Recap: AAvantage President Stepping Down, FedEx Increases Delivery Fees & More

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• I think the shift in spending from credit to debit is largely misleading, and driven by two factors in my estimation:
  1) Some consumers have had credit limits slashed, and/or cannot get approved for new credit currently, so are spending on debit out of necessity.
  2) Large, big-ticket spending is down in general (think vacations, expensive meals, other major purchases), and those are the types of purchases most likely to go on credit. I believe there's a significant portion of the consumer market who tends to use debit cards for their everyday spending (for better or for worse) and reserve credit cards for the bigger purchases.
  Meanwhile, savvy consumers (like the average DOC reader) continue to maximize their CC rewards.

• What kind of people shift spending from credit cards to debit cards? It really challenge my intelligence.
  Either not to spend or spending on credit cards makes sense.
  But thinking spending on debit cards on debit cards can avoid excessive purchase is idiotic behavior.
  If you don't have enough money, DON'T BUY IT. Simple, easy, and smart. Only morons spend on debit card when they can get credit cards.

  • That's no different than saying to the person who is addicted to drugs just stop doing it. Simple, easy, and smart. Only morons keep on taking drugs. The same way some people can control their drug habit and some people can't is the same way some people can control their spending and some people can't.

  • Add me to the list of people shifting spending from credit cards to debit cards. I have concluded that points, miles, and "status" are merely tools of the credit card industry to generate excessive amounts of stupid spending.

    For now, I will keep a card with trip cancellation, car rental insurance, and lounge access and write off the annual fee as the cost of insurance/admittance. All non-travel expenses go on the debit card.

    What kind of person am I? I multimillionaire that will start early retirement in one year. I suppose that I am also a "moron" that "challenge[s people's] intelligence."

  • Thats a bit harsh dude. Some people rightly or wrongly dont want credit cards or dont want to spend from credit cards for various reasons: past personal or family history with CC debt is a big one. For them, moving to debit card spend means that they can budget better and control their spending. You may or may not agree with them but it's their choice to make.

    Another reason is also with people who are getting their income cut short due to layoffs, furloughs, reduction in hours/pay etc. SO instead of the usual pay for everything via CC and then pay back at the end of the month, they need to be tighter in their spending now and only spend what they earn (which may not be certain for many people)

    • Not to mention the arrogance of calling the very people who indirectly subsidize your rewards "morons".

    • It's harsh, yet is true.

    • I agree with both of you. Logically and financially, credit card is the much better payment tool compared to debit card. However, for people without enough budgeting skills, using debit cards as a means to self control is the kind of discipline that I respect.

• The title of this Recap post says "AAvantage President". It's a typo, it should say "AAdvantage President".

  • Nope.. its an 'Advantage' to no one.. so AAvantage which makes no sense, makes sense to me..

• Amazing how other consumers continue to make this a profitable hobby. Debit cards are my worst nightmare because they have access to all the money in your bank account and dispute resolution can leave you out of pocket for months. Credit cards are better in literally every way assuming you are not too stupid to pay it off every month

  • I think it's quite simple. When people are pretty sure they're going to have a steady income, they're more willing to do credit card spend, whether or not they're the kind who pay them off every month. If you're not sure you'll have enough income to pay it off, it makes sense to not spend what you don't have right now. A better strategy than using a debit card would be to use your credit card and then pay it off immediately -- in other words, keep your balance at zero. This would get you the advantages of credit cards (points and dispute resolution) without the risk of overspending.

  • Whats with the name calling guys? Please can you make your points without throwing in "stupid", "moron" etc??? Really?

    • Seriously.

      If you want to name call or generally be uncivilized, stupid, take it to twitter.