when i use debit card..i dont get charge any extra money...if i buy a cappuccino for 5 dollar..i get charge with 5 dollar..end of the story with credit card..is easier to dont keep track of how much you spend and at the end of the month they charge you intreste on your bill why should i take a loan from a bank if i already have money lol?
What banks do that? You generally don't PAY interest if you pay the Total Amount Due on or before your due date every time. Basically, you can take some effort to spend only as much as the money you have in your bank (the good-as-cash money you have right now) using your credit card and reap the rewards of the CC without paying anything extra. Why is that so hard to understand?
I take a loan from the bank to pay for my coffee because the bank will pay me for using their money. It's money you're going to spend anyway, why not get pay to use it.
I use cash.......its all psychological you can swipe swipe swipe but if you have a 20$ bill in your hand your less apt to spend it......that's why casinos gamble with clay chips it's easy to throw out a clay chip or swipe a plastic card cause you don't see the monetary value.....with cash I have no over drawn no fees and no penalty for using cash.....be smart.....
+goffdroid I could see how that might be the case for someone who is immature and irresponsible. However, I don't buy anything extra simply because I use a credit card. If anything, I've SAVED money through rewards and cash back programs, never paying a single dime of interest. Since I've built my credit through intelligent use of credit cards, I get premier interest rates on mortgages or car loans if I so desire. I even qualify for cheaper insurance premiums!.....be smart.....
+Adam A So, you didn't find that last bit of his comment, "be smart...," to be snarky and condescending to people who choose to strategically utilize credit and leverage their buying power to their advantage?
Andrew Curley Credit is for fools who only want to put themselves into more debt, and the added stresses of headaches. Same goes for idiots who is mortgages. Why would you not want to buy something outright.
I hate the gas stations that charge like 35 cents extra for using a debit/credit card. It really pisses me off because that's like paying 2-5 cents extra per gallon (depending how much gas you buy). Now I know why reasoning for the charge, but I will still never pay just to use my debit card. That's like paying to spend your own money. Wtf.
***** I see your point, but I guess we've kind of accepted (as a society) that accepting cards is a convenience store owners pay for because it increases business. Of course no owner "pays" for anything, they just raise prices. Our point in the video is that inflation has adjusted to account for these fees. So, store owners who "charge" a fee for using cards are double dipping. Their prices are inflated 35 cents by default, and then they charge me extra.
I own Exxon/Mobile stock and reinvest the dividends so the extra fees don't bother me when I'm getting around $17k a year. Got to think outside of the box.
I have two primary cards: AccountNow and Mango. Each has its pros and cons versus the other. The only other debit card (stand alone) that I've had is Netspend (rarely used). Note: If your card doesn't have Direct Deposit as a free feature don't bother with it. Don't go to ATMs. Go to Walmart for small amount of cash ($100 or less) and you won't be charged outlandish ATM fees. AccountNow is one of the more established companies so they're not a fly by night company. I've been with this since 2006 but didn't use the card until I got my Income Tax direct deposited on it. and has been active since. I don't have a monthly maintenance fee (guess because I've been with them for over a decade) and a swipe fee of $1 per use. There are plenty of ways to load money on your card with AccountNow such as GreenDot, MoneyGram and Walmart (you can load money at the register with a swipe). You can also go over by a couple of dollars if your account is low and not get charged a fee. Their biggest con is CUSTOMER SERVICE. The people are friendly (bless their hearts) but I have yet to talk to someone from the United States. I can see how this maybe frustrating for some who are trying to make points about the issues with their card but the person you are talking to can't seem to grasp it the way you want them to. Example: i had an issue with someone using a scanner on my card and took my money off my card. I contact them about trying to get a new card after the other one was misplaced and the customer rep could barely understand what I was trying to tell her Mango Money has a savings account attached to their card with an interest rate of 6% if you Direct Deposit at least $500 a month on the card and the balance is under $5000. There is a $3/month fee and a $1/swipe fee. The biggest disadvantage for me with this card is the lack of places to load the card compared to AccountNow If you are looking for a card to regularly use every day I would recommend AccountNow because they have more options as far as reloading. Mango's biggest plus is that 6% saving account attached to it so it would be great for people who receive monthly benefits or a regular paycheck if they can't get a regular checking account. Would also recommend it for students as a starter checking/savings account.
Debit or war with the banks. Those are my options. I am astounded by the impact credit cards have had on prices at the grocery. It really adds up and annoys me. Indirectly people pay and lose money and directly people pay and lose money on credit cards.
Every store is now different. Some card readers don't even give you or the cashier the option to pick credit or debit. Like where i work if the card is debit it will ask for the pin no matter what. If its credit its credit. The 2 dollar minimum purchase is because if its lower than that you and the store get charged by the bank just to process the transaction.
Always have a savings account or Savings in an extra checking account that can last you for at least three months. I keep a separate checking account with a completely separate Bank with money to last me for 6 months and I keep the debit card for the extra checking account in a safe deposit box at said bank.
Why you don't keep the debit card for the extra checking account at home? i thought money can be stolen from home, but a stolen debit card from home, can it be used by the thief?
