The Number 1 REASON Debit Cards Are USELESS!
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- Опубліковано 19 лип 2024
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The Number 1 REASON Debit Cards Are USELESS!
0:00 - Video starts
2:05 - How debit cards work differently than credit cards
4:40 - My painful debit card lesson
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This Video: • The Number 1 REASON De...
Channel: / minoritymindset
Video host: Jaspreet Singh
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DISCLAIMER CONT'D: I'm just a random guy on UA-cam so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
Thank you for watching! If you enjoyed this video, you should watch - 5 Don'ts When You Get Paid: ua-cam.com/video/YBB2te7gnJI/v-deo.html
Now do a 5 don'ts when you get engaged (finance wise)
At least i dont pay interest
Credit cards are like fire. Both are useful tools if used properly, but used wrongly both will burn you. Become financially educated to avoid these mistakes.
Instructions unclear became financially educated still burned myself bbqing
@@zavoz1456 Well, with credit cards you should never cary over a balance. Always pay it off before the bill is due! Only use your credit card for normal expenses; don’t use it to go on a shopping spree.
I pay off my credit card DAILY. The first thing I do every morning is log onto my CC account and see if I have a balance. If I do, then I set up an online payment directly from my bank account. I basically use a CC to give myself a 24-hour interest-free loan.
@@LG123ABC Nice, that’s really smart of you to do so!
@@LG123ABC That's some big brain stuff right there
Congratulations on being engaged!
Yeah Jaspreet……Congrats 🎉
WOOOOO. HOOOOO‼️👍🏽‼️
@Sea Gull I hope so. A prenup shouldn't be a problem, unless something is going on 👀
What a blessing! So happy for him and his fiance 🎊
Wow I can’t image ever being married
In your last video I saw a comment of someone making well over 40k monthly on their stock picks and I wonder how possible he could have done that because i have been trading for over 4 years now and i still cannot make 25k annually. You really should make videos on how to outperform the market and make good gains
Dave Ramsey would have an aneurysm watching this!
Exactly. I’m a Ramsey fan and this is killing my brain. I Thought i like this dude.
Dave Ramsey's whole outlook on money is driven by emotions, not by facts.
Dave Ramsey targets the majority while minority mindset targets the minority. Totally different audiences. Ramnsey wouldn't never admit this or do this but a large majority of the ultra rich live off of debt. Debt is a great way to to avoid taxes. If all of your money is tied up in investments, when you sell, you have to pay capital gains taxes but if you instead buy with debt, you can delay taking the gains. You are not taxed on unrealized gains and you can also use the debt to offset some of your gains taxwise as interest is tax deductible. Your saving way more on taxes than you will ever pay in interest.
@@MrJamieBattle Ramsey only targets those who can’t handle the emotional side of handling your money, mathematically using credit cards for their benefits makes way more sense
I felt the same way 🤣🤣🤣
What I like about a debit card is that once I pay for something it's paid for...and I don't owe anything
He keeps saying "if" you lose your debit card. The one time I did, I immediately called to stop the card and was issued a new one. There were no further transactions. I'm completely puzzled by his comments.
I feel like spending everything on a credit card makes it super hard to keep track of. if my spending money is all on my debt card I legit can't spent more than I have . With a credit card they sky is the limit and one fuck up and you now have debt and paying interest for what 2% cash back?
@@EmperorGreymon He also specifically said NOT to use credit cards if you aren't financially disciplined
@@bromack3 It's great, if you can call immediately. Did thieves take your phone along with the card? Was it a few hours before you realised it was gone? Does your bank keep you on hold for half an hour to report it missing, while thieves drain your account?! (Mine would - yes, I asked - and I'm disgusted.)
Yea if you are not disciplined and smart enough to pay off your credit card 💳 off completely each month. Then yea keep using your debit card and miss out on the perks.
I've been using my credit card like a debit card for 2 years now. Wish I started sooner.
Same. I don't understand people who think having a credit card means they can suddenly spend more than if they were to pay with a debit card.
I’m getting mine soon.. I really wish I knew about this a few years ago
As long as you use credit cards responsible, credit cards are the best and safest way to spend money! Great video!
