Do you reconcile your finances?

[JoelB]

Need to ditch the debit card. Everything we do is through credit cards. At the very minimum, you have stronger protection against fraud.

But there are other benefits, such as cash back, reward points, discount portals, warranties on electronic items, rental car protections, etc...

I don't really believe in credit cards or debt. Just my personal preference. Well's Fargo has protected me more than once at fraud attempts already.

Edit: I do have a mortgage since I'm not wealthy enough to pay cash for a home. So i can't really say no debt completely.

 

[Capt W]

What I had learned recently is that debit cards afford no legal protection against fraud.

Perhaps at your institution. My Navy Federal Credit Union debit card offers full fraud protection...and has done so since I joined in 1998.

 

[RooflessVW]

I don't really believe in credit cards or debt. Just my personal preference. Well's Fargo has protected me more than once at fraud attempts already.

Edit: I do have a mortgage since I'm not wealthy enough to pay cash for a home. So i can't really say no debt completely.

Statements are paid off every month to avoid interest. My wife tends to do it weekly.

It saves us money. Debt is just a tool.

 

[Pablo]

WE Don't write checks, so that giant check book hassle from the days bygone is D-E-D dead.

Debit cards are kind of silly. Don't see the point and definitely see some risk. Yes SOME debit cards have limited protection limits. Yes the days of cleaning out your account are over. But still why use YOUR cash? Use someone else's for 29 days, plus get the points. Handy to get real cash money is the only reason we have them, but most of them are in the safe.

We buy everything with two CREDIT cards. Really easy to see and am notified of all actions, both text and email. There is no debt, just pay the things off each month, earlier if you want. So far this year we are looking at over $1000 in CASH from points. the large stuff is all at Fidelity. Super easy.

We also have HSA cards with $10K+ behind each, also easy to watch.

Point is, very easy to watch in and out now. And strangely no problems. hmmm........

 

[Zee09]

Years ago I noticed many cc actually dumped many free protection offers like on rentals etc.
Most never read the notices. Before you assume you're covered give your cc company a call.

 

[4WD]

WE Don't write checks, so that giant check book hassle from the days bygone is D-E-D dead.

Debit cards are kind of silly. Don't see the point and definitely see some risk. Yes SOME debit cards have limited protection limits. Yes the days of cleaning out your account are over. But still why use YOUR cash? Use someone else's for 29 days, plus get the points. Handy to get real cash money is the only reason we have them, but most of them are in the safe.

We buy everything with two CREDIT cards. Really easy to see and am notified of all actions, both text and email. There is no debt, just pay the things off each month, earlier if you want. So far this year we are looking at over $1000 in CASH from points. the large stuff is all at Fidelity. Super easy.

We also have HSA cards with $10K+ behind each, also easy to watch.

Point is, very easy to watch in and out now. And strangely no problems. hmmm........

Sorry - but my debit card is chip+PIN … and the recent hack attempt was shut down in seconds - text+emails that it was locked by them …
They also blocked that vendor until investigated …

 

[Zee09]

I prefer swimming in debt neck deep....

 

[4WD]

I prefer swimming in debt neck deep....

That’s a crowded pool in the USA

 

[Pablo]

Sorry - but my debit card is chip+PIN … and the recent hack attempt was shut down in seconds - text+emails that it was locked by them …
They also blocked that vendor until investigated …

That's great!

But not really my point. Why draw on your cash so quickly? My cash earns near 5%, plus 2-5% points on my CC purchases makes a debit card seem silly.

 

[4WD]

That's great!

But not really my point. Why draw on your cash so quickly? My cash earns near 5%, plus 2-5% points on my CC purchases makes a debit card seem silly.

bcs it’s double monitored - two banks - know the person to call - she has worked at my bank 30 years - don’t have to talk to some idiot … we move money almost daily keeping most of it earning -
I have been hacked on all of them all including AmEX - and none sort it as fast as my local bank …

Checking is topped up by savings - so we keep checking lean …

 

[Capt W]

Debit cards are kind of silly. Don't see the point and definitely see some risk. Yes SOME debit cards have limited protection limits. Yes the days of cleaning out your account are over. But still why use YOUR cash? Use someone else's for 29 days, plus get the points.

It's called living with a budget and having the discipline to manage finite resources. When people lean on credit cards it's reliance upon imaginary money, with a high propensity for overuse ("but I get points!!").

While you might be the disciplined exception to the rule, the fact of the matter is most people grossly overuse credit cards (much worse since 2020) and the credit card companies are giddy with delight.

