THIS IS Why I NEVER Use A Debit Card! | Minority Mindset

what's up everybody I am just petit Singh and welcome to the minority mindset we are living in a new digital age where the only people that carry around cash or dinosaurs and drug dealers and I guess the people that buy the drugs too but for most of us a credit card or a debit card is the easiest way to buy things because now you don't got to carry around a bunch of cash in a wallet that's gonna make your pants sag you can just carry around a piece of plastic although I do still use one of those fat wallets I don't know I guess I just like the old-school look for a big portion of my life I only used a debit card or cash to buy things because I thought that was the financially smart thing for me to do and now I never use a debit card to buy things ever and I try to avoid using cash and all costs see I didn't grow up learning about money I learned by reading books and then trying things and then making mistakes and then coming up with my own opinions on what's right towards the end of high school and in the beginning of college I read a bunch of money books and a few of these books talked about how credit cards are destroying people's lives financially that scared me I mean credit card debt is expensive what's on over you but I don't want to destroy my financial life so I never applied for a credit card I just caved around a bunch of cash and I had a debit card just in case and this worked great until somebody stole the cash out of my wallet from the gym locker room twice I filed a police report both times but nothing happened I probably lost a couple hundred dollars each time which sucked but at least I didn't have to worry about credit card debt because that would have sucked way more so for most of my college career I can't bind things with cash on my debit card until I was finally pushed over the edge I've been an entrepreneur for a long time and I know the business of buying things cheap and selling them for a higher price so at one point I bought thirty five hundred dollars worth like cell phone accessories that I was gonna flip and I bought this through PayPal with my debit card but I never ended up getting my products that I bought and I couldn't get ahold of the seller so I called up PayPal to see what they could do and this was years ago before they really built out their purchase protection stuff and they were like sorry we don't do purchase protection for certain things but if you call up your credit card company they will be able to reverse the transaction no problem we write a card company I don't have a credit card I use the debit card and that's when the PayPal rep said oh sorry to hear that well you can call it the debit card company to see if there's something they could do so I called up my debit card company to see if there's something we could do to get my $3,500 back and talking to them was kind of like talking to a robot before artificial intelligence was really popular sorry sir after you make a purchase with your credit card there's nothing we can do but wait there's like nothing sir sir did you not hear what I just said after you make a purchase with your debit card the money leaves your account and after the money leaves your account there's nothing we can do you could try to call an attorney or try to go after the business but there's nothing we can do we only offer this purchase protection with credit card now I was like wow so I've had my cash stolen and my debit card didn't offer any protection what do I do like I'm just trying to stay away from credit card debt this money stuff is hard but at the same time in the back of my mind I was like you know I'm cheap I know how much money I make and I know how much money I spent and I know that I spend way less than what I make and I know that I can control my spending like it might sound silly but I actually believed that if I had a credit card in my hand I would have no choice but to go out and overspend on my credit card and that I would for sure end up in a huge pile of credit card debt because if you have a credit card then you're going to end up and credit card debt like this is how but I was really getting annoyed by the issues I was having so I finally decided to take the leap and apply for a credit card I started small I went to my bank and I got a credit card with a $600 monthly limit and I've treated my credit card just like a debit card I only made the purchases that I would normally make and I paid off my credit card completely at the end of every month and shockingly I did not end up in any credit card debt slowly I increased my credit card limit and I stopped buying things with cash and then something really interesting happened I got this letter from a credit card company and it wasn't this surprise bill with all this credit card debt that I had it was a letter that told me that I had rewards that I could redeem rewards what rewards this is the chuck-e-cheese see I had this misconception that a credit card was going to be the reason that I had bad financial habits and then I blow all my money even though I knew how to be a smart spender I mean I knew how to be cheap I grew up in an Indian household I know cheap turns out it's not credit cards that destroy people it's bad financial habits that destroy people and giving somebody with bad financial habits a credit card is just fuel to fuel and fund your bad financial habits and that's when I stopped using cash and I stopped using a debit card completely because if I have to spend a thousand dollars like if I'm going to go on vacation and it's going to cost me $1,000 why would I spend this money with a debit card when I could use a credit card and get some cash back we get some perks and get purchase protection with it like okay last month I had over 30 thousand dollars worth of expenses for my business but because I used my credit card to pay for these expenses instead of my debit card I also get two percent cash back for the purchases that I would have to make anyways that's over $600 coming back into my pocket because I used a credit card instead of a debit card or checks or cash to make these transactions like I wish that I could put my payroll and my rent on my credit card too I'm simple I look for credit cards with high cashback I don't like looking for airline miles or trying to play the points game I just like the cash backs because it's simple it's generally tax free and I can use that cash however I want like you could use your cash back as an investment bonus to invest in other credit card companies if you wanted to I know that I can control my spending and I know that I'm not gonna spend money that I don't have so if I can use a credit card and get some cash back for doing that I'd be throwing away money by not using your credit card you know yourself better than I do if you think that you cannot control your spending don't use a credit card use a debit card and use cash because the perks are not enough to cover the amount of fees you're gonna pay in interest because for a lot of people they think oh I'm gonna get 2% cash back so let me go and spend 20% more than what I would normally buy don't do it please don't do that and if you want some extra tips on how to spend your money smartly I'll link a couple videos for you in the description below but if you can't control your spending and you will 100 percent of the time pay off your entire balance every single month without missing a month then might as well get some perks for making the purchases you would regularly make thank you for watching if you enjoyed the video hit that thumbs up button and share it with one friend so we can help spread the word don't miss our new videos on entrepreneurship business and money every Monday Wednesday and Friday at 7:30 a.m. Eastern Standard Time so it's the subscribe button and at the notification box below now where you actually find out what her new videos are released and as always keep hustling

Channel: Minority Mindset

Views: 612,145

Rating: 4.8644457 out of 5

Keywords: minoritymindset, minority mindset, minority123, thinkminority, jaspreet singh, i never use a debit card, debit vs credit, debit vs credit cards, debit vs cash, debit card, credit card, credit card vs debit card, is a debit card good, are credit cards bad, are credit cards worth it, credit cards 101, debit cards 101, should i use a debit card, should i use a credit card, financial education, financial literacy, get money smart, rethink rich, credit cards

Id: 6rLXNAPN6DA

Length: 8min 16sec (496 seconds)

Published: Wed Jul 03 2019