Debit Cards

By now many college students are back ondebit card transaction.A big drawback is the lack
campus, if not in classof theft protection. If the card is
then settling into their dorm rooms and gettingstolen, you have two days to report it, or else
ready. Among theiryou are liable for
books, bed sheets, new clothes and other$50 of unauthorized charges. This jumps to $500
necessities will be quiteif you don't discover
often a credit card. Sometimes with the parentsthe theft. If you wait over 60 days, forget
name on it, sometimesgetting your money back.
just the students own.Nearly 75% of allTo boost use of their cards, Visa and
sophomores, juniors and seniors have maxed outMasterCard are promising that
atthey won't hold users liable for unauthorized
least one credit card. Nellie Mae's survey in 2000usage. These cards
showed 23% of allcarry the appropriate company logo and don't
freshmen and 92% of all sophomores had atrequire a PIN number for
least one card in theirusage. You sign a receipt just like a credit card,
pocket.I don't need to lecture you on the dangeronly the money
of giving a credit card towill be removed from your account in a day or
a college student who is working part time andtwo.I could go into detail about how a credit card
going to school fullworks, and how you
time. The average student will earn a bachelorscan use a debit card for cash withdraw from
degree with $30,000ATM machines, but I don't
in student loan debt and nearly $3,000 in creditneed to.The best method of paying for
card debt. Not good.purchases by college students is still
I recommend a debit card for the simple reasoncash. But for those who want the convenience
that when used, youof plastic, the debit
are only using money you already have. Whencard is the next best thing. So if you gave your
you swipe the card acrosscollege student a
the terminal at the store, the information iscredit card this year, take it away and replace it
transmitted to yourwith a debit card.
bank which then takes the money out of yourAnd then hold the student accountable for their
account. Ta-da, no debt.purchases and go over
Of course if you have automatic overdrafttheir transaction record a couple times a
protection this feature issemester.Roger SorensenAmerica's Financial Guide
worthless. AOP extends you a loan instead ofcan be found at ==> Subscribe to Money Basics
bouncing the check orvia - Are you ready for financial freedom?