The irony of all this is that Dave Ramsey’s “financial freedom” program requires a debit card to sign up (will not accept credit cards).
Debit cards are more dangerous than credit cards imho—if they are hacked the money comes out of your checking account and is lost.
With credit cards any theft is immediately addressed by the credit card company and you are not responsible for payment.
“Financial freedom” to get ripped off!
(I actually like the guy but do not like debit cards.)
Can handle the debit card issue by depositing all $ directly into savings (or into debit, then auto-transfer to savings), then [auto-]transferring the weekly budgeted amount to the debit card. At worst you lose a week’s spending.
Variant (which I do): have _two_ debit accounts, one receiving direct deposits and handling automated payments, auto-transfers $ to savings, savings auto-transfers limited/budgeted $ to general spending debit card.
So long as use of the debit card operates via Visa/MC credit system (vs you having to enter your PIN), Visa/MC is responsible for stolen funds. (Might be a bit harder to persuade them into restitution, but they’re legally on the hook.)
(I actually like the guy but do not like debit cards.)
I like him too, and I think he has helped millions get out of debt and get control of their finance and lives, which benefits society as a whole.
He’s a bit extreme when it comes to credit cards, but I sort of get where he’s coming from. For a lot of people it becomes a temptation to overspend and eventually end up with a balance they can’t pay off, especially for those who are undisciplined or on the edge financially.
I use a credit card and pay it off every month. It monitors strange expenses and covers any frauds.
Regarding debit cards: That would only be the case if you waited to report it more than 60 calendar days after your statement is sent to you.
ATM or Debit Card Loss or Fraudulent Transfers.
If you report an ATM or debit card missing before someone uses it, the EFTA says you are not responsible for any unauthorized transactions. If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:
If you report: Your maximum loss:
Before any unauthorized charges are made. $0
Within 2 business days after you learn about the loss or theft. $50
More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500
More than 60 calendar days after your statement is sent to you. All the money taken from
your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.
If someone makes unauthorized transactions with your debit card number, but your card is not lost, you are not liable for those transactions if you report them within 60 days of your statement being sent to you.
https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards