Cash or debit card?

[Ima saver]

Re: Cash or debit card?

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]

Re: Cash or debit card?

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]

Re: Cash or debit card?

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

[cptacek]

Re: Cash or debit card?

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]

Re: Cash or debit card?

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

[Jazzmint98]

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!

[tripods68]

I too use Debit Card like water. It's been really hard to spend save extra when you have a Debit Card at your disposal at anytime.

Part of my New Year's Resolution is to switch back using cash more often partly to limit my spending and save only what I have. Whatever is left at the of the month goes toward our savings. After reviewing my expenses for the last 5 month, I noticed I had over 100 ledger ATM withdrawal like $3.50 Starbucks Grande Mocha, or $6.00 for lunch at Taco Bell =$500.00 a month splurge. By switching to cash, I will carry certain dollar amount limit $10.00. One of the way, i hope to accomplish this goal towards more saving is leave home without my Debit Card to work everyday. I noticed that I spend more on lunches and breakfast outing on days I go to work. This way, I spend only what I have on my pocket which is $10.00. I figured I could save extra $300 a month or $3600 a year if apply myself to this budget with the goal in mind for 2008.

[kristinecfp]

I use debit cards, but as a financial planner, I have mixed feelings about cash vs. debit cards...

On the one hand, if you use cash, you are (hopefully) more aware of your spending, and are less likely to overspend. With debit cards, it's easier to overspend because it doesn't "feel" like you're spending money (for some people - not true for everyone of course).

On the other hand, when you use cash it is harder to keep track of your spending. I can't tell you how many clients tell me they spend $500-1,000 in cash and have no idea where it goes. With a debit card, you at least have a paper trail of where the money went.

Every person is different so there's no one right answer. Use whichever method works best for you and your finances.

[marsel]

my credit cards!

[Caoineag]

I never use to use cash. Harder to track. Now that I have a handle on my expenses, part of my allowance is in cash. I hate the fact that its basically untrackable but it does allow me to spend a little less when I want to grab a snack or fast food meal because there is no $5 min. to make me feel guilty. I have always been a big fan of debit because mine has $0 liability and it automatically categorizes spending.

I have a friend who needs her money in cash so that she doesn't impulse spend til oblivion but I have never had that issue. In fact, for me, cash used to be easier to spend. Now it doesn't matter what I use.

[Landwatch]

Though I have a card still I prefer using cash. When it is hard cash I am more careful with what I am buying, however with card I get careless and lose it all in a clean swipe. So its hard cash that helps me spend less.