Dave Ramsey on Debit Cards

December 16th, 2008

The “get out of debt” financial guru Dave Ramsey has lots of good to say about using debit cards instead of credit cards. Here are a few of his comments:

Debit cards are being used at an all-time high today and are used more often than credit cards. Last year debit card use exceeded a trillion dollars. Whew! That’s a lot of people using debit cards! 

Debit cards force you to pay with money you already have. If you hold a debit card from a well-known name like Visa or MasterCard, it will have the same policy about unauthorized charges that credit cards have.

Since a debit card is directly linked to your bank account, it’s a convenient way to purchase things without incurring debt. When you use a debit card, the money is immediately withdrawn from your account, which means no interest, late fees, over-the-limit fees, or annual fees - all good things to help you avoid debt.

Using a debit card to make your purchases is just as convenient as a credit card — and you won’t be going into debt!

Debit Card