Advice For Young Men: Credit Cards

[roland12]

Re: Advice For Young Men: Credit Cards

Ive never had a problem using a debit card.

[Fresh Tendrils]

Re: Advice For Young Men: Credit Cards

Debit cards are the worst thing ever for the consumer. Get a credit card instead and pay it off each month.

A debit card is a direct link into your bank account. It can cause you to be withdrawn if there is an error and then the domino effect of bounced checks, fees, etc. starts.

With a credit card, you can always dispute the charge before you pay the bill, with a debit card, they already have the money....Your money.

If you're overdrafting your account using a debit card, then simply deciding to use a credit card isn't attacking the real problem here.

[fistofrage]

Re: Advice For Young Men: Credit Cards

If you're overdrafting your account using a debit card, then simply deciding to use a credit card isn't attacking the real problem here.

You either didn't read or understand my post. I've seen vendors make errors in the past and put in the wrong amount. I've seen DTE energy, AT & T, and other utilities double draw funds out of accounts, etc. My point is, never have anything linked directly to your bank account.

Once that money is gone the honus is on you to prove they made an error. With a credit card, you can dispute the charges before you pay and its the vendors responsibility to prove they have claim to the funds.

[KG]

Re: Advice For Young Men: Credit Cards

Being that USA is a nation of debt, I would say it isn't taught in 95% of american homes. Instead the motto in the USA is live the American Dream, get a house with a white picket fence, get married, get a dog, have 2 or 3 kids, 2 cars.

However in school it isn't taught how to properly go about living the american dream. So in the past 10 years with the American everybody should own a home program, you had millions of people getting homes with low payments for the 1st year.

What ended up happening was you had millions of people getting houses on credit, when in reality their income level was way too low in the 1st place to even get that house. Which is why you see so many homes in the USA in foreclosure now.

Because to me, if you got to rely on 2 incomes to pay the monthly mortgage on a house, then you shouldn't get a house, you should stay in an apartment or rent the house.

Also to me that was always the flaw in the american education system. They teach stuff that isn't needed for the real world. I mean why are they still teaching about dinosaurs, shakespeare, making stuff out of clay and crap ? Instead of teaching about debt, credit cards, loans, etc.

It is the same way with people get their income tax check. People go buck wild and buy the biggest & most expensive thing they can find, instead of paying off their debt with it.

I find it real sad when I see generation after generation after generation living in the projects or trailer parks. The grandma, the parents and then the kids with their own kids. It is like wow.

I agree with a lot of what you said, especially the part that debt can accrue at a young age because of reckless spending, student loans, etc... but some of those people you are talking about are using their credit card just to get by, not live extravagantly. People make the assumption that all debt is accumulated because people are reaching for things they can't afford. There are a lot of people who using to compensate for things like job loss or other unexpected life events.

You either didn't read or understand my post. I've seen vendors make errors in the past and put in the wrong amount. I've seen DTE energy, AT & T, and other utilities double draw funds out of accounts, etc. My point is, never have anything linked directly to your bank account.

Once that money is gone the honus is on you to prove they made an error. With a credit card, you can dispute the charges before you pay and its the vendors responsibility to prove they have claim to the funds.

Exactly, especially with places like hotels that often put holds on your account. Credit Card companies are generally easier to deal with than banks when it comes to disputing your $ although banks are getting easier as identity theft rises. Not to mention these days with direct bill-pay the ease of getting new credit card far outweighs the ease of changing all the accounts that are tied into your banking account.

T-Magic, if you're young and looking to establish your credit in hopes of buying a house/car then responsibly using a CC is a good way to go. I also believe folks with a house/kids that aren't sitting on nice egg should have one just in case of an emergency.

[Trevytrev11]

Re: Advice For Young Men: Credit Cards

Debit cards are the worst thing ever for the consumer. Get a credit card instead and pay it off each month.

A debit card is a direct link into your bank account. It can cause you to be withdrawn if there is an error and then the domino effect of bounced checks, fees, etc. starts.

With a credit card, you can always dispute the charge before you pay the bill, with a debit card, they already have the money....Your money.

I agree that credit cards are a better choice (read my 10+ posts in this thread). My point is that if you are determined to have the money come out of your checking account, step into the 2000's and use a debit card. It's more efficient for everyone.

However, if someone isn't a responsible shopper, a debit card is probably a better tool. They are limited to spending what they have in their account instead of what ever limit the credit card company has assigned to them. Overdraft charges are, of course, a risk, but if one knows how to balance a check book, it should be no issue. The main trouble people get into with checks is trying to float that money and hoping that the check isn't cashed for a day or two while they rack up another charge in hopes that they won't get dinged for it.

If people treated their checks like debit cards and basically assumed that the funds were gone as soon as the check was written, most people would avoid 99% of their fee's. Instead someone writes a check, it doesn't get cashed for a few days and they think they can sneak a withdraw or an ATM purchase before it gets cashed and then they get hit with $ in fee's.

In my life, I've only been double charged for something once and it was a $10 lunch like two months ago. I just don't see it happening often enough to deter someone from using a debit card. If you are used to writing checks, a debit card is essentially the same thing, but instant, with a few quirks.

I agree that a credit card is the way to go, but it can also be a huge pitfall for the wrong person. Letting someone spend money they don't have can always be dangerous for those who don't know or don't care about the implications.

[Fresh Tendrils]

Re: Advice For Young Men: Credit Cards

I don't use my debit card to pay bills or have it on any of my "accounts" (Netflix, Amazon, etc). When I use it in stores, I charge it as credit and never use my pin number unless I'm at the bank.

[Speedy]

Re: Advice For Young Men: Credit Cards

I use my debit card habitually and have not had a single problem.