SMS wrote:
On 10/3/2011 8:07 AM, Steve B wrote:
wrote

Exactly. That's been the only rational argument for the use of debit
cards--it's good for people that are not able to properly handle credit.
The rest of that rant is equally bizarre.

What? That you stop spending when you're pocket is empty?

"Your," not "you're."

The use of a debit card frees you from the need to carry a lot of cash
or to write checks. It makes little sense if you are good at handling
your finances because with a credit card you get mandated legal
protections plus you often get rewards worth up to 5% of the purchase.
For example, I get 4% cash back on gasoline with my Costco Amex card.

If you are bad at handling your finances, a debit card may be a good
idea, and it's no worse than withdrawing cash from your bank and paying
with cash. You still can't spend money you don't have.

A debit card that does not require a PIN (one with a MC/Visa logo) is a
very bad idea for other reasons, but it does not allow you to spend
money that you don't have.

I'm pretty careful with my money, so I don't know the specifics, but
don't banks offer overdraft protection on checking accounts, for a fee,
of course? If they do, would that protection extend to an overdraft
caused with a debit card? If so, that would negate the argument that a
debit card will protect you from overspending.