Cash or debit card?

[poundwise]

After Sweeps' comments I want to say (a) I agree and (b) I only have an ATM/debit card that requires a PIN and even that I use sparingly. I would not have a VISA logo'd debit card.

[Ima saver]

I do not have a debit card nor do I want one. I use cash and charge large items, which I record in a little notebook I carry with me. Then I pay the card off in full each month, but I also earn cash back from my credit cards.

[Ima saver]

I do not have a debit card nor do I want one. I use cash and charge large items, which I record in a little notebook I carry with me. Then I pay the card off in full each month, but I also earn cash back from my credit cards.

[BGmark814]

I found I spent about 20% less with cash than when I used my debit card

[lrjohnson]

Originally Posted by Coleroo

I hate using cash... it slips through my fingers and then I dont know where it's gone! With a debit card, I have a record of where it goes PLUS i *think* more about what im about to spend.

This is also my experience, though I know that studies have shown we aren't among the majority.

However I know that debit cards can have drawbacks so I'm thinking of switching to credit, maybe cash back/rewards maybe not, but always paid in full every month.

I don't like cash, but I know I do need some for emergencies.

[Broken Arrow]

That's an interesting thought there, because for others, the psychological effect of seeing physical money slipping away from one's hands, and into someone else's is enough to cause one to spend more carefully.

I'm not disagreeing or agreeing with anyone. I just find it interesting how different people view the same thing differently, and why.

[LuxLiving]

I'm with Coleroo and lrjohnson on this one - if I have cash it just disappears. But I don't use my debit card for anything but groceries and gasoline, which are both line items in the budget and already have a cap.

Hubster is just a restrained spender no matter - cash, check, debit or credit, he's usually pretty tight - we don't dare however send him in armed w/any of the above at a computer store. My weakness is bookstores, so I just avoid them anymore - there are already too TOO many books here that have yet to be read, so once they're all read (anyone got a couple of spare lifetimes laying around?) then I can go buy more.

[Aleta]

LuxLuving: I have a weakness for books as well which is why I avoid the book areas in stores. I have since developed a weakness (Ha Ha) for the library. I go on-line, request a book and it is sent to the library near me, less than 2 miles. I try to do all of my errands around picking up the book.

About the cash thing, I definitely spend less with cash because I only take out a certain amount. When I use the credit card - well we know - that there's a lot more cash on that to spend. Sometimes I have changed my mind because I didn't want to leave myself short in cash because maybe I had another place to stop before going home and I didn't want to run short of money.

[Little L]

We use our debit card for everything. I write a few checks per month for school things and tuition. Most bills are paid online and everything else is paid for with a debit card.

I enter transactions in Quicken whenever I make them so I always know my balance.

Cash goes thru my hands too quickly, usually on a soda here, a snack there, and before I know it, it is gone.

That said, I've been wanting to get a Visa CC to accumulate miles. I'm a bit hesitant though as the thought of having a large balance a month end (which I would pay off) scares me. I guess the possibility of using it and not being able to pay it off at month end makes me weary.

If I could pay it weekly, which I guess I probably could, I'd be happy with that.

I am considering going to cash for our personal spending, instead of having the money sit in our checking. Having cash would prevent us from spending more than we had in our personal spending accts.

[pearlieq]

Originally Posted by sweeps

If you put a gun to my head and prevented me from using my credit card, I'd use cash way before a debit card. All a debit card is good for is for opening yourself up to identity theft and overdrafts. With cash you can do envelope budgeting and you get an extra measure of privacy in your purchases.

That pretty much sums up my take on it. If I can't use my credit cards I use cash.

I have no use for debit cards. To me they are simply a great way to run into trouble. If my credit card is stolen or if something goes wrong with a charge it may affect my account, but has no real affect on the money available to me in the bank. Even if they can credit my account back in a day, I'm still out that money for a while.

My debit card offers much less purchase protection than my credit cards, no rewards, and makes it difficult for me to pay for purchases from different money sources. Plus it would be maddening to try to keep daily track of what DH and I spent.

[Ima saver]

I don't own a debit card and never will. I only put enough money in my checking account to cover my monthly bills, nothing extra. If I don't have enough cash, I charge it and pay it off the following month.

[frugalmomof1]

I use a debit card for pretty much everything. It helps me track spending.
I am thinking about starting to use a rewards CC for all spending to earn cash back.

[Ima saver]

When I use my credit card, I do write down all the purchases in a little notebook.

[cptacek]

I use my debit card for most things, pay bills online, and use cash for food to help me stop spending so much there.

I don't know why I do this, but say I am going to Home Depot to, I don't know, buy something for a project. If the bill is > ~$200, I put it on my credit card. It is a rewards card, so I guess I am thinking of the cash back I'll get from a big purchase. I pay that credit card off every month, so I'm not getting charged interest. But, I probably do that because I balance my checkbook and get paid every two weeks. I try to keep the bare minimum in my checking account (moving extra money to a high yield savings account when I balance my check book), so if it is Wednesday and I get paid that Friday, I don't know for sure if the money is there at that instant. I can move money around, no problem, but the credit card gives me a few free days before I am in trouble.

[PRICEPLUS]

Cash is king. That is my mantra.

[click4credit]

I use a debit card the most rather than cash as it's more convenient. You do have to keep track of how much you are spending, I make sure I log into internet banking every couple of days so I know where are finances stand.

[krayziebone33]

I use cash mostly but not because I am afraid of impluse buys. I prefer cash only because I usually get coins and dollar bills back and I like to keep those and save them. I know it sounds crazy but its what I do. Whenever I use my debit card, I usually still round up to the nearest dollar and transfer the change to savings account.

[MArkoo]

i use everywhere debit card from favocard in tours in travels in europe in all world

[huffydeb2003]

I prefer to use a debit card. I don't like carrying around cash. I use my debit card as a credit card, generally, unless I want to get cash back. That way I am assured of getting buyer protection on the items I purchase. In addition, using my debit card allows me to better track my spending since my monthly statements categorize the debits (food, utilities, entertainment, medical, etc.). If I would use cash, I would have to write down the amounts each time, which IMO is just too time-consuming.

[nomorecredit]

As of a few months ago, I haven't used a debit card. I miss it sometimes (like getting gas, so much easier to swipe it at the pump then to go in.) but it's made a HUGE change, for me at least. I'm awful with impulse buys, little things. I would go to Walgreens or something for just shampoo and plan on spending the few bucks, but I would walk out with $50 of crap I don't need. But if I know I only have $20 left for the week, I'm only going to get the shampoo.

It is a pain and inconvienent in certain situations... but it's made a world of difference for me, at least! It was SUCH a hard adjustment (especially standing in the long line inside the bank on Fridays, looking longingly at the empty ATM! my job doesn't offer direct deposit, so...). When I have the actual cash in my pocket, I want to hold onto it more, but it was just too easy for me to spend the $$$ on the debit card, come home later and put what I spent in the register, then think "uh-oh, spent more than I wanted to."

It also helps me to think about the purchases I make more, being that if it's something I want that I don't have the money on hand for, I have to go to the bank at some point (a pain) and withdraw the $$$, and that gives me the time to think if I really need that new pair of jeans, or whatever the case may be!

I don't know if I'll go back to having a debit card for a loooooooong time!