Why I Don't Use Debit Cards (The Truth)

Here's an explanation of why I don't use Debit Cards anymore. We also talk about the difference between Credit and Debit cards, and who each card is good for.

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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

⏱️ Timestamps:
0:00 - Start Here
0:53 - The Controversy
2:11 - Debit Card Benefits
4:03 - Credit Card Benefits
9:03 - Credit Card Dangers
10:22 - My Opinion

[humphrey]

What do you guys use? Let me know in the comments...

[KennedyVerbruggen]

I've paid off credit cards and cut a lot of debt. Spending is way down. All the money that used to go to crap, now sits and grows in my it's like a warm hug every time I look at my bank account.

[matwx]

It's simple:
If you're saver, only use credit cards.
If you're a spender, don't even apply for credit cards.

[TopShotst]

Credit card are good if you treat them like debit cards. Pay it off every month and cashflow them every month.

[Courtney-Alice-Gargani]

You can use credit cards as long as you pay it off that month. Advantage is you get reward points and travel points. Disadvantage if you're a compulsive buyer you might max out your cards. I am debt free.

[rig]

I’ve used credit cards for 99% of my purchases since I was 20 or so.

Never paid interest, never out of my means. 810+ credit score.

All the cash back rewards. 😎

[devjames]

I've been hacked 3 times, with the lastest having all my savings drained because I used a debit card at a gas station. Using a credit card, your money is not at risk for fraud.

[JohnSmith-djgf]

I racked up about $18K in credit card debt. First thing I did was stop using credit cards, transferred it to a 0%, and went all cash with a debit card. Down to $2500 and once that’s done will have no consumer debt at all. Will once again have control of my full income to devote to e-fund and investing.

[damienbates]

As a general rule, I agree with David in that most people should avoid credit cards. I’ve used them responsibly for years, however I have made some bad choices in the past by getting services now instead of waiting until I had the money. I’ve also had buyers remorse having used a credit card when I wouldn’t have made the purchase with cash at the time. Also, when I use the debit card I see that balance go down immediately and it causes me to be more conservative with my spending.

[nobodyknows]

I understand your points, but I cannot be trusted with a credit card based on my past history. When things are good, I forget to pay things off; when things are not so good, I spend too much. I am the big dumb.

[AR-lnln]

In my own circle of friends, the ones who get into credit card debt have much more going on in their lives that just overspending. They have health issues, self-esteem issues, employment issues, family that sucks they dry, drinking problems, partying too much, not giving a crap problem, and definitely math and not knowing any better problem.

[antillie]

People often seem to forget that swiping a debit card is just as emotionally painless as swiping a credit card. The whole "credit cards make you spend more" argument applies to debit cards as well. People also seem to forget that if you stick to a budget, the way you pay for stuff doesn't really matter. So you might as well get 2% back on everything.

[Tom-ctdy]

Fund an emergency fund before you get a credit card.

[StreetsAhead]

With debit cards, what worries me is that it's linked to your bank account and if it's stolen, it takes at least 2 weeks to get your money replaced from the bank.

[tracychan]

I don't have debit card. I called the bank to remove the debit function.
I only use credit cards and never keep any balance.

[GavinnMarshall]

One of the Ramsey points is that they believe the points are “scummy” since the reason they offer them is because someone isn’t able to pay their card and pays interest which allows you to get benefits.

[vinhhoang]

All my friends who use credit cards are broke, living paycheck to paycheck and have debt up to their eyeballs. My other friends who use debit cards own homes, have investment nest eggs and are living their best lives. Not sure if correlated to owning a credit card but I’d rather be in the latter camp.

[littleship]

I think the real issue at hand is, people view finance as a one size fits all situation. Whether a credit card is right or a debit card, it’s up to the individual to make the best decision for themselves.

[PrimitiveAK]

Dave Ramsey advice is for financially incompetent folks who are deep in debt. If you know you are financially responsible, then there’s nothing to worry about and a majority of Dave’s advice is pretty god awful.

[wyckedsyndicate]

Something overlooked is the vendor fees, credit card companies make a significant part of their profit off of charging vendors processing fees! Great video Humphrey as always!