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Unformatted text preview: weaker if lost
No stop payment ability
Loss of float
Rewards/points not as good as credit cards
Debit cards are not considered “best practice”
but may be appropriate for spenders
12 Credit Cards MasterCard Used by 8 out of 10 Americans Onethird are convenience users The other twothirds are borrowers Cobranding linking a credit card with a business offering rebates on products and services (inflexible benefits) $50 exposure for lost card 13 Money Principles: Credit Cards
Money Principle 5: You will never get ahead financially if you are paying interest on credit card debt…and paying off credit card debt is a great investment.
14 U.S. Household Unsecured Debt
$12,000 2011: $7,000 $10,000
1990: $2,966 19
96 $2,000 Household credit card debt
15 The Next Debt Crisis
Student loan debt totals $1 trillion Amount exceeds all US credit card debt 66% of seniors owe $25,000 25% are behind in their payments Average senior has $3,000 of credit card debt Average cost of a four year degree $20,770 for public universities $36,400 for private universities Student loans are generally not dischargeable in
16 UCF Studen...
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- Spring '14