Debit Cards are Potential Holiday Hazards

The urge to be generous while holiday shopping, and using a debit card to do so, could cause a holiday hangover--similar to a credit card hangover. Many people rob themselves of money they needed or planned to spend elsewhere when they use a debit card, experts say (CBS MarketWatch Nov 19).

Consumers easily can lose track of what they're spending with debit cards, especially if they don't get receipts, and can end up short when trying to pay rent or a car payment. Many people mistakenly assume that a debit card works like a credit card where you have 30 days to pay--you don't.

To avoid digging yourself deeper in debt this holiday season, financial experts advise:

• Make a list or holiday spending plan and stick to it;
• Ask for receipts, especially for debit-card transactions;
• Balance your share draft account/checkbook after each purchase;
• Set a spending limit and once you hit that limit, go home;
• Slow down the shopping trips and shop in increments; and
• Consider opening a holiday club account at your credit union for next year to avoid overspending with debit cards in the future.