I don't understand the second part of your question. But the reason I keep it at the bank this because 1.) I already have the safe deposit box. 2.)If my home is broken into and a large amount of small items are taken, I might not immediately realize that the extra card has been stolen.
Great points. My understanding (and I may have missed this if you addressed this), is that store owners pay a fee if you choose credit. If I'm in a locally owned or small business owner store, I choose debit, so the store doesn't pay as much out. Does this make sense?
Grace Villafuerte Yes that's correct, and we should have made that point more clear. In fact, we had the line "or, if you want to support a local shop owner," but it got cut out for some reason. If you want to save a small business a few dollars choose debit; or even better pay cash. Of course, most businesses have already accounted for transaction fees in their pricing.
Conrad Designs Yes and there's actually studies (which I haven't actually seen yet myself) that show you spend more on a credit card over paper cash. There's definitely pros and cons.
I work with card payments. You guys in the US don't seem to use chip cards (EMV) yet. So mostly the cards are magnetic stripe cards. Extremely prone to fraud especially with a signature. You can make a copy in seconds.
Hi, great video.. Basically the same here in Europe. However a creditcard can and will make you spend more then you actually have... Since it is collected at the end of the month. I have seen a few people getting in some deep holes where they were spending lots more then they earned... With debet cards you will not spend more then you have... Or if you have a bank who will grant you to go over your limit.. But that is usually not as much as credit cards... You should spend as much time checking how much money you have as you are spending it. Again thank you for your great videos. They have been an eye opener.. I haven't watched them all.. Yet ;) but one question... What does financially independent mean for you? Will you stop working at that point?
Paul Avesaath Hey Paul, here's a video we made about it: ruclips.net/video/7z-xB0B_KNg/видео.html But basically, financial independence for us means having "the choice" to work or not. We will not be working in the same capacity we are today, but we'll still be making videos, building/fixing things, traveling, volunteering etc. We might earn income from some of those activities.
Sorry, My wife and I went through identity theft with a debit card. Wells Fargo notified us that someone was using our card in Texas. We were not charged for the fraudulent charges. The charges were never in our account. Credit Cards have hurt me financially in the past. I will never have another one. Mike and Lauren, what you stated in not always true. There may be cases where you have a terrible, soulless, bank.
My husband uses a debit card. He was working in California last week came home to SC yesterday and noticed his account was drained when he got declined getting gas. He did some digging and someone stole his card numbers from a restaurant he went to in CA. He still has his card in his wallet. These people somehow used his card numbers at Walmart and got two gift cards from Home Depot. He's completely broke now and has to catch a flight to go back to working. I really hope karma catches up to the assholes who did this. Stealing from the hard workers smh 😠
yah that is pretty f'd up , i sure karma will, they'll get locked up sooner or later, i'm pretty sure the bank will help him, they have a fraud department that helps out, it happened to me too, they gave all my money back
@ Momma Bear--don't worry---whatever goes around, COMES around !!! The assholes will get their comeuppance, sooner or later. !! It's just a shame that theft comes so EASILY, for these creeps , with our modern technology, and all.
Banks usually have fraud protection on their checking accounts. Which you usually need to have open with a bank to get a debit card. I don’t know if the fraud protection is through the bank itself or the debit card issuer which is almost always visa if it is a debit card tied to that bank. I’ve had this happen before with making an online purchase and was able to go to my bank app and specify which charge was not made by me and they returned all the money to my bank account and the bank reissued me a new card.
Hi Guys, correcting me if im wrong but I belive you're making large contributions to your IRA in order to retire earlier. How are you getting past the 5,500 contribution limit. Otherwise love what your doing and keep up the greath work
Freedom Lover Right now we're stockpiling the excess cash for an investment property. But, before this year we just put contributions over the limit into taxable accounts.
I would never have a debit card, especially traveling out of town. If your debit card is lost or stolen, a crook can easily go into a spending spree with your money, good luck getting some of it back. With a credit card you can dispute any charges, especially since you didn't sign anything for that charge.
Great video guys! This is an especially important topic with the mandatory industry shift to the chip card technology in Fall 2015. Terminals using chip card technology will actually require a pin to complete your purchase. In fact, I predict that by Christmas singing for our transactions will be a thing of the past.
Blake Uhler Yes, I'm very excited for the chip and pin technology. It was the standard on our trip to Europe over 2 years ago! I wouldn't be so sure about Christmas though. Terminals are only required to "accept" in October. It's not requiring everyone to switch immediately.
Christmas may be extreme 😁 Keep in mind though, banks and Credit card companies have the same requirements to make the switch by October. Most major credit cards have already finished sending chip cards to their customer base. I work for a large regional bank. Our entire customer base, stretching 16 states, will have chip card debit cards and Credit cards in their hand by July. This transition actually represents a huge switch in liability in the case of fraud from the bank to the local merchants. Anyway! Big fan of your channel! Maybe in future video you could cover Apple Pay and Google Wallet. I expect to see alot more of that in future.