Rich people lies to me.
Safe for abusing
Dave Ramsey is like NOOOOOOOOOOO.
Dave Ramsey be like "You can afford guac after you've paid off your home and student loans. Meanwhile, RICE & BEANS!"
Nice to see i wasn't the only one who thought that lol
Dave Ramsey mostly deals with people who are bad with money.
If someone is bad with money they probably are not ready to use a credit card yet.
I don't think that his audience is bad with money, but he is known more for how to get out of debt and stop playing kissey face with the bank by playing the credit card game. Different strokes for different folks
Congratulations! Many blessings to you both! Thank you for all the information you provide.
Thanks 4 breaking it down again in yet another new way!! Very informative thank you
What drives me mad is when you've got a great credit score but...
Still get rejected for a credit card...
Without any reason why!
Have you checked your credit report lately? Is there anything on there you don't recognise?
Sometimes your score might be too good for the card. Credit card companies make most of their money from people who don’t pay off their entire balance. So if you do this they might deny you since you aren’t making them money.
@@chetanadupa9811 Makes sense. Would be nice to have a fake reason from them rather than no reason at all ;)
@@iloveprivacy8167 Everything seems above board so that's why I was confused
@@chetanadupa9811 Yup... worked for a major bank in its credit card operations. Card companies want "revolvers," people who carry a balance (so the debt revolves and generates interest on those unpaid balances). They don't like people who pay their balances off every month (nasty people like me), no matter what their credit scores are.
Well explained. Great job.
Congrats on your engagement. Good information as always.
Congratulations my friend! I wish you both the best! :)
Damn he’s off the market, back to learning
I know, Jaspreet is a handsome and smart man!
Best way to start the day !
Great advice 💯👌🏻 thank you
Thanks for the info
Another great 👍🏿 video
Spot On ‼️
Congratulations on your engagement! 💕
Woah! Congratulations Jaspreet!
Great video. Lots of information.
BTW this is an awesome video. Thanks.
Dope, thanks Jaspreet!
Wow! Thanks man working on it now!!👍👍
I am About to go on a Vaca and I find this Video Very helpful video. Ty Des
Great video, Very motivational, inspirational, and educational.🤯 I will definitely apply some of these principles to grow my UA-cam 📽 channel and businesses, thanks a ton..😃🤜🤛
Way to go Jaspreet ! Bring truth and financial freedom!
Brilliant!!!
Thank you Jaspreet! Question: CC companies here in Guatemala always offer you an “insurance agains fraud” service. Is it worth it to pay such fee?
Thanks for this Video😂
CONGRATS JASPREET !
That was the smoothest engagement announcement, I have ever seen. Congratulations! 💛
I agree with every point you made in this presentation. The one thing that was not addressed was this - do you believe people tend to spend more per transaction when they use credit. In your Chipotle example you cited “extra Guac.” Would someone buy extra guac if they were paying cash? Just a thought. Great content as always.
It's a great question, but entirely dependant on how the individual perceives credit.
For people like Jaspreet (and myself) nothing is spent using a credit card without knowing there is cash on hand to pay for that item without incurring interest. We are merely leveraging the card's incentives and security features for our own net benefit.
If you develop a habit of frugality it will impact all of your purchasing decisions regardless of the instrument you use to complete the purchase.
@@curtbalch2321 going back to Dave Ramsey, he has found people spend 30% more when using a credit card over using cash.
It's not a matter if a person is paying off their CC, the question that wasn't addressed was, is the 30% study correct. I believe it is correct, even if a person is paying off their credit card, and not paying interest.
Fyi, for the past 20 years I've paid my CC off every two weeks. And I do spent most using CC, than when I use cash.
@@douggardner1303 for me personally, I spend credit like I spend cash. I don’t purchase anything extra I wouldn’t buy with cash because I don’t want to pay a big bill at the end of the month. The more I think about it, I may be cheaper on myself with my credit card than my cash. When I have cash in my pocket I’m more likely to say oh I have two extra dollars I’ll buy that too. Or throw it in a tip jar. With my credit I’m more like naw I don’t need that. Also I’m a couponer, I’m already hesitant about extra spending. So it really depends on the individual.
good point. kind of like when i have a hundred dollar bill i tend to not want to use it but as soon as i break that bill, i spend 10 here 20 there and it goes pretty quickly.
