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Again, I'm speaking from a purely US perspective, but there is no good reason to use a debit card instead of a credit card, for the same purchasing patterns. Yo
by thrower123 5y ago
Again, I'm speaking from a purely US perspective, but there is no good reason to use a debit card instead of a credit card, for the same purchasing patterns. You have better fraud protections, you don't worry about overdrafts or transaction reordering, you get a month interest-free loan if you pay back your balance every month. You get cash back or reward points or etc. And if some emergency comes up, you have credit you can call on if you need it.
The argument for debit is basically "I cannot control my spending without a hard limit". Everything about debit is the same as credit cards or worse.
- wara23arish 5y agoI think the argument you mentioned is actually worth it for some people. Credit card interest rates are really high and people are better off getting charged a one time overdraft fee rather than buying stuff they cant afford and get saddled with high interest credit card debt.
- rootusrootus 5y agoHa, it's true, the limit enforced by a debit card is handy. I love my wife dearly, but her spending habit is 'if it is in the account, I can spend it.' So after trying various strategies, we just settled on keeping a debit account specifically for routine household purchases, groceries, etc. It is budgeted exactly what we plan for, not a dollar more, and she knows that when it's gone it's gone. That's not strictly true, of course, we replenish if we buy a lot of groceries in a month, but it serves as a useful signal for her that she's spending more than the generous amount we budgeted for this purpose.