Debit Card Do's And Don'ts Part I
As a Consumer Bankruptcy Attorney, it seems as if a couple of questions are on everyone's mind. One of those questions is: After bankruptcy, how will I rent a car or secure a hotel room if I cannot keep any of my credit cards? My reply is simple: Use your debit card. People are often shocked that yes, they can use their debit cards for this purpose. Yesterday, my friend and colleague in Connecticut, Eugene Melchionne, wrote a blog for the Credit Law Network, titled "Using Debit Cards and ATM's Effectively". After reading Gene's article, it made me think of several reasons why people using debit cards need to be careful.
But before we get started, you have to know a little more about me, and my belief system about bankruptcy and what I hope to achieve for my clients. First, I believe that bankruptcy is a financial tool that if used correctly, can provide relief for the honest, but unfortunate debtor. This relief comes in the form of immediate financial relief from creditors obligations, but does not stop there. My goal for each of our clients is to give them the opportunity to live a credit free lifestyle. In other words, to break away from the use of credit in any fashion. Why?
The use of credit implies two things in my mind: Interest that will have to be paid and what the true cost of an item is going to be. Interest is the great equalizer. I don't like paying interest to a bank so I can have something now instead of when I can afford it. Unless you are in that small, exclusive group of individuals that pays off the balance of each and every debt every month and pays no interest to anyone, Banks, Visa, Mastercard, Discover and American Express offer credit to individuals to allow them to spend money now, that they do not have. In other words, you can have things now and pay for them later. The ability to shift the time frame for payment may cost you big time in the form of interest, penalties and other charges. So, our goal is to have our clients break this cycle of debt, "the charge and pay syndrome", and live on a cash basis.
Please continue on to Part II for the remainder of this article.
This post is submitted by Carmen Dellutri, Esq of The Dellutri Law Group, P.A. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Credit Law Network, Debt Law Network, and Mortgage Law Network. Additionally, Mr. Dellutri is on the Board of Directors of the American Board of Certification, and he is a Board Certified Consumer Bankruptcy Attorney.