Would someone buy extra guac if they were paying cash?
No. Americans love credit cards because they are broke.
Thanks! :)
Could you do a video on the best credit cards for rewards?
We need pics of the crazy wedding you’re going to have! Congrats bro...
I learnt this when a hotel overcharged me by accident and it left me with -$30 in my bank. They refunded it before I even noticed the next day but it took like 3 weeks to get all that money back. I didn't have a credit card at that time.
Could you make a video on how money effects relationships?
When I got the actual fact about salaries was during the lockdown. Salaries don't make you rich. I went into Trading just last year I say I bought my first house in the beginning of the year. Then realised I wasted a lot of time
Congrats, I believe good investment pays once you're able to take the risk. Last year taught us a lot. Happy for you man
That's amazing, how profitable is your trading?
I trade Stocks, it wasn't easy going when I started but through the right personnel I was able to build and grow. I earn thousands weekly trading
I'm glad is working for you congratulations
Started trading stocks last year and my story hasn't been great, lost nearly $20k in investment. Just had to take a few steps backwards.
This is great advice. I use my credit card that same way. I get the benefit of the rewards system. It took some financial maturity before I was discipline enough to do this. If you are not discipline with your finances. Don't do this!
"But I've never met a millionaire that got where they are due to credit card rewards" - Dave Ramsey 😆😆😆
*Graham Stephan, Meet Kevin and Jaspreet Singh has entered the chat.*
@@spacefleming5390 *DUE TO* Key words.
@@SquidRider Ramsay's premise is stupid though. Of course no one would get rich that way, and no one ever claims they will, but I am _richer_ for getting this cashback reward than if I had bought all this stuff on a debit card.
@@stephenshelton4267 exactly, it’s just an added benefit
No one got rich clipping coupons either, but Ramsey would have no problems with coupons.
Ok, I will try this.
Great video .....explained perfectly, clear as clean water. I have family that just can not seem to understand, or can not see the difference between debit and credit cards. Hopefully this video will hit them like a brick on the head.
Citi just released a new credit card, Custom Cash Card. Looks enticing!
Can u do a video on aspiration debit card (pros and cons)? And worth
The bulb just went off in my head about this a few weeks ago. I'm working on setting up to pay everything possible with my credit cards to get the cash back benefits, to put my money to work better for me. Thank you for reinforcing this method.
Charge $500 and get $5 back You are a player.
Annoyingly, some utility companies (gas, phone, electric, water, cable) are not allowing you to use credit cards and require you to use a debit card or an actual bank account number for their automatic monthly debit system. For instance Verizon mobile, you only get the monthly debit discount ($15 or $20, can’t remember which amount), if you use an actual debit card or bank account number.
@@Karim7Hearth yes, I've run into that problem. Can't put everything on a credit card.
Dave Ramsey stans will argue this all day, but there are SO many benefits that make it WAY better and SAFER to use a Credit Card over a Debit Card. I have been saying this in my videos as well after I learned from Jaspreet!
I think the problem is psychological. With a credit card you feel more free to spend. With a debit card it is actual money you have now leaving your bank account immediately.
It’s why people who buy a new car are more apt to get a higher trim with more features if they are financing vs if they are writing a check today. You are more likely to talk yourself down from the upgrades and be happy with the cash difference you get to keep.
Most of us aren’t so disciplined that we have that level of control with a credit card.
Ramsey appeals to idiots who cannot control spending when walking into places like they are candy shops. Any normal person who has discipline to not overspend should always use credit cards.
@@calminacrisis126 Yep, it's a psychological issue. If you cant overcome that, and follow a budget, stay the hell away from credit cards and use cash envelopes instead.
@@edwardaldrich7213 I would agree he appeals to a certain brand of people.
