| Posted By |
Message |
| Pages: [1] 2 |
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
For those who are financially savvy, a question
For a lot of people, debit cards cause BIG problems. They use debit cards and forget to count the amount in the check register, leading to bounced checks, fees, etc.
If this is a problem for someone, it's easy to say "well cut up the Debit card" but more and more places don't take checks and some places never did, like gas stations, etc.
Has anyone been in this situation? What would you advise someone? Is it better that they get a credit card for the palces where they can't use checks, so that at least you can;t rack up overdraft fees that way, or what?
Any advice?
|
Posted 2/27/06 12:50 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
|
Re: For those who are financially savvy, a question
they have credit cards where you can put a certain amount of money on it. That maybe a solution to the person that uses the debit card like its water! 
|
| Posted 2/27/06 12:51 PM |
| |
|
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
Re: For those who are financially savvy, a question
Thanks. I am SOOO not good with money. I don;t have the debit card problem. I put everything on my credit cards, which is its own problem I guess. So maybe a low credit limit credit card?
|
| Posted 2/27/06 12:53 PM |
| |
|
dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
|
Re: For those who are financially savvy, a question
My car got broken into a few years ago and my debit card got stolen. I never replaced it. I use credit cards for things I can pay off at the end of the month and cash for the everyday things - coffee, occasional lunch, etc. Almost everywhere takes visa, mc or discover, so I don't see why you would really need a debit card anyway if you have credit cards.
|
| Posted 2/27/06 1:01 PM |
| |
|
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
Re: For those who are financially savvy, a question
This person doesn;'t have a credit card, because credit cards can really be a problem too. If you don;'t have a credit card, you can;t spend money you don't have.
|
| Posted 2/27/06 1:07 PM |
| |
|
luvsun27
Check out my cool glasses
Member since 5/05 8135 total posts
Name:
Kim
|
Re: For those who are financially savvy, a question
Why not get overdraft protection?
I use my debit card for just about everything...and there are times when the overdraft has kicked in. I just pay myself back (the overdraft) with my next deposit.
|
| Posted 2/27/06 1:08 PM |
| |
|
Shorty
.
Member since 5/05 30390 total posts
Name:
really
|
Re: For those who are financially savvy, a question
What about just being more careful w/ the debit card?
Check the balance often - there's a 1-800 number for every bank, AND he/she could also check online.
Thats what I do.
|
| Posted 2/27/06 1:09 PM |
| |
|
btrflygrl
me and baby #3!
Member since 5/05 12013 total posts
Name:
Shana
|
Re: For those who are financially savvy, a question
We use our debit card for everything but also check our account online all the time to watch the funds.
you can request a lower limit on your credit cards to slow down your spending or do the 24 hr rule...take 24 hrs to consider your purchase and if you need it go back to get it
|
| Posted 2/27/06 1:09 PM |
| |
|
Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
|
Re: For those who are financially savvy, a question
What about only using cash?
|
| Posted 2/27/06 1:11 PM |
| |
|
CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
|
Re: For those who are financially savvy, a question
Posted by marymoon
For a lot of people, debit cards cause BIG problems. They use debit cards and forget to count the amount in the check register, leading to bounced checks, fees, etc.
If this is a problem for someone, it's easy to say "well cut up the Debit card" but more and more places don't take checks and some places never did, like gas stations, etc.
Has anyone been in this situation? What would you advise someone? Is it better that they get a credit card for the palces where they can't use checks, so that at least you can;t rack up overdraft fees that way, or what?
Any advice?
I would suggest overdraft protection and set up the checking account so that if you overdraw on your checking account, it moves in money from the savings account.
I don't suggest getting credit cards for the stores that don't take checks. You may want to consider an AMEX card that you pay in full at the end of the month. Having too many credit cards can be a negative on your credit report even if you don't use them.
|
| Posted 2/27/06 1:12 PM |
| |
|
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
|
Re: For those who are financially savvy, a question
credit card can lead to overages as well (over the limit fee). Credit card will let you go over to some extent.
to not spend money is more in your head. createing a budget. know the difference between what you "need" to have to survive vs. what you "want" to live with.
checks are on there way out (hopefully sooner then later)
A debit card will not allow you to make a transaction if you don't have the funds (which can be good or bad depending on what your doing)
then again, if they are at the point where they are "just making it" they need to cut expenses and start catching up on debt. we have a budget but we have like a cushion in case something come up each month. if we don't spend it on something we don't have to do for the month, we make an extra credit card payment.
hope this answers your questions and helps your friend
|
| Posted 2/27/06 1:13 PM |
| |
|
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
Re: For those who are financially savvy, a question
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
ETA: This person is living paycheck to paycheck, but it's out of necessity and things beyond her control at this point, not out of extravagence.
Message edited 2/27/2006 1:18:15 PM.
|
| Posted 2/27/06 1:17 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: For those who are financially savvy, a question
Posted by btrflygrl
you can request a lower limit on your credit cards to slow down your spending or do the 24 hr rule...take 24 hrs to consider your purchase and if you need it go back to get it
You should never request to have your credit limit lowered.
This increases the ratio of debt to credit limit which will lower your credit score.
The best thing to do in this situation is to buy everything with your credit card. Get a credit card at the same institution that your bank is. Then every other day after buying stuff on the credit card... do an online transfer from checking to credit card to "pay" for the items.
Then you don't have to worry about overdraft.
|
| Posted 2/27/06 1:18 PM |
| |
|
CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
|
Re: For those who are financially savvy, a question
Posted by marymoon
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
Usually the only fee for overdraft protection is the interest accured while the funds are being lent. If you can pay off the overdraft right away, there shouldn't be interest.
|
| Posted 2/27/06 1:18 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: For those who are financially savvy, a question
Posted by marymoon
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
ETA: This person is living paycheck to paycheck, but it's out of necessity and things beyond her control at this point, not out of extravagence.