I don't understand the signature/pin dilemma. There is no dilemma - its pin of course. There are pin terminals everywhere and I don't even think most places would accept a signature instead. They would sure look at you as if you were a lunatic if you asked to sign something.
Heather Thornton I wouldn't use your PIN unless you're trying to save the store owner money, or getting a discount for using your debit card. You're not getting the same fraud protection and you're exposing yourself to the possibility of someone seeing you enter your PIN. From Visa's website: "...if you PIN for your Visa Debit card transactions, you may not receive the same security protections for Visa Debit card transactions not processed by Visa."
Great video. I saw a post about you guys on /r/financial independence. My question about this video is, what credit cards do you two carry in your purse/wallet?
Todd Jennings Davis We have a capital one quicksilver card. We got it before we left for Europe because they have no foreign transaction fees and a cash back rewards system.
Your.....not.....modeling.....behaviour....... Which is weird since you guys are dave ramsey fans so I would think you should be familiear with the argument against credit cards.
definitely credit, especially if you're doing a lot of transactions and get a points card. many people say that points are worthless...really? I've made $300+ in points in the last 4-5 years with mediocre spending(under $5,000 a year on the card, some years possibly under $1,000, immediately paid back). imagine if you were putting tens of thousands through this card every year? you could be making yourself possibly thousands of dollars in points every year. "but what if they don't carry your store's gift cards?" simple, get a Square credit card reader to swipe your cards through and send the money where ever you want, bank account, credit cards, whatever. for me, RBC allows me to use my points to directly pay my credit balance with my points.
why not, I'm only borrowing it for around a day or two and making money in the process, it's a lot more profitable than a lot of riskier investments.....
this all sistem is made to encourage people to spend more on things that dont need..do you think a fuking bank is giving you free benefits out of generosity?? if they give you benefits is because they are charging you more...thats why you pay intrest on your creadit card..but hey if you are happy to pay intrest on things that are already overprice..'and think that you are making a smart move and not the bank....go ahead
Correct, and what happens if you lose your job and you have huge debts? People shouldn't buy things they can''t afford, it's simple as that. Credit card should be called "debt card" as that's more realistic name for it.
Juuso. I have a Credit card.. Never been in debt a single time in my life. The Money in my savings has always surpassed what ive used the Credit Card for... Difference is the basic little benefits I get. Difference is that if I need $500 today(which. Yes. I have that particular 500 in my savings) but Ill just use the Credit Card to get the $500, turn around and pay it back that same day or at least a week before the due date. Just because you dont understand the basic uses of a Credit Card and somehow think you are better because you are "only spending what you have" or youre "using your own money".. Well im doing the same shit, Just filtering it through a Credit card to give me a % back and Build credit.......
The debit does we pay for what we pay for ! credit card is they let you have the ltem first? but what if you cant pay ?there is a 13 to 15 percent every month if we cannot pay ! And this is what happen in u s a the people cant pay for what they own !
Mike and Lauren Sorry, just that I'd imagine a thumbnail and title like this will spark the curiosity of people not familiar with your channel. If I were to see this in the "sidebar" thing, I'd totally watch it. Congrats on the sawhorse video btw! YOWZERS, that's a bunch of views!
Mike and Lauren yep I saw it on the side and wanted to know. Nice info and makes me double think. But we will probably keep using a debit card until we are debt-free. we always use the credit option so at least that's something.
The debit people don't like hearing that they can't handle credit cards, and the credit people don't like hearing that they're borrowing money they can't pay back. But that's why we have options. Debit, Credit, Prepaid Debit, Cash, Checks, bartering, pimping out your daughter... whatever.
I dont need a couple of douche bags telling me what I need. Im retired at 59 1/2, have a shitload in an IRA and my house is paid off. No car payment, no credit card debt BECAUSE I DONT HAVE ANY. Debit works fine. I just keep the balance low in my checking. Also , cash is king.
Debit cards are for people that spend more than they make.Credit card is meant for people that spend what they can afford to pay back.Their is no monthly credit card fees if you pay your amount owing in full by the due date.
Debit is pre-paid meaning you must have the money in your account pre-purchase. Credit is post-paid meaning you pay a bill so you don't require the money pre-purchase. Watch the video
Debit card is like cash... only difference it that you carry chipped (and in civilized countries contactless) card instead of paper. Credit card should be called "debt card" because that's what it really is.
Additionally, the moment you type your pin on the POS machine, your pin is saved on the machine in code. A thief can recover your pin, thus committing identity theft, as well as steal your hard earned bones. On the other hand, routing through a credit company will not save any authorization codes (such as a pin).
Credit cards are for people who can't afford things. Debt cards ar for ppl who can afford stuff. Credit card are for fools. Debit Cards are for smart people.
madant22 Do whatever works for you. Credit cards are for responsible people. I don't stay in one zip code all the time.I do things in my life. Go places. I've always used my credit card like a debit card before debit cards even existed. Don't even wait until the end of the month and prepay everything. Never had a debt on my cards.....no fees,interest,etc.. I make $160k/yr. and currently living on $1500 a month in Tulsa. Completely debt free and millionaire by 30. 401k millionaire by 44. Already maxed out my 401k and Roth IRA for 2018. Retiring at 50.
