Onethirdareconvenienceusers

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Unformatted text preview: weaker if lost No stop payment ability Fees 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 $8,000 $6,000 $4,000 20 10 $0 1990: $2,966 19 96 $2,000 Household credit card debt Source: Cardweb.com 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 Student bankruptcy bankruptcy 16 UCF Studen...
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