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To Debit or Not To Debit – The New Consumer Debate

On Behalf of | Jan 3, 2011 | Consumer Protection

Debit cards have become the new normal. But did you know that debit cards are your least-friendly piece of plastic in your wallet?  The costs of using debit cards are rising.  Bank of America now charges a $5 monthly fee for making debit-card purchases. Chase, PNC and TD Bank charges $5 for each ATM usage. Banks that had offered debit reward programs have begun to cancel them.

In addition to the costs, debit cards do not offer the same fraud and theft protections as credit cards. If your debit card is stolen, you risk losing everything in your bank account unless you can report it before the purchases are made.

What are your options?

(1) You can switch banks or move your account to credit union that does not charge debit usage fees.

(2) Use a credit card and pay down the balance each month.

(3) Purchase a prepaid debit car , but watch out because they have fees, too.

(4) There is always old fashioned cash. There is no fine print when you pay in cash.

Review your bank statements and credit card bills.  Review your options and see what fits best in your situation.  To read more, click here.

If you feel that your credit is at risk or you are purchasing a car or house, pull your credit reports.  See our webite for details.  Our firm can help you dispute errors or answer credit reporting questions.