Debit Cards are for responsible people cause you spend what you have and owe nobody and save more money. Credit Cards are for irresponsible people who don't have so they borrow other peoples money to keep up with the jones. Spending money you don't have. it allows you to live a life you don't belong in. a life you wish you live not a life your actually living. Credit Cards are the biggest Scams America has to put you in debt.
madant22 I know too many people with negative debit card balances spending money they don’t have. When people are irresponsible a debit card won't magically help them. Overdraft fees are over $34 each time you make a purchase while overdrawn( could be higher now) ....as bad as bouncing a check. Each year over 50 million Americans overdraw from checking with debit cards and pay over 25 billion in fees. It's very prevalent in the U.S. So if you think credit cards are a scam what about debit cards? ..the best debit cards go through the Visa/MasterCard system to work.You now this right? You do know they(and myself) make money off of you? Already said debit card holders pay more than 25 billion in fees because it’s no different than credit card to undisciplined card holders. And this is why I own shares of Visa/MasterCard and use my credit card like a debt card......or super debit card. I didn't become a millionaire by being stupid. Anyway I own several thousand shares of Visa and MasterCard getting over $600 a month dividends and over $400k profit tax free in my Roth because of the irresponsible people and credit/debit cards. And my Amex points pay my Netflix and Audible subscriptions each month. So what’s in your wallet?
you won't have negative debit balances if you have overdraft protection and tell them you don't want too borrow credit if you don't have enough in your account. Its better to have your card declined for insufficient funds than getting a negative balance and get an overdraft fee making you pay more. I rather not be able to purchase than owe ppl by borrowing.
madant22 Overdraft protection just allow the transaction to go through then you are hit with at least $30 per transaction for as long as you are in negative range. I think if you don't have overdraft protection you get some kind of alert and have the option to go to negative and get hit with fees per transaction or decline the purchase. But with over 25 billion in fees from overdrawing their debit cards in the U.S. tells me not much difference than having a credit card with these people. I have two credit cards and keep a cash balance of around $500 in my accounts. The card I use weekly for gas and groceries I auto pay $150 a week into the account. I never had a negative balance or debt and I've been using my credit cards for over 30 years since 12th grade. It all boils down to being financially responsible regardless of what type of card you use.
when i use debit card..i dont get charge any extra money...if i buy a cappuccino for 5 dollar..i get charge with 5 dollar..end of the story
with credit card..is easier to dont keep track of how much you spend and at the end of the month they charge you intreste on your bill
why should i take a loan from a bank if i already have money lol?
Alessandro Camporota you only get charged interest if you're late on your payment
What banks do that? You generally don't PAY interest if you pay the Total Amount Due on or before your due date every time. Basically, you can take some effort to spend only as much as the money you have in your bank (the good-as-cash money you have right now) using your credit card and reap the rewards of the CC without paying anything extra. Why is that so hard to understand?
Alessandro Camporota
You don't make any sense at all.
I take a loan from the bank to pay for my coffee because the bank will pay me for using their money. It's money you're going to spend anyway, why not get pay to use it.
They were saying that companies raise prices for these services not that you get an actual psuedo "tax"
Debit For Life!!!
Debit Gang lol
What bank paid for that commercial??? WOW what a load of crap that was!!
Can we go back to debit cards requiring your pin? That could actually be checked and actually be secure!
I use cash.......its all psychological you can swipe swipe swipe but if you have a 20$ bill in your hand your less apt to spend it......that's why casinos gamble with clay chips it's easy to throw out a clay chip or swipe a plastic card cause you don't see the monetary value.....with cash I have no over drawn no fees and no penalty for using cash.....be smart.....
+goffdroid
I could see how that might be the case for someone who is immature and irresponsible. However, I don't buy anything extra simply because I use a credit card. If anything, I've SAVED money through rewards and cash back programs, never paying a single dime of interest. Since I've built my credit through intelligent use of credit cards, I get premier interest rates on mortgages or car loans if I so desire. I even qualify for cheaper insurance premiums!.....be smart.....
Andrew Curley
then why did you take so much offense? you resorted to accusations and denial. all he did was state an opinion...
+Adam A
So, you didn't find that last bit of his comment, "be smart...," to be snarky and condescending to people who choose to strategically utilize credit and leverage their buying power to their advantage?
Prince Popcorn cash completely gone nobody can get your money back
Andrew Curley Credit is for fools who only want to put themselves into more debt, and the added stresses of headaches. Same goes for idiots who is mortgages. Why would you not want to buy something outright.
Thank you, i always wondered which i should use/say with my card.
I hate the gas stations that charge like 35 cents extra for using a debit/credit card. It really pisses me off because that's like paying 2-5 cents extra per gallon (depending how much gas you buy). Now I know why reasoning for the charge, but I will still never pay just to use my debit card. That's like paying to spend your own money. Wtf.
