Bank of America Plans $5/month Fee for Using Debit Cards .

• queencitybuckeye

  dlazz;917342 wrote:Credit cards build interest because they tie up "future" funds.
  

  Not sure what you're saying here. If you use a credit card and pay it off monthly, you're effectively borrowing money interest-free.
• dlazz

  queencitybuckeye;917351 wrote:Not sure what you're saying here. If you use a credit card and pay it off monthly, you're effectively borrowing money interest-free.

  This is true, but most people (including myself) carry a balance from month to month. If you use a debit card for everything it's more challenging to bury yourself in debt.
• LJ

  

  I just like cash accounting myself.
• gut

  dlazz;917342 wrote:Credit cards build interest because they tie up "future" funds.
  
  Debit cards do not carry interest, and they do not tie up future funds. They also allow you the convenience of using "real" money, when you have no cash on hand.

  Credit cards build interest only if you don't pay it off every month. And if you are spending more than you have, then learn some fiscal discipline (or get a credit card with a much lower balance). I don't see how using a debit card imposes more fiscal restraint, unless you empty your bank account about every month in which case you have bigger problems.
• dlazz

  Oh, also worth noting on debit cards, you can do cash back during a transaction and make the merchant an ATM.
• Glory Days

  

  dlazz;917374 wrote:Oh, also worth noting on debit cards, you can do cash back during a transaction and make the merchant an ATM.

  thought you could do this with credit cards too?
• gut

  dlazz;917374 wrote:Oh, also worth noting on debit cards, you can do cash back during a transaction and make the merchant an ATM.

  Which should warrant a fee, just like going to a non-network ATM. And the merchant should charge you, too. My business is not a bank.
• LJ

  

  Glory Days;917380 wrote:thought you could do this with credit cards too?

  I've only ever seen it when you use a debit card and key in a pin
• dlazz

  Glory Days;917380 wrote:thought you could do this with credit cards too?

  You can sometimes, but typically the creditor charges an insane interest rate on the cash withdrawn and the cash has to be paid back before you can pay on your balance.
  
  I think my credit card company wanted 20-30% interest on cash withdrawals.
• thavoice

  Yeah. you do NOT wanna take cash from your CC. The interest rate on it is outrageous and typically is only done in a very last ditch effort by people.
• gut

  thavoice;917441 wrote:Yeah. you do NOT wanna take cash from your CC. The interest rate on it is outrageous and typically is only done in a very last ditch effort by people.

  You can avoid the interest if you pay it back promptly, but they still klll you on the convenience fee (anywhere from $5-$30, might be a 3-5% charge).
• thavoice

  gut;917449 wrote:You can avoid the interest if you pay it back promptly, but they still klll you on the convenience fee (anywhere from $5-$30, might be a 3-5% charge).

  Its been years since I did it or even looked into it but you may be right. The last I remember seeing though on my credit card that purchases are interest free for 30 days but cash advances werent.
• WebFire

  So wait. Now fiscally responsible people use credit cards?
• IggyPride00

  

  Swipe fees were getting out of control as banks were charging like 45-50 cents each for something that was only costing them 10 cents.
  
  It was a major drag on mom & pop retailers, so reigning them in was not a bad thing.
  
  If this is the fallout from regulating against banks raping and pillaging the small businesses of the world, then so be it.
  
  Ultimately the small banks who don't have the tremendous overhead the TBTF banks do as far as executive compensation levels will prosper because they won't have to be so draconian with fee raising to make up for their inability to continue legalized extortion like we saw with the old swipe fees.
• queencitybuckeye

  WebFire;917471 wrote:So wait. Now fiscally responsible people use credit cards?

  Of course, and the worst of the fiscally irresponsible do as well. It's a tool. Used properly, it helps makes something easier. Improperly, you can hurt yourself badly.
• QuakerOats

  dlazz;917342 wrote:No you weren't, you were looking to start a political rant. "Change" this, "liberal" that...shut the **** up.

  
  No, I was looking to get under your skin. Mission accomplished.
• dlazz

  QuakerOats;917508 wrote:No, I was looking to get under your skin. Mission accomplished.

  Wrong. If you took the time to notice, I trolled you.
• QuakerOats

  dlazz;917510 wrote:Wrong. If you took the time to notice, I trolled you.

  
  I could care less; I don't tell you what to do, and you sure as hell aren't going to tell me what, where, and when to post.
• jmog

  If Chase does this I will move instantly. Matter of fact I will be calling them to let them know that I will be moving if they do this.
• DeadliestWarrior34

  

  
• tk421

  

  Luckily US Bank is doing pretty good, over 1 Billion in net income last quarter. They shouldn't have any reason to implement these new fees.
• Glory Days

  

  WebFire;917471 wrote:So wait. Now fiscally responsible people use credit cards?

  fiscally responsible people can technically use whatever methods they want.....since they are "fiscally responsible".
• majorspark

  

  queencitybuckeye;917499 wrote:Of course, and the worst of the fiscally irresponsible do as well. It's a tool. Used properly, it helps makes something easier. Improperly, you can hurt yourself badly.

  True. But I would also bad that when used badly it does not always hurt just yourself. Usually other bills can't be paid either along with the cards. If the result is bankruptcy the creditors take a loss and pass it on to their good paying customers.
• WebFire

  Glory Days;917678 wrote:fiscally responsible people can technically use whatever methods they want.....since they are "fiscally responsible".

  Yeah, it was meant to have some sarcasm. Usually credit card use is associated with bad money habits.
• Glory Days

  

  WebFire;917705 wrote:Yeah, it was meant to have some sarcasm. Usually credit card use is associated with bad money habits.

  damnit, internet defeats me again!