Personal Finance
Debit Cards Not The Easy Solution You Might Think: Why You Want To Think Twice Before You Swipe
If, like thousands of credit-conscious consumers, you rely on your bank-issued debit card for daily purchases, you might want to reconsider.
As this article from the Today show at MSNBC.com demonstrates, there are plenty of reasons to keep that card in your pocket.
The most damaging problem, in my view, is the overdraft risk. You see, when you swipe a credit card and your purchase is over your limit, you simply don’t get approved for the transaction. Embarrassing, sure, but it doesn’t wreck your bank account.
But if you swipe a debit card for that purchase, even if you don’t have sufficient funds in your checking account, the bank may very well approve the transaction — and slap you with a $30+ overdraft charge in the process.
Why would banks do that? Simple: it’s easy money.
Read the article, and reconsider that debit card reliance.
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