Neil T / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
The April 2012 issue of ShopSmart, published by Consumer Reports, points out five scenarios that can get consumers in trouble when using their debit card. The story made me realize I’ve become careless. I summarize the dos and don’ts of staying safe when you use a debit card below. How do you keep safe when using your debit card?
We had more than 300 entries for this giveaway! Below you’ll find the name of the lucky person who is taking home the $150 Discover prepaid debit card. Thanks to everyone who participated and don’t forget to check out this week’s giveaway.
We partnered with DebitSavvy.org to bring you this giveaway. DebitSavvy.org is a consumer-focused site designed to provide fast and accurate information about debit cards.
The winner is…
If you need a little more spending cash for the holidays, have we got a giveaway for you! DebitSavvy.org is partnering with us to giveaway a $150 Discover prepaid debit card to one lucky winner. Find out how to be win below.
DebitSavvy.org is a consumer-focused site designed to provide fast and accurate information about debit cards. Want another chance to win a Discover prepaid debit card? DebitSavvy.org will be giving away more than $2,000 in Discover prepaid debit cards in their Twitter Giveaway Trivia Contest through January 9, 2012.
To win the $150 Discover prepaid debit card on BargainBabe.com, make sure to like us on Facebook, follow us on Twitter and join our freebie and deal email by Monday, December 12 at 11:59 p.m. EST. Get additional entries by:
- Sharing this post on Facebook
- Tweeting “Win a $150 Discover prepaid debit card from @DebitSavvy via @BargainBabe http://bit.ly/vQEJ2m”
- Following @DebitSavvy on Twitter
Don’t forget to tell us how you plan to use the money and make sure to leave a comment for each entry so we know how many times you’ve entered!
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Cut your cell phone bill! me and the sysop / Flickr
We share five must read blog posts about saving money every Friday.
Tying the knot? Find out how marriage affects finances. (Money Girl’s Smart Moves to Grow Rich)
Going over your minutes? Donna Freedman show you how to cut your phone and Internet bills. (Surviving and Thriving)
Hoarding ketchup and picking up extra napkins at restaurants — frugal or not? The Silicon Valley Blogger writes about thievery vs. frugality. (The Digerati Life)
Higher bank fees are coming! Avoid debit card fees with these four suggestions. (Wisebread)
Group buying the latest trend? Sites that bundle buyer orders to help them secure a discount previously only available to retailers, are springing up left and right. Is this the latest saving-money trend? (The Guardian)
sj_sanders / Flickr
I share five must read blog posts about saving money every Friday.
The Senate defeated a measure that would delay the reduction of debit card swipe fees. So how much money will banks charge retailers starting next month and how will it affect you? (The Consumerist)
Dentist visits can be costly. Shopping for discounted dental care is a must to save money. (The New York Times)
Target’s new coupon policy clarifies the BOGO free policy and states the retailer is no longer accepting internet coupons for free items with no purchase requirements. Is this going to affect your shopping at Target? (Target)
Still looking for the perfect Father’s Day gift? Here’s how to find Father’s Day freebies. (MainStreet)
Headed on a road trip this summer? Follow these five money-saving tips to get you to your destination. (WiseBread)
These two share a banking account. ✭Lou✭ / Flickr
I share five must read blog posts about saving money every Friday.
Jim Wang tackles couple finances and weighs the pros and cons of blending your finances with your spouse or significant other. (Bargaineering)
Emergency funds act as a cushion when things go awry, but you’d be surprised how many Americans do not have money set aside. Here’s how to save for an emergency fund. (Fabulous & Frugal)
Borrowing from your 401k, good solution or bad? Laura explains the SEAL Act, that would limits 401k borrowing and ease repayment loans, and tells you what this means for those contributing to retirement accounts. (Money & Happiness) (more…)
Don't let your credit cards turn into a headache. B Rosen / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
With recent breaches of personal data security from Sony, Michael’s, and a Dallas-based email management company, consumers must take steps to keep their information safe. Think you’re untouchable? Take these easy six steps to make sure.
- Monitor accounts – If you notice something out of the ordinary in your bank or credit card statements, give the company a call. Keep an eye out for charges in other states, online transactions, and gas charges. These transactions are the most commonly made by hackers because (more…)
This lady is ticked off by bank fees. Credit: Betsssssy/Flickr
Whatever happened to credit and debit card fees? You might remember I wrote about debit cards being cash cows for banks, which was followed by a post on major banks eliminating fees. Banks exist to profit, so many are raising existing fees to make up for ones that have been disallowed. Here is a list from Billshrink with examples. The good news is that these fees are much more transparent and upfront.
