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debit versus credit versus cash

April 11th, 2016 at 09:57 am

Interesting thread about how to spend money and use your debit card. I know many who follow Dave Ramsey say "use a debit card." I think even Dave Ramsey has said it's okay.

But I have to disagree. I'm a credit card user without an issue. But I think a debit is too easy to abuse. I think if you have a problem with spending the only way to curb it is cash. If you have trouble with credit cards it's just as easy to spend on a debit card. The bank will keep letting you spend and you'll rack up overdraft fees.

I also think that it's super easy to spend without following spending by swiping a card. But if you had cash and tracked every penny it's harder. Also if you are married or partnered up and sharing an account it's easy for both parties to overspend.

I find we need a CC to track our spending since we don't use cash. Also because we both spend independently it prevents overdraft. But this has worked for 15+ years and we aren't big spenders and haven't ever paid interest. So I'm not concerned.

But for people getting out of debt? I wonder if cash doesn't make it easier?

8 Responses to “debit versus credit versus cash”

  1. Ima saver Says:

    I have never used a debit card.

  2. creditcardfree Says:

    I think cash is a very good approach for those that are abusing or overspending in any way.

  3. butterscotch Says:

    Cash burns a whole in my pocket; to easy to spend. Debit I am much more careful with because I don't ever want to be declined. I think I have overdraft from my CU, but I don't know for sure. I kind of don't want to know, that way I only spend what I have. Actually, I spend less than what I have because I never want to get too close to zero. I have never been declined, but I don't want to start because I would be so embarrassed and I'm very self-conscious in public.

  4. LivingAlmostLarge Says:

    Butterscotch that's an interesting point. Cash burns a hole in my pocket but I would think people wouldn't care about swiping and if they treat debit cards like CC they swipe and are never declined?

    Ima do you only use CC?

    CCF I know you use CC for rewards. But I was thinking cash is gone it's gone.

  5. PatientSaver Says:

    I have never used a debit card; they don't offer the same protection to consumers that a credit card would if it were stolen. A thief who got a hold of your password could empty your account in seconds and you'd have no recourse, but you'd have $0 liability if someone maxed out your credit card, provided you reported the theft as soon as you became aware of it.

    A credit card also offers some protection against defective purchases; you can always request a hold on a purchase payment while the card issuer investigates a dispute; you can't do that with a debit card, which is the same as cash. It's final.

  6. CB in the City Says:

    I use a credit card for everything I can (and pay if off each month). I find a debit card more tedious since I have to make entries in my check register. And, as PS says, it doesn't offer the protection that credit cards do. I hardly ever use cash.

  7. ThriftoRama Says:

    I think cash is THE way to reign in spending. There is something final about when the envelope is empty, there's nothing left to spend.

  8. LivingAlmostLarge Says:

    There is I think with cash. I find CC easy to use and easy to reign in spending but spending isn't a problem. For those with a problem I think cash is the way to go. But what happens if you lose the cash. UGH

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