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Unfortunately, those same studies (you're referencing a Dun & Bradstreet study with that 18%) show that debit cards with a VISA/MasterCard logo on them increase
by clauretano 14y ago
Unfortunately, those same studies (you're referencing a Dun & Bradstreet study with that 18%) show that debit cards with a VISA/MasterCard logo on them increase spending just as much. It's all about the lack of transparency, i.e. it hurts less to pay with plastic.
I can't find an actual link to that study, unfortunately, but here's an article based on the info in that DNB study: http://seekingalpha.com/article/20333-guide-to-credit-cards-how-credit-cards-encourage-you-to-overspend http://seekingalpha.com/article/20333-guide-to-credit-cards-...
- manveru 14y agoNice. I always withdraw at a bank and pay cash anyway, this being rural Germany, there's not a whole lot of places that take a credit card.
- clarky07 14y agoThat is unfortunate, but I never said you should use debit instead. Though if I remember correctly the study suggest that debit spends more than cash, but less than credit. FWIW I use a debit card most of the time because it is much more convenient than cash with the knowledge that I am spending more than I otherwise would.