***** I've never seen that before. They charge you a flat fee of 35 cents no matter how much gas you get? That's stupid!
***** I see your point, but I guess we've kind of accepted (as a society) that accepting cards is a convenience store owners pay for because it increases business. Of course no owner "pays" for anything, they just raise prices. Our point in the video is that inflation has adjusted to account for these fees. So, store owners who "charge" a fee for using cards are double dipping. Their prices are inflated 35 cents by default, and then they charge me extra.
I own Exxon/Mobile stock and reinvest the dividends so the extra fees don't bother me when I'm getting around $17k a year.
Got to think outside of the box.
360WaveProcess I've never heard of that. I've never had that at all
I think americans shouldn't be allowed to moan about gas prices.
I have two primary cards: AccountNow and Mango. Each has its pros and cons versus the other. The only other debit card (stand alone) that I've had is Netspend (rarely used).
Note: If your card doesn't have Direct Deposit as a free feature don't bother with it. Don't go to ATMs. Go to Walmart for small amount of cash ($100 or less) and you won't be charged outlandish ATM fees.
AccountNow is one of the more established companies so they're not a fly by night company. I've been with this since 2006 but didn't use the card until I got my Income Tax direct deposited on it. and has been active since. I don't have a monthly maintenance fee (guess because I've been with them for over a decade) and a swipe fee of $1 per use. There are plenty of ways to load money on your card with AccountNow such as GreenDot, MoneyGram and Walmart (you can load money at the register with a swipe). You can also go over by a couple of dollars if your account is low and not get charged a fee. Their biggest con is CUSTOMER SERVICE. The people are friendly (bless their hearts) but I have yet to talk to someone from the United States. I can see how this maybe frustrating for some who are trying to make points about the issues with their card but the person you are talking to can't seem to grasp it the way you want them to. Example: i had an issue with someone using a scanner on my card and took my money off my card. I contact them about trying to get a new card after the other one was misplaced and the customer rep could barely understand what I was trying to tell her
Mango Money has a savings account attached to their card with an interest rate of 6% if you Direct Deposit at least $500 a month on the card and the balance is under $5000. There is a $3/month fee and a $1/swipe fee. The biggest disadvantage for me with this card is the lack of places to load the card compared to AccountNow
If you are looking for a card to regularly use every day I would recommend AccountNow because they have more options as far as reloading.
Mango's biggest plus is that 6% saving account attached to it so it would be great for people who receive monthly benefits or a regular paycheck if they can't get a regular checking account. Would also recommend it for students as a starter checking/savings account.
Debit or war with the banks. Those are my options. I am astounded by the impact credit cards have had on prices at the grocery. It really adds up and annoys me. Indirectly people pay and lose money and directly people pay and lose money on credit cards.
We have had chip n pin for ages here in SA. But the only scary thing now is that you can tap your card and it approves the transaction without the pin
It seems to be quite a bit different in Australia. We can't sign even for credit these days. It is pins or any kind of card, debit or credit.
My Minimalist Baby Supposedly that's on the way here in the US. Machines have to start accepting in October.
Every store is now different. Some card readers don't even give you or the cashier the option to pick credit or debit. Like where i work if the card is debit it will ask for the pin no matter what. If its credit its credit. The 2 dollar minimum purchase is because if its lower than that you and the store get charged by the bank just to process the transaction.
Always have a savings account or Savings in an extra checking account that can last you for at least three months. I keep a separate checking account with a completely separate Bank with money to last me for 6 months and I keep the debit card for the extra checking account in a safe deposit box at said bank.
Why you don't keep the debit card for the extra checking account at home? i thought money can be stolen from home, but a stolen debit card from home, can it be used by the thief?
I don't understand the second part of your question. But the reason I keep it at the bank this because 1.) I already have the safe deposit box.
2.)If my home is broken into and a large amount of small items are taken, I might not immediately realize that the extra card has been stolen.
Y’all are so funny at the intro
Great points. My understanding (and I may have missed this if you addressed this), is that store owners pay a fee if you choose credit. If I'm in a locally owned or small business owner store, I choose debit, so the store doesn't pay as much out. Does this make sense?
Grace Villafuerte Yes that's correct, and we should have made that point more clear. In fact, we had the line "or, if you want to support a local shop owner," but it got cut out for some reason.
If you want to save a small business a few dollars choose debit; or even better pay cash. Of course, most businesses have already accounted for transaction fees in their pricing.
Mike and Lauren So paying cash is almost like a tip at this point?
basacis If it's a local "mom and pop" kind of shop. The big corporations would never notice the difference.
I've always used credit for that reason but it sure makes it harder to not spend what you don't have. Great history lesson, thanks for sharing!
Conrad Designs Yes and there's actually studies (which I haven't actually seen yet myself) that show you spend more on a credit card over paper cash. There's definitely pros and cons.
I have both debit and credit cards . both are very useful to me especially when I travel abroad :)
💯
Can I put my hard worked money on a credit card??? Or is it only with a debit card?
I work with card payments. You guys in the US don't seem to use chip cards (EMV) yet. So mostly the cards are magnetic stripe cards. Extremely prone to fraud especially with a signature. You can make a copy in seconds.
