The Debit-Card Rebellion
a day ago
- #credit cards
- #personal finance
- #debit cards
- Marc Fusaro researched methods to control credit-card spending, including freezing cards in ice.
- Debit card usage increased after a 2009 law restricted credit access for people under 21.
- Venmo and other companies are marketing debit cards with rewards programs to make them appealing.
- High interest rates and cashless stores have contributed to the rise in debit card popularity.
- Gen Z prefers debit over credit due to fear of debt, influenced by rising student loans and financial insecurity.
- Credit cards, introduced in 1958, became profitable and popular with rewards programs like Discover's rebate.
- Studies show credit cards encourage higher spending compared to cash, partly due to rewards and delayed payment perception.
- Americans carry $1.2 trillion in credit-card debt, with high interest rates exacerbating financial strain.
- Debit cards, mainstream since the 1990s, help users avoid overspending by linking to real money.
- Overdraft fees on debit cards are lower than credit-card interest payments, making them a safer option for many.
- Debit cards are increasingly used for online payments to stay within budget, especially by debt-averse Gen Z.
- Anti-debt attitudes, influenced by financial pundits, have led some to avoid credit cards entirely.
- Debit cards save money at independent stores by avoiding credit surcharges and are linked to digital wallets and BNPL accounts.
- Payment facilitators like Cash App and Klarna offer debit cards with rewards to attract younger users.
- Credit cards still dominate half of card transactions, with wealthier households preferring them for rewards.
- Debit cards provide an off-ramp from credit-card debt but don’t break the cycle entirely.