Cash or debit card?

[Pupart]

Out of these two choices which do use most while shopping, debit card or cash?

I use my debit card, but after reading this blog I may start using cash more .
I know I am more careful about not giving into impulse buys when I have cash.

The blog:

http://blogs.consumeraffairs.com/bosworth/

[PrincessPerky]

I use debit,because it comes with anonline 'reciept' so I can track it better...plus we never have cash, so we considerit 'funmoney' (it comes as gifts) just easier for us.

Reading the blog I can understand the point....but paying the gas to go to the bank..eh..not to sure I care that much if retailers know exactly how many gallons of milk I drink a week....Oh and how much gas I use..

[JanH]

I use a debit card which is funny because I really resisted at first. My family thought I was nuts not to want the convenience. It has kept Hubby from using his credit card, because he hates to use cash. I kept having to get more cash out for expenses or pay for checks, so I finally buckled and went to the debit card system. By recording everything in the budget almost immediately, it keeps us from spending because we can see how much of a category is left. My best defense is to stay out of the the stores. I didn't think of them recording what I buy. Probably bores them to tears though. Except for identity problems....hmmmm.

[creditcardfree]

I'm a debit card junkie!! I used it just today at the post office for $2.55!! I rarely have cash in my wallet.

[Bookie]

I don't have a debit card, although I have the option with various accounts.

My out-of-pocket expenses are paid with cash. I have a weekly "allowance" that covers food, gas and sundries. Operating on a cash basis provides me with a psychological discipline I find effective. Spending dollars is so much harder than signing on some dotted line.

But . . . I live alone and have no one to buy for but myself. That makes things smpler, easier to plan and organize, and requires few compromises.

[LuxLiving]

It is easier for me to spend cash - so I keep very little cash and use the debit card for most planned expenditures...it takes more discipline to use the debit card for me - I have to write an entry in the checkbook and in the budget software, and then balance the check book later and I know that it takes me extra time to cover all these bases. Doing it this way slows me down on my cash spending and my debit spending and my check writing spending which works out well for our bottom line.

[usnavy_233]

I've always used my check card but recently I decided to start taking advantage of my rewards card so now, I put almost all of my expenses and bills on my C/C and pay it off the following week. It's the same as spending the cash in my checking account and I get free money by doing it. I'm a big fan of free money!

[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. Hubby however uses only cash..he doesnt like cards of any kind.

[Broken Arrow]

Credit card.

[crow67]

I use cash. I take out a certain amount each week for what's needed. I write checks for groc and bills, and things that come up unexpectedly. A debt card seems like it would be too much like a credit card and somewhere along the way I would forget to write something down or hub would forget something as well. Cash works well for us.

[TMoney]

I try and keep a little bit of cash on me, but it's for everyday spending and usually about $60 or under. If I'm shopping or buying some other item, i try and use my debit, but if it's a pricey item i use my cc to get the rewards!

[CHUBROCK]

I try to use cash as much as possilbe. Once in a while my wife will ask me to stop at the store and pick up some milk, oj, bread...instead of stopping home to get the cash, I will just debit it and then make the adjustments to my budget on the weekend.

[LivingAlmostLarge]

CC is the same as a debit card.

[CHUBROCK]

Not true. With a credit card there is a chance that you may not pay the bill on time. With a debit card, the money comes right out of your checking account. A lot of people may use their debit card like a credit card because they do not understand the differnce. With me, the debit card is the same as cash. If I don't have it (in my account in this case) I can't buy it. With a credit card, if you don't have the cash, you can still buy it and pay interest on it while you figure out how to pay it off. So there is no way that you can tell me that credit cards are the same as debit cards.

[TMoney]

Originally Posted by CHUBROCK

Not true. With a credit card there is a chance that you may not pay the bill on time. With a debit card, the money comes right out of your checking account. A lot of people may use their debit card like a credit card because they do not understand the differnce. With me, the debit card is the same as cash. If I don't have it (in my account in this case) I can't buy it. With a credit card, if you don't have the cash, you can still buy it and pay interest on it while you figure out how to pay it off. So there is no way that you can tell me that credit cards are the same as debit cards.

I agree!

[tinapbeana]

Originally Posted by CHUBROCK

With me, the debit card is the same as cash. If I don't have it (in my account in this case) I can't buy it. With a credit card, if you don't have the cash, you can still buy it and pay interest on it while you figure out how to pay it off. So there is no way that you can tell me that credit cards are the same as debit cards.

while this may be the case with you, not everyone shows such restraint when it comes to their debit card. many banks offer 'complimentary' overdraft protection of 500-1000 dollars and there are those who will spend money that isn't in their checking account knowing the overdraft will kick in to cover it for the time being. with fees of $25 and up, the 'interest rate' on those debit purchases can far exceed those on credit card purchases.

so, in the regard of being able to buy items when you don't actually have cash on hand for them, debit cards and credit cards are often the same. ditto for paying fees/interest for the priviledge of making a purchase before you actually have the funds for it.

[ThisTime]

Question- I heard that if you use your debit card as credit then you get charged interest, is this true?

I don't think it is with my card because I haven't noticed any such charges, but maybe for another bank???

[poundwise]

Credit card = credit is extended to you for your use

Debit card = your money is debited from your account

They certainly are not the same. I don't think the poster above meant that they were, only that as a payment method, the process (pulling out plastic) is the same.

Fact is, a debit card can be a plain ATM card (that requires a PIN) or one that bears a VISA logo (and the transaction can be processed in the same way as a credit card) but either way it is still a debit card.

Now, back to the original question... Cash or debit card?

Of those two, I use cash more often.

Include credit cards into the mix and I would say that I probably use my credit card slightly more often than cash. But, I pay the balance twice a month and thus am using as a cash-flow tool, not as a means to borrow funds for purchases.

[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.

[LivingAlmostLarge]

Sorry I should say why bother using plastic? If you are going to use a debit card why not use a CC? Cash or CC. I mean all you have to do is pretend your CC is a checking register. Hmm..then you track every charge on there against your bank balance and determine what you can or cannot spend.

Considering a lot of people overdraft A LOT on debit cards, it has to do more with lack of financial restraint than whether a CC or debit card is used. An overspender is an overspender no matter what is in their hand.