Enough with the Credit and Debit Card Confusion
Frank Curmudgeon – clearly knowledgeable in the world of finance – is wondering out loud why folks use debit cards instead of credit cards. He appears proud of a history of never having used his own debit card to purchase anything.
Frank, using debit cards in place of credit cards is not all about logic, although some of it can be.
This is the comment I left on Frank’s post:
It’s not as mystifying as you profess. Some folks dislike credit card issuers and/or their fees and policies. Other folks are coming out of a bad relationship with credit cards and are exploring a more rational lifestyle. And I will give you my personal reason: Free rewards checking account that earns rewards plus pays 4.5% interest on all balances under $25k but requires 12 debt card transactions per month. Try getting that benefit with your credit card. If you can’t get any of that then you are too ingrained in our debt culture to understand.
Many people now perceive using debit cards to spend their own money as a blow against the credit card industry and our debt culture. It is a form of rebellion against debt-driven spending at all levels that brought our economy to its knees. I commend them for this “illogic.”
Why is that confusing?
Frank believes that overdrawing a bank account with a debit card is the spending equivalent of running up a credit card balance.
How many folks go into credit counseling, foreclosure, or bankruptcy solely because they paid too many overdraft fees using a debit card?
How many banks let their debit card customers generate thousands in negative bank balances?
Now compare those numbers to the millions of credit card abusers in our society.
Thank you. I will now rest my case on that point.
As for the logic, I argued that in my comment. There are some very good deals to be had in high-interest free checking if you are willing to leave the credit cards at home and use debit cards. Don’t believe me? You can find them at this CheckingFinder site.
Don’t get me wrong. I enjoy Frank Curmudgeon’s writing and agree with a lot of it. But sometimes you need to think outside the logic box. On this issue, he didn’t.