- Credit card interest rates are rising. Over the past six months, nearly 20% of card issuers have (more…)
Dplanet/Flickr
The day of reckoning is here. I sorted through my receipts and tallied my discretionary expenditures during my month-long cash-only experiment. The tally below does not include fixed bills like rent. (New to my forward-thinking budgeting system? It takes 15 minutes to set up.)
Overall, more than a third of my discretionary spending – 35 percent – is unaccounted for because I forgot to ask for a receipt. That means a picture of my spending provided below is woefully incomplete. This is also why some of my category totals, like meals out, seem low.
A number of seemingly random items sucked up my dollars – like bike repairs and gear in preparation for a triathlon May 1. I say seemingly random because unusual expenses like these pop up every month without fail. This is the main reason I created a forward-thinking budgeting system.
My totals for each spending category include tax.
Groceries: $172.22
Meals out, including coffee: $21.12
Drugstore items: $43.10
Bicycling gear and repairs: $169.38, including $100 to ship bike across the country and back
Business supplies: $15.86
Ski trip: $95
House and garden: $45.52
Gas:$41.57
Camping: $40
TOTAL accounted for spending for April: $643.77
TOTAL ATM withdrawals: $1,000
Cash left in my pocket: $11 (to last me until Saturday)
Total unaccounted spending: $345.23
Total rebates and gift cards earned: $29.69
Percent of spending unaccounted for: 35 percent!
My month-long cash-only experiment has taught me a lot about money. I dipped into savings only once, and that was to cover a $533 emergency mattress purchase. I’m telling you it really was an emergency! Grocery shopping takes longer because, with a finite supply of cash in my pocket, I add up the cost of each item I put into my cart so that I have enough money at check out.
I am spending cash like a maniac and have little idea where it is going. Five days into my month-long cash-only experiment, more than $200 has slipped out of my hands.
That’s partly because I feel more generous with a fat wad of bills in my pocket. I’ve fronted a bar cover for friends, paid for breakfast at a coffee shop, and treated myself to a package of beef jerky at a roadside stand. Tasty – but pricey! There was a tank of gas and…I can’t remember the rest.
I’m used to having a neat record of all my purchases at the end of the month on my credit card bill. With cash I forget to ask for a receipt and often the cashier forgets to give me one. How much money at the end of the month will be unaccounted for? I’m guessing almost half.
As I said in an earlier post on preparing to go without plastic, I hid my credit and debit cards in my jewelry box. Later that day I opened a letter from my Alma mater asking for money. I thought, “I can charge this donation and get cash back!” (My credit card has a 1-3% cash back deal). When I pulled out my wallet to retrieve the 16 digits to write on the form, I remembered my credit card moratorium. Oops! I will have to wait until May to send my school a contribution.
The next day I pulled my debit card out of its hiding place. I was going on a solo road trip and decided to carry it as a backup, just in case. If for some reason my car broke down, I would most likely need more than $300 – my cash allotment for the weekend – for the fix. Not that I plan to spend $300 in one weekend. I’m carrying around extra cash because I’m worried about not having enough money, which leads me to spend more because I have so much money. How ironic!
I’m not quitting, however. Support from readers has helped, including this email from Ellen, who saw my column in the N.J. Star-Ledger:
I read your column on going plastic-free (a.k.a. sans credit cards)andwanted tothrow you some words of encouragement from someone who’s been there,cashed that. About ten years ago I successfully completed a credit cardcounseling program, one which required me to surrender all my plasticfor the duration it took me to paydown my debt.
It was a small price to pay for getting my payments consolidated, interest rates lowered and getting those pesky collection calls to stop clogging my voicemail. So for three years, I went plastic-free all while I got my debt in order. Every transaction that required a credit card–like buying an airline ticket online–I simply used mydebit card which containeda Visa logo. This win-win allowed me to make online purchases and have the money directly withdrawn from my checking account.
When I finally received the letterdeclaring me debt-free I eased back into just one credit card which I pay in full or darned-well near try. Since I’m still on a strict budget, I still try and use my debit card only. Good luck on your cash-only venture.
I’m rootin’ for ya.
I’m debating another financial experiment similar to the spending moratoriumI undertook last July. This time, I am considering not using any credit cards or debit cards for an entire month, starting April 1. No, this is not a joke.
I got the idea after talking to a friend who had to cancel her credit card because of fraudulent charges. (This was not the same friend that had her credit/debit/ATM card number skimmed.) My friend didn’t have a back up for some reason and was forced to go without a credit card for about a week.