Ramsey has stated he has friends that use credit cards. He said he wouldn't tell them to stop using them because they are disciplined with proper use. If Dave Ramsey starts recommending credit cards, it will confuse the idiots that follow him. So he makes it simple, stupid.
I wish I knew this when I was 18 but I can start now ty. :)
Now that you bring it up I don’t know why I even have a debit card I haven’t used it in years lol
Yay!
Who else is eagerly awaiting wedding-related financial content?
Congrats on the engagement!
I've been trying to decide if I want to use my credit card instead of my debit card. Thanks for showing why it's better to use the credit cards.
Almost the same but my debit card got the same protection (almost) as my black card from my bank. But it just merged with another bank so I got to check on what the new protcal is. I get and keep every receipt and file them away every year on everything I buy from gas to food. I inventory what I make and spend every year. Good video!
I never thought about it that way...
Also when you rent a car with certain credit cards you are given insurance on your rental. I travel a lot and always rent with either my AMEX or Chase sapphire travel rewards card.
8:34 and going on re-explaining example #4 - which I completely love because I straight up was not listening the first 4 minutes
Can you do a segment on books that you would recommend for someone to start to learning about real estate investing?
I grew up never carrying cash.......because you might get robbed. And I tried to not carry a debit....because you might get robbed. CCs were better protected and didn't effect my bank acct in the event of theft.
Extra guac😂
I use budgeting software, I'm not to the point I feel comfortable using it for day to day purchases but I am transitioning to paying monthly bills with it
Awesome as always
I feel you - I'm just not there yet. Losing a debit card is a low-probability/high-damage risk for me, while overspending is still a high-probability/low-damage risk. I'll get to the credit card stage, but I need to get that probability of overspending down first. And that feeling of loss I get from handing over bills or seeing account debits keeps me focused.
Jaspreet,
Due to you, I now only use CC when able. I use to only be a cash only, not even debit.
For me I feel using hard cash builds your mental resilience to purchases i.e. it hurts. Which helped me use my CC the right way because I use have 20k in debt on my CC when I younger/dumber.
The only problem is that occasionally a CC bill gets lost or misplaced, so you need to enable auto-pay to at least cover the minimum payment.
The only downside to daily using credit cards for me is that it takes days for balance to show up to be able to pay off the balance on what you just purchased. I keep tabs often on my bank account budget. With debit, it's instant subtraction from account. With CC, extra math work is required to do daily calculations on budget because can't pay off CC balance right after you use it.
You have a closing date on your credit card. It will show you your statement balance. That's the amount you have to pay before the next closing date to avoid interest. You don't have to pay for each individual item you purchase. You just have to pay the closing statement balance in full before the next closing date.
@6:23
My father taught me that lesson. Sorry you had to experience that, Jaspreet.
It's important though to not use credit cards if you have poor self discipline. A debit card with a credit limit is a great way to build up your credit score without the temptation of getting into debt.
Switched to Chase Sapphire Reserve, I’ve been using a debit card 💳 for years…glad I did.
I’ve always been scared too get a credit card I didn’t understand them but I think this video finalized my decision on it 😂
This was actually enlightening, Ive become fairly financially smart, but from you talking about this enlightened me to the fact I could be getting cash back rewards with a credit card, unfortunately Ive avoided credit cards due to the fear of being in debt, yet that fear came from me seeing how other people fail, perhaps I should give this consideration.
Even if someone takes my debit card I never keep my ful amount in checking and turn off overdraft.I keep enough to spend on that day..Move money from savins to checking takes a second
Jaspreet! I hope you see this!
What if you use your credit card to pay for something, and immediately send a payment instead of waiting until the due date?(sorry if you cover this in the video,I’m only 2 minutes through)
👍🏾👍🏾👍🏾👌🏾👌🏾👌🏾👏🏾👏🏾👏🏾👏🏾👏🏾 I'm in that boat of debit cards only but I may make the switch to credit card since my financial discipline is far better than what it was in my 20s. Any good credit card suggestions to get the max for day to day spending??
I second this and would love to know any suggestions. I hear Chase Sapphire is a great one.
