Every once in a while, I write an article get blasted full of expectation in the comments and this is one of those articles. I am not and never was a fan of debit cards. I believe, however, recognize that all of the plastic credit card payment the cult-like following for its debt avoidance has advantages.
I’ve often said that people (I use the word “love” here, people) love their debit cards. If you need proof of their affection only what is happening Bank of America if they would charge their debit card customers $ 5 per month, have just announced the map to search. Their customers went nuts, the media went nuts, the Bank’s website inexplicably went for several days, and hundreds of thousands of people moving their accounts (and money) for credit unions. Bank of America, and all other banks, had announced the debit card fees, quickly agreed to take the pressure and backed by the credit card charges.
So, what are the disadvantages of debit cards? Well, first they are a direct link to your checking account and your money. I do not know how has everything that a direct connection, so I do not carry a checkbook is everywhere, always. If the card is stolen or otherwise compromised, then the money is at risk is yours, not a credit card company. This is only the first reason, and there are many more …