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For those who are financially savvy, a question
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: For those who are financially savvy, a question
Continued...
Using debit cards may be convenient, and a good way to access cash. BUT, for making purchases at stores which accept Visa/Mastercard, the financially prudent option is to always use a CREDIT CARD rather than a "visa/mastercard labelled" debit card...ESPECIALLY WHEN MAKING PURCHASES ONLINE AND FROM LESSER-KNOWN MERCHANTS.
WHY? Numerous reasons. From the free grace period on purchases, cashback rewards, free insurance and other protections, there are MANY more reasons to use a credit card over a debit card...Say someone starts making fraudulent charges...if they have your credit card #, you call the CC issuer and NEVER HAVE TO PAY THE DISPUTED CHARGES. The money NEVER leaves your pocket...
But with a debit card, the thief can WIPE OUT YOUR BANK ACCOUNT, which can have the ripple effect of causing outstanding checks you have written to bounce, getting insufficient funds/other negative marks on your mortgage and car loans, returned check charges, credit card promo rates defaulting to the "penalty APR" etc...
Of course, using credit cards makes sense ONLY when your credit card is kept at a 0 balance, and assumes you will pay the card off in full every month (to avoid any finance charges). If you carry a balance, its foolish to incur finances charges on purchases you plan on paying off that month.
Anyone who advocates using debit cards usually does so only because they cant qualify for a credit card, or because they carry balances on all their credit cards.
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Posted 2/27/06 1:54 PM  |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: For those who are financially savvy, a question
I gotta go with paying with cash only then, after hearing your other comments. If this person is so strapped financially, the charges and penalties are only making things worse for him/her.
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| Posted 2/27/06 2:24 PM |
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BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
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Re: For those who are financially savvy, a question
I think using cash only is the way to go if you have a debit card problem. If you are someone who lives paycheck to paycheck, you really should be on a budget. Hell, even if you don't live paycheck to paycheck, you should be on a budget. JT and I need to tweak our budget, so starting March 1, we are writing down every, single purchase we make for the month so we can go back and analyze where we can save some money, but more so, how much we need to budget each week for living expenses. I think that would help, then just take the cash out for that week and when it's up, it's up.
I usually stick any leftover cash from the week into an envelope, so that if I ever need anythign extra, I can dip into that and not money allotted for something else. HTH.
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| Posted 2/27/06 3:09 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: For those who are financially savvy, a question
Posted by prncssrachel
we are writing down every, single purchase we make for the month so we can go back and analyze where we can save some money, but more so, how much we need to budget each week for living expenses.
IMO, this is the only way you really know for sure how much you spend and what you really need to spend on, and what are the extras.
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| Posted 2/27/06 3:51 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: For those who are financially savvy, a question
Posted by dpli
Posted by prncssrachel
we are writing down every, single purchase we make for the month so we can go back and analyze where we can save some money, but more so, how much we need to budget each week for living expenses.
IMO, this is the only way you really know for sure how much you spend and what you really need to spend on, and what are the extras.
Yup!
I found using MS Money is a GREAT tool for doing this. I love this program... I use it daily.
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| Posted 2/27/06 3:53 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: For those who are financially savvy, a question
I actually got overdraft on my checking account and then when I go over- I transfer the money back
most banks will do this- it helps b/'c I can "pay cash" instead of using a CC when I know I have the money in saving
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| Posted 2/27/06 4:03 PM |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: For those who are financially savvy, a question
Posted by dpli
Posted by prncssrachel
we are writing down every, single purchase we make for the month so we can go back and analyze where we can save some money, but more so, how much we need to budget each week for living expenses.
IMO, this is the only way you really know for sure how much you spend and what you really need to spend on, and what are the extras.
I agree, we use MSN Money and track every penny. This week I am analyzing my March 1 2005 - March 1, 2006 purchases to see where we can cut back and save. We live within our budget now, and I wonder if we can live under it. It should prove interesting.
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| Posted 2/27/06 4:13 PM |
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