Such a great video, excellent advice. I just started to do this myself about couple of months ago. Trying to get my wife to do the same.
Absolutely brilliant advice. Putting most of my expenses on my credit card has given me 2 free iPads for my kids in the last year from cashback rewards.
I make plenty of points on my credit cards. Never carry a balance. Only time I have to use a debit is one local grocery that does not take credit cards. At least several of the things like the DOT here take direct ACH payments so I can avoid the CC fees.
I keep my cash in saving account, last time i checked there was 9$. I am sure no one get hold of it.
Bhai Saab wassup
Graham made a video about this a couple years ago.
Wow, I was so not expecting you to say you only carry credit cards 😆 This makes so much sense though.
I've been following this advice since I heard it from this channel a couple of months back. What I've done is turn my card purchase points into cash back and drop it into my Acorns account. Not terribly complicated or earth shatteringly innovative, but it's pretty good considering i don't know what the hell I'm doing
Jaspreet or others, do you pay monthly utilities and mortgage with CC as well?
Anyone? Anyone? Bueller? Bueller? Oh sorry, most of you are too young to get this reference.
Plus using a CC and paying it off monthly helps the FICO score. Correct?
Agreed 100% only put things on Credit that you can pay the full balance on so you don't pay interest. If you have a cash back or points can lead to free stuff. I only use the debit at the ATM for a bit of cash for certain stores that don't take credit cards usually fruit and veggie stands and farmer's markets.
Depending on which one but many Credit Unions have great debit card protections. This is one of the main reasons why I use a Credit Union over any bank.
THIS MAN AND HIS GUAC LMAO
I hate credit card debt, I just got out of it 2 years ago and never want to go back in it as long as I can
These days, bank ATM cards are also Debit cards. The only time I pull my ATM/Debit card out of its hidden location is if I'm going to the ATM to get cash. And then I use cash or credit card for transactions, never the Debit card.
Love this video!! I'm one of those who's only been using cash or a debit card for the last 10 years. As an unintentional result, I'm nearing 30 with essentially no credit. I'm curious as to what credit cards would be best for me? Do I need a secured card?
Secured cards are the best for someone with no credit or bad credit. If you can get approved for even a 500 dollar unsecured credit card you can easily raise your credit score. Like other and Jaspreet's guidance have stated, credit is a tool. You must first familiarize yourself with a tool to use it correctly. Credit history plays a pretty big chunk of your score along with balance/limit and obviously late payments. It will take a few months or even a year or so but by being diligent you can raise your credit score to over 800 in that time period. Just remember to never carry a balance and never miss a payment. 30% or lower on balance/limit is okay, but the lower the better. After a few months of consistency you can request a higher credit limit to make this easier but as always be careful with your spending.
I only used my debit card for check deposits at the ATM
If you have the money available pay via debit or cash. For security purpose, there's already an option to lock your debit card from your online account, if it gets lost or stolen.
The one thing you said that was inaccurate was the overdraft thing. The whole point of debit cards is that transactions are only approved if there is enough money in the account to cover the purchase. In the 2500 vs 2000 example the pos terminal will reject it.
Congrats on the engagement, Jaspreet! Don't forget to set a wedding budget. :)
I've always wanted to know more about credit cards. I think what scares me the most is the horror stories of people paying off their credit cards in a punctual manner, then suddenly having their credit scores drop for some small reason
Another thing to consider is the cash/debit tax. Businesses know that a lot of people do you use credit cards and the business will be charged a fee on all their purchases, if its 3% then they will raise their prices by 3% to cover the fees and keep their profit the same. If your using a CC and getting 1-6% cashback then your making back some, all, or more than they raised the price. If your using cash or debit to buy everything, not only are you NOT getting any money back but your paying EXTRA for everything you buy to cover our merchant fees.
my credit card is through my bank. When I swipe it, it asks if I want to use debit or credit. Am I still protected when I select credit?
Completely agree. One thing you missed, with the cards vs cash you can go over your monthly spending and see where you money is going. It helps keeps the spending under control.
Congrats on the engagement , but I thought you were already married.