Kevin Rodrigues Yup that's true. Although merchants are required to start accepting chip and pin in October.
Mike and Lauren No, only chip and signature. The PIN option got postponed.
Interesting, I hadn't heard that. Good to know.
We finally have chips lol
I miss Mike and Lauren Live!!! You guys had something really good going there. A high quality personal finance video podcast isn't really out there.
Alex Shiff They're not gone forever. We just got burned out doing them every week. I was actually planning a topic for one the other day.
Hi, great video.. Basically the same here in Europe. However a creditcard can and will make you spend more then you actually have... Since it is collected at the end of the month. I have seen a few people getting in some deep holes where they were spending lots more then they earned... With debet cards you will not spend more then you have... Or if you have a bank who will grant you to go over your limit.. But that is usually not as much as credit cards... You should spend as much time checking how much money you have as you are spending it.
Again thank you for your great videos. They have been an eye opener.. I haven't watched them all.. Yet ;) but one question... What does financially independent mean for you? Will you stop working at that point?
Paul Avesaath Hey Paul, here's a video we made about it:
ruclips.net/video/7z-xB0B_KNg/видео.html
But basically, financial independence for us means having "the choice" to work or not. We will not be working in the same capacity we are today, but we'll still be making videos, building/fixing things, traveling, volunteering etc. We might earn income from some of those activities.
Sorry,
My wife and I went through identity theft with a debit card. Wells Fargo notified us that someone was using our card in Texas. We were not charged for the fraudulent charges. The charges were never in our account. Credit Cards have hurt me financially in the past. I will never have another one. Mike and Lauren, what you stated in not always true. There may be cases where you have a terrible, soulless, bank.
Debit cards are insured to a point, always keep a reasonable limit on them
I use contactless android pay with my phone, it uses a virtual card and takes the money from my debit, it actually hides my card info.
She BLOWS literally
My husband uses a debit card. He was working in California last week came home to SC yesterday and noticed his account was drained when he got declined getting gas. He did some digging and someone stole his card numbers from a restaurant he went to in CA. He still has his card in his wallet. These people somehow used his card numbers at Walmart and got two gift cards from Home Depot. He's completely broke now and has to catch a flight to go back to working. I really hope karma catches up to the assholes who did this. Stealing from the hard workers smh 😠
yah that is pretty f'd up , i sure karma will, they'll get locked up sooner or later, i'm pretty sure the bank will help him, they have a fraud department that helps out, it happened to me too, they gave all my money back
@ Momma Bear--don't worry---whatever goes around, COMES around !!! The assholes will get their comeuppance, sooner or later. !! It's just a shame that theft comes so EASILY, for these creeps , with our modern technology, and all.
Banks usually have fraud protection on their checking accounts. Which you usually need to have open with a bank to get a debit card. I don’t know if the fraud protection is through the bank itself or the debit card issuer which is almost always visa if it is a debit card tied to that bank. I’ve had this happen before with making an online purchase and was able to go to my bank app and specify which charge was not made by me and they returned all the money to my bank account and the bank reissued me a new card.
What is credit card limit?
Hi Guys, correcting me if im wrong but I belive you're making large contributions to your IRA in order to retire earlier. How are you getting past the 5,500 contribution limit.
Otherwise love what your doing and keep up the greath work
Freedom Lover Right now we're stockpiling the excess cash for an investment property. But, before this year we just put contributions over the limit into taxable accounts.
I would never have a debit card, especially traveling out of town. If your debit card is lost or stolen, a crook can easily go into a spending spree with your money, good luck getting some of it back. With a credit card you can dispute any charges, especially since you didn't sign anything for that charge.
Great video guys! This is an especially important topic with the mandatory industry shift to the chip card technology in Fall 2015. Terminals using chip card technology will actually require a pin to complete your purchase. In fact, I predict that by Christmas singing for our transactions will be a thing of the past.
Blake Uhler Yes, I'm very excited for the chip and pin technology. It was the standard on our trip to Europe over 2 years ago! I wouldn't be so sure about Christmas though. Terminals are only required to "accept" in October. It's not requiring everyone to switch immediately.
Christmas may be extreme 😁 Keep in mind though, banks and Credit card companies have the same requirements to make the switch by October. Most major credit cards have already finished sending chip cards to their customer base. I work for a large regional bank. Our entire customer base, stretching 16 states, will have chip card debit cards and Credit cards in their hand by July. This transition actually represents a huge switch in liability in the case of fraud from the bank to the local merchants. Anyway! Big fan of your channel! Maybe in future video you could cover Apple Pay and Google Wallet. I expect to see alot more of that in future.
Overall I will take Debit card with a visa logo over any credit card. But it is 2018 now so 3 years have gone by.
I don't understand the signature/pin dilemma. There is no dilemma - its pin of course. There are pin terminals everywhere and I don't even think most places would accept a signature instead. They would sure look at you as if you were a lunatic if you asked to sign something.
misium I'm guessing you're not from the US? We don't have chip and pin here, it's all signature...
