Throw Away Your Debit Card...Promise!

Document created by sabrinakozin on May 20, 2016Last modified by amara.mastronardi@socialedgeconsulting.com on Dec 5, 2016
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I sound like a maniac right....did she just say the unthinkable!? Throw away your debit card? What am I supposed to use then, cash? No! What you should be using is your CREDIT CARD! If you don't have one get one. Heres why.

 

Recently after taking a very intriguing finance class, my teacher told everyone in class that we should throw away our debit cards and stick to using our credit cards. He said it PAYS to use a credit card whereas a debit card has no incentive or award attached to it. For many credit cards that are set to a limit there are incentives attached with every purchase you make for instance..

     Earning cash back

     Frequent flier miles and points

     Rewards for free stuff

 

So what does all this mean, what am I trying to get at? Instead of just relying on your debit card you should use a credit card to pay for your everyday things, at the end of each month pay off the entire amount of your purchases on the credit card, and you will pay absolutely no interest and instead begin to rack up rewards points from your credit card such as frequent flier miles, cash back,etc (depending on the credit card you own). My finance teacher said for example, he has a credit card with a $5,000 limit on it which offers 5% cash back. If he spends $5,000 on the card each month he earns an additional $250 for doing absolutely nothing, and he always pays his credit card payments on time. That additional reward money could be used to pay bills....like STUDENT LOANS or put away into your savings! You just need to be able to control your spending with a credit card, and be responsible. Plus if you always pay back your credit card spending on time this will help to build/maintain good credit which you will need in the future for applying for an apartment, house, car, additional loans, etc.

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