She was astonished at how different it felt to make regular purchases – with cash. At Target she picked out a gift for her grandson’s birthday that came to $61. She balked. $61? In cash? She would not have thought twice about swiping her plastic.
My friend’s experience made me wonder. Is it easier to stay on budget with cash? I pay my bill in full every month so this experiment is not about learning to spend within my means. It’s about spending less.
I rely heavily on my credit card because I spend cash so easily. In fact, I try to limit my ATM usage to one withdrawal of $100 at the beginning of the month. So there is a chance this experiment could go very badly.
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Don Hankins/Flickr
This post is brought to you by Mint.com, a destination for budgeting software.
A friend needed quick advice after discovering – gasp! – fraudulent charges on her combo credit/debit/ATM card. She wrote:
Someone in Massachusetts has taken money directly out of my checking account for shoes and McDonalds! F—–s! I will get the money it back – eventually – but I’m still mad. It has woken me up. I HAVE to stop using an atm/debit card. It’s just an accident waiting to happen. Any suggestions Ms. Bargain Babe?
Yes! Here are seven steps to take if your identity has been stolen.
1. Call your bank immediately and cancel the card if fraud is evident.
2. Call any one of the three credit reporting agencies and ask them to put a fraud alert on your credit report. TransUnion is at 800-680-7289. Equifax is at 800-525-6285. Experian is at 888-397-3742.
3. Call your other credit and debit cards and check for suspicious charges. Ask the company to raise the identity theft awareness level and be very wary of new purchases, especially ones out of state or abroad. Internet purchases often show up as out of state, so ask if they can distinguish in-person charges from online purchases. For example, my friend can prove that she wasn’t grubbing on McDonald’s in Massachusetts so she will be able to get her money back. If you have travel plans, call and make them aware. (This is wise anytime you plan to use your card abroad.)
4. Request a copy of your credit report to make sure no new accounts have been taken out in your name. You can get one free each year through the FTC.
5. Try to figure out how your identity was stolen. It’s possible the thief has not used all the information s/he has. Change your passwords for all your banking accounts and others that may have been compromised.
6. Consider purchasing identity theft insurance or monitoring protection. Shop around to find what fits your needs and budget.
7. The FTC recommends you file a police report in the area where the theft occurred and you file a complaint with the FTC. You can start both of those steps here.
UPDATE: My friend took some of these steps and found out how her information was stolen.
I talked to Laura Rowley, author of “Money and Happiness”
1. “Female” versions of products are often more expensive. Consumer Reports did a study and found that products with his/her versions, like shaving cream, deodorant, and razors, perform the same but cost $1-2 more for the version targeting women, Laura said. All that pink packaging is cute, but not worth an extra dime.
2. A coupon toolbar saves time. Research shows more people do at least two online searches before they buy. First to find the product and then to find coupons for the product. Laura likes the coupon toolbar at Dealio.com, which automatically finds coupons when you search for products on Yahoo, Bing, or Google. Having a toolbar helps you get more value out of a single search.
3. Certain debit cards earn cash rebates. Laura says she earns 3-4 percent on the account tied to her debit card. To earn this high interest rate, you generally have to do five things. One, swipe your debit card 10-12 times a month. Two, set up direct deposit into the account. Three, use the bank’s online banking program. Four, get statements by email not snail mail. Five, bank locally. You aren’t going to see any of the major banks offering this perk.
But do the benefits of using a high-interest debit card surpass credit card perks? “Totally,” Laura said. “It’s way better to get 3-4 percent interest than credit rewards.” What about not building your credit history by using a debit card? “The people with the best credit scores only use 8-10 percent of their credit capacity every month. By using a debit card 10 times, you are getting the best of both worlds.”
Still interested? Go to CheckingFinder.com, plug in your zip code to find a local bank, and compare offers. The banks can afford to give you this interest rate because they are making money on the interchange fee. Every time you swipe your debit card, retailers pay about 2 percent of the sale, Laura said.
This deal works best for people who are comfortable banking online. Laura recommends using a high-interest debit card for small purchases between $10-$50 and a credit card for bigger charges. She makes the most of this deal by transferring 3-4 months of savings into her high-interest account. But only do this if you can stop yourself from spending your savings!
I just checked for my zip code and one bank is offering 4.09 percent interest on balances up to $25,000. That’s a far cry from the 1.25 percent interest rate ING Direct is offering for a 18-month CD.