Wow! That is crazy. Is there any difference when using debit card with a pin? I always enter my pin.
Heather Thornton I wouldn't use your PIN unless you're trying to save the store owner money, or getting a discount for using your debit card. You're not getting the same fraud protection and you're exposing yourself to the possibility of someone seeing you enter your PIN.
From Visa's website: "...if you PIN for your Visa Debit card transactions, you may not receive the same security protections for Visa Debit card transactions not processed by Visa."
Mike and Lauren yea that's why I hate shopping at Costco... but the savings are great! yet.. you must enter a PIN.
Everybody in uk use debit card because that is what your wage goes into and you only ever use credit card if you had to. There are not big in the uk.
they forget the little matter of the interest you have pay back to borrow the money with debit card you ownly pay for the product
Bruce Nadeau
Over 15 billion in debit card overdraft fees last year.
BlackWorldTraveler only spend the money you have
Pay your balance each week on credit card.....no interest.
Great video. I saw a post about you guys on /r/financial independence. My question about this video is, what credit cards do you two carry in your purse/wallet?
Todd Jennings Davis We have a capital one quicksilver card. We got it before we left for Europe because they have no foreign transaction fees and a cash back rewards system.
Cash in one hand and a hand cannon in the other hand is even better? Ha ha.....
Your.....not.....modeling.....behaviour.......
Which is weird since you guys are dave ramsey fans so I would think you should be familiear with the argument against credit cards.
Surprised seeing public bank
I've come to the same conclusion. I'd much rather risk a lender's bank account over my own while making purchases.
definitely credit, especially if you're doing a lot of transactions and get a points card. many people say that points are worthless...really? I've made $300+ in points in the last 4-5 years with mediocre spending(under $5,000 a year on the card, some years possibly under $1,000, immediately paid back). imagine if you were putting tens of thousands through this card every year? you could be making yourself possibly thousands of dollars in points every year. "but what if they don't carry your store's gift cards?" simple, get a Square credit card reader to swipe your cards through and send the money where ever you want, bank account, credit cards, whatever. for me, RBC allows me to use my points to directly pay my credit balance with my points.
SirLobsterman you made 300£ in 5 years
and you think that is a good reason to borrow money ???
SirLobsterman you made 300£ in 5 years
and you think that is a good reason to borrow money ???
why not, I'm only borrowing it for around a day or two and making money in the process, it's a lot more profitable than a lot of riskier investments.....
this all sistem is made to encourage people to spend more on things that dont need..do you think a fuking bank is giving you free benefits out of generosity?? if they give you benefits is because they are charging you more...thats why you pay intrest on your creadit card..but hey if you are happy to pay intrest on things that are already overprice..'and think that you are making a smart move and not the bank....go ahead
Sales man at work
Hands down debit cards are better, cuz your paying with your own $. It's like buying a car in cash.
Correct, and what happens if you lose your job and you have huge debts? People shouldn't buy things they can''t afford, it's simple as that.
Credit card should be called "debt card" as that's more realistic name for it.
Juuso. I have a Credit card.. Never been in debt a single time in my life. The Money in my savings has always surpassed what ive used the Credit Card for... Difference is the basic little benefits I get. Difference is that if I need $500 today(which. Yes. I have that particular 500 in my savings) but Ill just use the Credit Card to get the $500, turn around and pay it back that same day or at least a week before the due date. Just because you dont understand the basic uses of a Credit Card and somehow think you are better because you are "only spending what you have" or youre "using your own money".. Well im doing the same shit, Just filtering it through a Credit card to give me a % back and Build credit.......
The debit does we pay for what we pay for ! credit card is they let you have the ltem first? but what if you cant pay ?there is a 13 to 15 percent every month if we cannot pay ! And this is what happen in u s a the people cant pay for what they own !
Dedit card i can get discount and cashback if we use it and this is happan now a day when i doing shopping and eat outlet
I'm 13 and just ordered my first debit card
I'm 10 I just got my first debit card. I live in Czech Republic you can get debit cards from 8 years old.
How
14.
click bite
what a waste of time
M&L, I'm speculating that this video (and title) will bring y'all some new audience members. What you think?
Kevin R. What do you mean?
Mike and Lauren Sorry, just that I'd imagine a thumbnail and title like this will spark the curiosity of people not familiar with your channel. If I were to see this in the "sidebar" thing, I'd totally watch it.
Congrats on the sawhorse video btw! YOWZERS, that's a bunch of views!
No need to apologize haha. I thought that's what you meant, but you specified "title" not thumbnail, so I thought I was being dumb.
Mike and Lauren yep I saw it on the side and wanted to know. Nice info and makes me double think. But we will probably keep using a debit card until we are debt-free. we always use the credit option so at least that's something.
U can max a credit card but if u put thy límites to thy debt card you'll never ow money
This is all together one of the worst.
I suffered from a debit card fraud, I got my money back after only a week.... It's not even an inconvenience xD
Same most debit cards now come with that same fraud protection that credit cards come with now days.
The debit people don't like hearing that they can't handle credit cards, and the credit people don't like hearing that they're borrowing money they can't pay back. But that's why we have options.
