Cash or Debit Card...........

steve700

Do you think that you would save more money by paying cash or using a debit card?

I guess that a debit card is simlar in principle to a credit card in that 'it's too easy' and you don't see the money that is leaving your fingers....

Although my financial situation is reasonably good, I do still have a car loan and am keen to clear this and start overpaying on the mortgage.

What, also, would you consider as a reasonable amount of cash to draw out at the beginning of the month for day-to-day purchases.....
(I know that it differs but for basic food/drink)

Comments please...........

Thanks

immoral_angeluk

You want to withdraw ALL you day to day money at the start of the month? Can I ask why?

steve700

So I know that 'when it's gone, it's gone' and that will hopefully encourage me to be more frugal.........

yung

debit card is just like paying cash, if your are in good financial position and can pay in full your credit card as long as you know what you are spending your money on you can make use of reward/cash back credit card. have a look at this. http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1087717218,37843,

steve700

Thanks, Yung.

In the last couple of months, I have cleared my credit card debt and cut the card up.

My income would allow me to take out a 'cashback' card easily enough but now that I've cleared the last one, I would prefer to have the knowledge that I don't have any card hanging over me.

My overdraft is £750 which is currently being used up to £522.

This month, I'll clear that and then bring the overdraft to a basic £100 to use for emergencies - Am I right in thinking that an overdraft counts against your credit rating?

Once I've done this, I want to be more careful, hence my original question.

Cheers

pennylane99

I prefer using debit card....with cash in purse/pocket its too easy to end up spending on stuff I didnt really need...

immoral_angeluk

steve700 wrote:

So I know that 'when it's gone, it's gone' and that will hopefully encourage me to be more frugal.........

Oooh you're braver than me. I'm the type of person where if I have got money in my purse I'll spend it and justify it to myself by saying 'oh it's ok because I've not been to the bank.. ':cool:

steve700

pennylane99 wrote:

I prefer using debit card....with cash in purse/pocket its too easy to end up spending on stuff I didnt really need...

Thanks - My thought process was saying that I am more likely to just flash my debit card than I am to cough up hard cash........

pennylane99

steve700 wrote:

Thanks - My thought process was saying that I am more likely to just flash my debit card than I am to cough up hard cash........

for me it was things like magazines, or a few sweeties....lol

not much moneywise, but it all adds up....I wont use my debit card for small amounts like that....but if I had the cash sitting in pocket it would probably be spent....

pudding06

I tend to use my debit card. That way I save myself all those little purchase that I'd buy if I had cash

eg a bar of chocolate for 49p I'd buy with cash wothout thinking - but wouldnt dream of putting on my debit card - I'd be embarrased. lol

It depends on you really. WHy dont you try cash one month and debit card the next keepoing records all the way of everything you spend it on and where, then you'll know whats best for you.

good luck

pudds

James&Shell

I always use my debit card as i hate cash i spend it too quick.

Another ood idea is to use your debit card and that way if you loose your recipt for a purchase that you need to take back you have your bank statement as proof of a purchase there.