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Old 12-01-2006, 03:49 PM
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kelkat kelkat is offline
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Default credit vs debit

Is there really a difference in the two?

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I just started reading Larry Burkett’s 1992 book entitled “Victory Over Debthttp://www.assoc-amazon.com/e/ir?t=d...t-20&l=ur2&o=1” and right off the bat he makes a distinction that I must admit I had never really thought of before. I have a feeling, though, that it could be an important distinctlion. Burkett points out that credit is simply an extension of your purchasing power, debt is when your credit is extended beyond your purchasing power.
It gives me alot to think about.

Outta Debt / Credit vs. Debt
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Old 12-02-2006, 09:27 PM
MasterMind MasterMind is offline
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Default Re: credit vs debit

From my point of view, getting credit on a debit card will never exceed the debt that you can pay off.

Some debit cards are allowed to access a credit line in case you exceed the amount of money that your really have in the bank, but not that much to get you in trouble.
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Old 12-03-2006, 09:24 PM
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brian brian is offline
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Default Re: credit vs debit

To be honest, I treat credit as debt, so always ensure that whenever I buy on credit, it's a debt I can manage simply and easily.

There's an nice extension of the argument here:
» My Credit Card Strategy*on*Blueprint for Financial Prosperity

where the guy argues for using different cards with different strategies. I already use my debit and credit cards very different, with the debit card for regular monthly expenses, and credit card for anything on top of that.

What's really interesting is the idea of using *different* credit cards for different strategies:
samerwriter » Blog Archive » Year-To-Date Credit Card Rebates

Something I don't quite understand, though - although he mentioned rebates, I can't find any mention of actual debt generated.

For example, those Amazon cards have a very high APR, and if you get suckered into paying that, those gift certificates just won;t cover it.
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Old 12-12-2006, 11:10 PM
reviewer reviewer is offline
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Default Re: credit vs debit

Credit cards can easily create debt (and in fact are designed to). You should be careful to charge what you can pay off quickly.
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Old 12-15-2006, 05:40 AM
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kelkat kelkat is offline
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Default Re: credit vs debit

That's the key to "using" credit. I use my credit card to pay for expenses (that I know I have money in the bank drawing interest specifically set aside to cover that expense) and those charges earn points or cash back - depending on the card.

If you only use what you already have then you don't get caught in the debt trap. I does take self control, though.
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Old 12-18-2006, 07:29 PM
destiny_star2006 destiny_star2006 is offline
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Default Re: credit vs debit

Hmmm I diddnt really think of it like this!
Thanks for the read made interesting thoughts appear!
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Old 03-13-2007, 04:08 PM
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Default Re: credit vs debit

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Originally Posted by MasterMind View Post
From my point of view, getting credit on a debit card will never exceed the debt that you can pay off.

Some debit cards are allowed to access a credit line in case you exceed the amount of money that your really have in the bank, but not that much to get you in trouble.
This is true, but it usually it comes with a large fee. I've done this before and have been charged a $35 fee for going over, definately not worth it.
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Old 03-17-2007, 01:25 PM
Christopher2k7 Christopher2k7 is offline
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Default Re: credit vs debit

I rather debit when buying things as it's very easy to go over board buying items then debt and bad creidt scores
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