Debit, Credit, Prepaid Debit, Cash, Checks, bartering, pimping out your daughter... whatever.
Pimping out your daughter 😂😂😂😂
I dont need a couple of douche bags telling me what I need. Im retired at 59 1/2, have a shitload in an IRA and my house is paid off. No car payment, no credit card debt BECAUSE I DONT HAVE ANY. Debit works fine. I just keep the balance low in my checking. Also , cash is king.
Debit cards are for people that spend more than they make.Credit card is meant for people that spend what they can afford to pay back.Their is no monthly credit card fees if you pay your amount owing in full by the due date.
How so troll?
Debit is pre-paid meaning you must have the money in your account pre-purchase. Credit is post-paid meaning you pay a bill so you don't require the money pre-purchase. Watch the video
Debit card is like cash... only difference it that you carry chipped (and in civilized countries contactless) card instead of paper. Credit card should be called "debt card" because that's what it really is.
How could you spend more than you make on a debit card? Where is the extra money coming from?
Your account can go below zero. I'm student and that happen to me every month
wtf is a credit and debit card
Yupp, love our credit cards for those reasons.
Additionally, the moment you type your pin on the POS machine, your pin is saved on the machine in code. A thief can recover your pin, thus committing identity theft, as well as steal your hard earned bones. On the other hand, routing through a credit company will not save any authorization codes (such as a pin).
Pagani
I love Pink Floyd
Credit cards are for people who can't afford things. Debt cards ar for ppl who can afford stuff. Credit card are for fools. Debit Cards are for smart people.
madant22
Do whatever works for you.
Credit cards are for responsible people.
I don't stay in one zip code all the time.I do things in my life. Go places.
I've always used my credit card like a debit card before debit cards even existed.
Don't even wait until the end of the month and prepay everything.
Never had a debt on my cards.....no fees,interest,etc..
I make $160k/yr. and currently living on $1500 a month in Tulsa. Completely debt free and millionaire by 30.
401k millionaire by 44.
Already maxed out my 401k and Roth IRA for 2018.
Retiring at 50.
Debit Cards are for responsible people cause you spend what you have and owe nobody and save more money. Credit Cards are for irresponsible people who don't have so they borrow other peoples money to keep up with the jones. Spending money you don't have. it allows you to live a life you don't belong in. a life you wish you live not a life your actually living. Credit Cards are the biggest Scams America has to put you in debt.
madant22
I know too many people with negative debit card balances spending money they don’t have.
When people are irresponsible a debit card won't magically help them.
Overdraft fees are over $34 each time you make a purchase while overdrawn( could be higher now) ....as bad as bouncing a check.
Each year over 50 million Americans overdraw from checking with debit cards and pay over 25 billion in fees.
It's very prevalent in the U.S.
So if you think credit cards are a scam what about debit cards? ..the best debit cards go through the Visa/MasterCard system to work.You now this right?
You do know they(and myself) make money off of you?
Already said debit card holders pay more than 25 billion in fees because it’s no different than credit card to undisciplined card holders.
And this is why I own shares of Visa/MasterCard and use my credit card like a debt card......or super debit card.
I didn't become a millionaire by being stupid.
Anyway I own several thousand shares of Visa and MasterCard getting over $600 a month dividends and over $400k profit tax free in my Roth because of the irresponsible people and credit/debit cards.
And my Amex points pay my Netflix and Audible subscriptions each month.
So what’s in your wallet?
you won't have negative debit balances if you have overdraft protection and tell them you don't want too borrow credit if you don't have enough in your account. Its better to have your card declined for insufficient funds than getting a negative balance and get an overdraft fee making you pay more. I rather not be able to purchase than owe ppl by borrowing.
madant22
Overdraft protection just allow the transaction to go through then you are hit with at least $30 per transaction for as long as you are in negative range.
I think if you don't have overdraft protection you get some kind of alert and have the option to go to negative and get hit with fees per transaction or decline the purchase.
But with over 25 billion in fees from overdrawing their debit cards in the U.S. tells me not much difference than having a credit card with these people.
I have two credit cards and keep a cash balance of around $500 in my accounts.
The card I use weekly for gas and groceries I auto pay $150 a week into the account.
I never had a negative balance or debt and I've been using my credit cards for over 30 years since 12th grade.
It all boils down to being financially responsible regardless of what type of card you use.
Either ways,Satan wins. Right?!
The way she look at him it just weird 😹
Way to many times
She likes him
The way you look at her is just weird!
debit cards are for kids, credit cards are for adults
Debit card is for responsible people while credit card is for those who think that debt is a good thing.
Cash is for kids......Kids can't use debit cards unless of course the card is stolen. Debit cards have a min. age of 16.......
And cash is for the scholars
Nice-oscar i will think twice about that
lol
You guys are like the same uglieness, your perfect for each other, but ya'll know how to pay them bills though.
You need glasses and they look a hell of a lot better then YOU! YOU are the ugly one and probably cant manage your money! Keep that in mind!!!!!!
Chill out Jon.
What a weird fucking comment.