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I have been using cash back credit cards for all my living expenses other than taxes and mortgage for at least 15 years now. As a matter of policy the balance is paid in full every month. I cannot remember the last time I was unable to pay the full balance in a given month; I think it was in 2006 when the heating system in my then condo died and graduate school tuition was due in the same month. I was receiving tuition reimbursement but the tuition was due up front and reimbursement obviously came later after I passed the class.
Prepaid cards are a good option as well. Unlike with debit cards, money is not taken directly out of your bank account. You put money "on the card" and that is the money you use. When the money runs out on the card it can't be used. Also prepaid cards offer some of the same benefits as credit and debit cards. What's more you don't need a regular bank account in order to use a prepaid card or "borrow" money as with a credit card that you have to pay back later. However, prepaid cards have shortcomings as well. Depend on where or how you get your card there is less consumer protection and fees can vary. Prepaid cards also don't help you build credit..but with the looming financial crisis, credit will be the last thing that will be allowed. It's cash that you will need...!
Prepaid cards can also work as an alternative to a checking account at a bank or credit union. If you can’t or don't want to open a checking account, a prepaid card allows you to enjoy the convenience of paying with plastic. In some cases, prepaid cards can cost less to use than a bank account. Finally, prepaid cards can provide access to services like online bill pay and mobile check deposit–without the need for a full-fledged bank account. Yes, you can live without a bank account..!!! Due to the financial situation in the country (and if you aren't aware of it, you'd start doing your homework) you never know if your money in the bank is going to be "available" to you. You do know that the money in the bank belongs "to the bank" and they can do with it as they please pretty much. It's only yours once you get it in your hand. Also many of you should be aware of banks like Wells Fargo and recently Chase Bank who forgave all debt for their Canadian cardholder customers and jumped ship from Canada.
Cash is king above all else. That includes above credit cards, debit cards, or prepaid cards. Cash allows you to maintain your privacy away from the snooping eyes of banks and other means of intruding on your privacy. In addition, with the recession that is happening and its getting worse as we speak, especially with the new tariffs that kicked in September 1, costs are going to get higher for everything from food to lawnmowers. As it gets worse, your bank could have a bail-in where they confiscate your savings etc...and give you an I.O.U. in return. Just think of 2008 on steroids...!
Now, having said all that. I understand why each person would make the choice to use a credit card, debit card, or prepaid card. It's up to each person depending on their circumstance. However, be aware that "circumstances are changing greatly" and you will have to adjust your financial interactions...Good Luck
The FDIC and NCUA insure deposits up to $250k per account type per bank or credit union. If the FDIC fails, the country will be at the bartering toilet paper for canned tomato stage and likely in some sort of Zimbabwe or Venezuela style hyperinflation where paper money or equivalent is effectively worthless
I was listening to Frank Abagnale talk about his life. He has spent the past 40 years working for the FBI. He is an interesting person to listen to. Some years back a movie about him was made based on his book, Catch Me If You Can
In a question and answer segment he was asked about debit cards. He commented that he never uses them. That a debit card does nothing for you and can open you up to fraud. He says he uses credit cards for everything. When the bill comes he pays off the bill.
Frank mentions that with a credit card, if you suspect fraud, you call your credit card company and they will suspend the payments to the fraud. They will cancel your card and send you a new one right away.
With a debit card you might lose your money, wont have use of it until an investigation takes place. It might take weeks to get your money back.
While a credit card used wisely builds your credit, a debit card does nothing for you.
With a credit card you are using someone else's money during the month for free, as long as you pay off the balance when the statement comes. Your money stays in your bank and only comes out when you make that payment.
The idea sounds intriguing. Anyone else using a credit card to pay the bills and then paying it off each month and not using a debit card?
I do for that very reason. Plus a couple of others not cited:
1) Cash flow.
2) I use a HHonors AMEX that gives me points for purchases. I can't remember the last time I paid for a hotel room. My daughter, a starving graduate student, has attended several conferences by dint of the Hilton Honors points we've amassed.
LOL at “the coming recession” and somehow it already being here. What a joke! The economy is doing great and that’s not changing overnight. I wish it would, I have cash, I’d love to get some great buys in stocks but that’s not reality. These Sky is falling people are hilarious.
LOL at “the coming recession” and somehow it already being here. What a joke! The economy is doing great and that’s not changing overnight. I wish it would, I have cash, I’d love to get some great buys in stocks but that’s not reality. These Sky is falling people are hilarious.
And which of the other 125 posts are you replying to?
I was listening to Frank Abagnale talk about his life. He has spent the past 40 years working for the FBI. He is an interesting person to listen to. Some years back a movie about him was made based on his book, Catch Me If You Can
In a question and answer segment he was asked about debit cards. He commented that he never uses them. That a debit card does nothing for you and can open you up to fraud. He says he uses credit cards for everything. When the bill comes he pays off the bill.
Frank mentions that with a credit card, if you suspect fraud, you call your credit card company and they will suspend the payments to the fraud. They will cancel your card and send you a new one right away.
With a debit card you might lose your money, wont have use of it until an investigation takes place. It might take weeks to get your money back.
While a credit card used wisely builds your credit, a debit card does nothing for you.
With a credit card you are using someone else's money during the month for free, as long as you pay off the balance when the statement comes. Your money stays in your bank and only comes out when you make that payment.
The idea sounds intriguing. Anyone else using a credit card to pay the bills and then paying it off each month and not using a debit card?
Yeah.
That's literally how I have always done it.
I don't even have a debit card (and never have). I have never come up with one reason to ever have one.
I was listening to Frank Abagnale talk about his life. He has spent the past 40 years working for the FBI. He is an interesting person to listen to. Some years back a movie about him was made based on his book, Catch Me If You Can
In a question and answer segment he was asked about debit cards. He commented that he never uses them. That a debit card does nothing for you and can open you up to fraud. He says he uses credit cards for everything. When the bill comes he pays off the bill.
Frank mentions that with a credit card, if you suspect fraud, you call your credit card company and they will suspend the payments to the fraud. They will cancel your card and send you a new one right away.
With a debit card you might lose your money, wont have use of it until an investigation takes place. It might take weeks to get your money back.
While a credit card used wisely builds your credit, a debit card does nothing for you.
With a credit card you are using someone else's money during the month for free, as long as you pay off the balance when the statement comes. Your money stays in your bank and only comes out when you make that payment.
The idea sounds intriguing. Anyone else using a credit card to pay the bills and then paying it off each month and not using a debit card?
Yes, I do exactly that and have for years. And you definitely want a reward credit card to reap an extra benefit.
yes.
pay every month.
only use cards with no annual fee.
costs me nothing.
i make money.
every few months i get $100 cash back.
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