 

[goingplacesanddoingstuff]

I’m floored by people using debit cards like credit cards. Seems incredibly risky to me. I love credit cards. They provide fraud protection, purchase protection, and many other benefits. They even pay you to use them.

All you have to do is pay it down to $0 every month. If you can do that, you benefit a lot.

 

[JoelB]

Statements are paid off every month to avoid interest. My wife tends to do it weekly.

It saves us money. Debt is just a tool.

I agree. It's just not a tool I'm interested in using.

Edit: I wanted to expand on this a bit. My brother lives in a much nicer home than me, with a larger mortgage. They have 2 cars that are both more valuable than mine and my wife's, on finance. They have nicer things in their home, and use credit cards. They aren't financially unstable or irresponsible. It's just a different lifestyle than my wife and I have chosen.

More power to them if they are happy with that. As long as you can maintain it live the life you want.

 

[Pablo]

It's called living with a budget and having the discipline to manage finite resources. When people lean on credit cards it's reliance upon imaginary money, with a high propensity for overuse ("but I get points!!").

While you might be the disciplined exception to the rule, the fact of the matter is most people grossly overuse credit cards (much worse since 2020) and the credit card companies are giddy with delight.

I think we maybe forgot to pay the balance once in 2004 on one card. We have a budget. Why would you think otherwise? In fact we are under the "retirement" budget done by two financial planners (OK both were "free" and one was Fidelity)

The cash from points is not imaginary. It goes right into the brokerage account at Fidelity.

Oddly I'm not the most disciplined person, but rates (and other charges) 15-25% just seems so easy to make my sorry ass disciplined , even easier now with everything online.

I never thought deeply about it but I used to think card companies don't like my type...............but really they get their processing fee from sellers. We are just not "bonus" customers they REALLY LOVE.

 

[atikovi]

While you might be the disciplined exception to the rule, the fact of the matter is most people grossly overuse credit cards (much worse since 2020) and the credit card companies are giddy with delight.

If people don't have the willpower to control their spending, that is a completely separate issue which is psychological, not financial. I pay off the bill in full each month and put nearly everything possible on the credit card. Blue Cross, water, electric, gas bills, grocery store, etc. Pretty much anything over a few bucks goes on the card. With the cash back, I'm getting $600-$800 a year to use it. And that's not including the money in the bank still earning interest instead of being removed with a debit card after each purchase.

 

[Capt W]

If people don't have the willpower to control their spending, that is a completely separate issue which is psychological, not financial. I pay off the bill in full each month and put nearly everything possible on the credit card. Blue Cross, water, electric, gas bills, grocery store, etc. Pretty much anything over a few bucks goes on the card. With the cash back, I'm getting $600-$800 a year to use it. And that's not including the money in the bank still earning interest instead of being removed with a debit card after each purchase.

We don't disagree. You are one of the few exceptions to the rule, and your system works well for you. Ditto for Pablo.

The masses just aren't as disciplined as you two...and the statistics overwhelmingly bear this out. Overuse of credit is an epidemic in America, and it extends to car loans, mortgages, and to those who think Uncle Sugar should wipe out their ill-conceived student loans.

Don't get me wrong. I'm glad you maintain strict control over your respective budgets and can use the system to your benefit. Most people, however, do not do this.

Your answers to the OP's query, "Do you reconcile your finances?," are therefore "yes." We are marching in the same direction with alternative ways of getting there.

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[ZZman]

Not really

 

[BAJA_05]

Clearly, not as often as I should. Life is all about numbers -- I have to start being more diligent about finances and checking up to keep things honest amongst all parties.

 

[Hermann]

Until about 6 months ago I would rectify my checking account. But B of A has a nice linear line item format that is easy to read and understand. So I quit doing it. I check my accounts online daily and in 6 months I have found no funny business.

 

[SHOZ]

I use credit cards a lot but for the most part pay them off without interest. 99.9 percent of my spending goes on cards or other accounts. Currently have three 0% cards running out of 13 open accounts. One is the 6 mo same as cash from Lowes for the new mower, another was a 20 month card running out at the end of the year. And just got a new one at 0% for 20 moths I'll start using as the other ones is being paid down.

Plus Paypal credit that I put the car and house insurance on. 6 months same as cash. Menards I use the 6 mo SAC offers if needed.

Haven't paid any interest in years. I close the 0% ones usually after they run out. They always give me another offer before that happens.

So yes I go though every credit card statement. Haven't written a check in years and quit using the debit card.