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5 Reasons Why Debit Is Better Than Credit

2 Minute Read

If you’re starting out on the Dave Ramsey plan, you might wonder what the big deal is about debit cards. You already know all the reasons why credit cards are a total sham—and, if you don’t, we’ll help you understand—but why are debit cards so much better?

Here are five reasons for you to cut up the credit cards and switch to exclusively using debit cards:

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1. No interest.

Think about that. In a marketplace that is itching to charge consumers with interest, you can walk up, swipe your debit card, and be on your way. No payments six months from now. No 30% interest on your account. No 90-days-same-as-cash with five pages of fine print. It’s quite simple: You have the money available in your account, so you buy what you need.

2. Spend less.

A study at McDonald’s found that when customers used credit cards they spent 47% more than customers who used cash. Using cash is your best option.

3. No bills.

Wouldn’t it be nice to live a life with no bills? We all want to get there eventually—with no mortgage and no money owed to anyone. By simply using a debit card and ditching the credit card, you can take that first step. No monthly bills. No due dates. No 90-minute phone calls to an automated customer service line. No stress. What’s not to like?

4. No sharks.

You might ask, “I pay my credit card balance off every month, so what’s the big deal?” If you play with sharks, you will get bitten. You can’t beat the credit card companies at their own game. So get out of their game and make your own—one that involves your money, not their money.

5. Dave approves.

Dave Ramsey’s been saying it for years—cut up those credit cards! Debit cards work just as easily as credit cards and won’t leave you in debt. Use money you have instead of imaginary money you hope to have some day.

What do you love most about using debit? Did you find it hard to give up credit? Let us know by leaving a comment below.

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