09/2011 - 14:58
#2
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Zoey
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Joined: 05/24/2009
Posts: 889
Re: Risky Debit Cards

I didn't know that either, Kay. I use mine too because I like to know the money's coming straight out my account so I know exactly where I am. Guess I was wrong on that score! Thanks micharch. :)


Top Ten Reasons Why I Procrastinate.
1.
 

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Thu, 02/17/2011 - 15:34
#3
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cookiefan
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Re: Risky Debit Cards

I have this fear of credit card balances. What if something happened and we couldn't make the payments? That's my big worry. I keep ours small and always within a month or two of clearing off the whole balance.


Without frugality none can be rich, and with it very few would be poor.
- Samuel Johnson

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Thu, 02/17/2011 - 21:35
#4
micharch
User offline. Last seen 7 hours 3 min ago. (Offline)
Joined: 02/22/2009
Posts: 479
Re: Risky Debit Cards

cookiefan wrote:

I have this fear of credit card balances. What if something happened and we couldn't make the payments? That's my big worry. I keep ours small and always within a month or two of clearing off the whole balance.

 
Paying off your credit card balance monthly is the only sane strategy to take. CC debit has been the financial killer of many folks.

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