A lot of credit cards give you 5% cash back for gas and grocery purchases. You should be taking advantage of this!
|
| Posted 2/27/06 1:18 PM |
| |
|
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
Re: For those who are financially savvy, a question
Posted by DjPiLL
Posted by btrflygrl
you can request a lower limit on your credit cards to slow down your spending or do the 24 hr rule...take 24 hrs to consider your purchase and if you need it go back to get it
You should never request to have your credit limit lowered.
This increases the ratio of debt to credit limit which will lower your credit score.
The best thing to do in this situation is to buy everything with your credit card. Get a credit card at the same institution that your bank is. Then every other day after buying stuff on the credit card... do an online transfer from checking to credit card to "pay" for the items.
Then you don't have to worry about overdraft.
That's a good idea, too!
|
| Posted 2/27/06 1:19 PM |
| |
|
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
|
Re: For those who are financially savvy, a question
Posted by shamrock12472
Posted by marymoon
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
Usually the only fee for overdraft protection is the interest accured while the funds are being lent. If you can pay off the overdraft right away, there shouldn't be interest.
majority of banks consdier overdraft like a cash advance from a credit card these days.
Intrest accurs daily instead of monthly and at a much higher rate.
|
| Posted 2/27/06 1:19 PM |
| |
|
FelAndJon
needs to update her avatar pic
Member since 6/05 10212 total posts
Name:
Felice (aka LuckyBride2004)
|
Re: For those who are financially savvy, a question
Like someone else said, regular green AMEX requires you to pay off the card at the end of the month and doesn't actually have a limit. It is not a credit card, but instead it is a charge card (just their terminology). ALso, cash might be a better way to go so this person will only spend what they really have.
|
| Posted 2/27/06 1:21 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: For those who are financially savvy, a question
Posted by BabyBoy
majority of banks consdier overdraft like a cash advance from a credit card these days.
Intrest accurs daily instead of monthly and at a much higher rate.
Overdraft on a checking account really isn't as big of an issue as it sounds.
I have $2500 overdraft protection on my checking account. There have been a number of times where I only had say $60 buks in my checking account... and I needed to pull $100 from the ATM.
I pulled the money... it took the $40 from my overdraft. Two days later I would deposit $500 into my checking account and my bank automatically paid off the overdraft with $40 of that deposit. I don't even think I paid any major interest. If I did... it was like pennies for just two days of being over.
|
| Posted 2/27/06 1:22 PM |
| |
|
-Laurie-
Hi!
Member since 5/05 2536 total posts
Name:
|
Re: For those who are financially savvy, a question
Go into your bank and fill out a withdrawal slip and get your cash that way.. when the money is gone it is gone until you go back again....
|
| Posted 2/27/06 1:23 PM |
| |
|
CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
|
Re: For those who are financially savvy, a question
Posted by BabyBoy
Posted by shamrock12472
Posted by marymoon
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
Usually the only fee for overdraft protection is the interest accured while the funds are being lent. If you can pay off the overdraft right away, there shouldn't be interest.
majority of banks consdier overdraft like a cash advance from a credit card these days.
Intrest accurs daily instead of monthly and at a much higher rate.
The banks I worked with considered it a line of credit, not a cash advance. Most overdraft protection is considered a revolving line of credit. Check with your bank, I know Citibank, Chase and UBS do not consider overdraft protection a "cash advance".
|
| Posted 2/27/06 1:23 PM |
| |
|
JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
|
Re: For those who are financially savvy, a question
These are all really good ideas. I'm going to look into them!
|
| Posted 2/27/06 1:33 PM |
| |
|
luvsun27
Check out my cool glasses
Member since 5/05 8135 total posts
Name:
Kim
|
Re: For those who are financially savvy, a question
Posted by shamrock12472
Posted by BabyBoy
Posted by shamrock12472
Posted by marymoon
It's not overspending,it's groceries and gas, just forgetting to put them in! I'll suggest overdraft protection. Is there a fee for that? Do they still charge you if you go over the limit?
Usually the only fee for overdraft protection is the interest accured while the funds are being lent. If you can pay off the overdraft right away, there shouldn't be interest.
majority of banks consdier overdraft like a cash advance from a credit card these days.
Intrest accurs daily instead of monthly and at a much higher rate.
The banks I worked with considered it a line of credit, not a cash advance. Most overdraft protection is considered a revolving line of credit. Check with your bank, I know Citibank, Chase and UBS do not consider overdraft protection a "cash advance".
I agree. I have Bank of America and it's considered a line of credit. I think the most interest I have paid is like $1, because I always pay myself back as soon as the overdraft kicks in...I hate to see a balance on it!
|
| Posted 2/27/06 1:41 PM |
| |
|
KaRiSsA
~*~*~*~*~*~*~
Member since 5/05 4646 total posts
Name:
KARISSA
|
Re: For those who are financially savvy, a question
Posted by btrflygrl
We use our debit card for everything but also check our account online all the time to watch the funds.
We do this too. No more credit cards for us.
|
| Posted 2/27/06 1:43 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: For those who are financially savvy, a question
Posted by KaRiSsA
Posted by btrflygrl
We use our debit card for everything but also check our account online all the time to watch the funds.
We do this too. No more credit cards for us.
Be careful. Strictly using debit cards can be especially risky if your account ever gets compromised.
Why you should NOT use debit cards for purchases
|
| Posted 2/27/06 1:53 PM |
| |
|
| Pages: [1] 2 |
