It belongs in that top spot, I use it all the time. I have never made a point to carry cash, and am amazed if I find myself in possession of a single or five-dollar bill. Usually I only take out cash to get quarters for laundry or to pay my roommate for utility bills.
When I heard that my bank, Bank of America, will be charging a $5 monthly fee for consumers who use their debit card, I understood the rationale. As part of the Durbin Amendment that was passed over a year ago, the federal government implemented a cap on fees that banks can charge merchants who accept debit card transactions; in turn, some banks have decided to recoup those dollars by charging consumers directly. Bank of America is now rethinking how it implements the fee, but the prospect of paying for debit card use is still looming in the distance.
I wonder, though, can I avoid this fee? I’ve decided to try to go the entire month of November without using my debit card, to see if quitting the debit-card habit is possible. To start my experiment, I made a list of things that I routinely use my debit card for:
- Groceries – at the store and the biweekly delivery of Boston Organics (for which payment is automatically processed on my debit card)
- Household items from CVS or Walgreens
- Car expenses like gas and oil changes
- Coffee, and sometimes lunch in the middle of the work day
- N-Star bill, which I pay online using my debit card
- Refilling my T-pass
- Clothes/books/trinkets that I buy on a whim – although not often, it happens occasionally. For example, last week I went to Boomerang’s, a second-hand store in Jamaica Plain, and bought a book, a shot glass and a wine glass for $1.50. I didn’t have any cash and felt like a fool for using my debit card.
A $5 monthly fee equals $60 a year, which in my book is no chump change. Like many people, I live paycheck to paycheck (that is, when I’m working a paid internship), or rely on student loans as funds for an entire semester. Shopping has never been a hobby of mine, and when I buy things I tend to stick with low-cost versions of whatever I need (Payless shoes, generic cold medicines and cereal brands, $1 shampoos and conditioners, etc.).
Considering my already frugal personality, I am hoping this transition to a cash-only lifestyle won’t be too far of a leap. It does mean that I’ll have to plan out my purchases somewhat in advance instead of waiting to reach the cashier to find out the total. I expect a few inconveniences for when I’m short a dollar or don’t have time to stop at an ATM, but since I’m going “old-school” anyway, I’ll just have to carry around my checkbook.
Just Hang Up! posted on Jan 19
Americans carry a considerable amount of credit card debt. According to NerdWallet, the average U.S. household debt is nearly $16,000, while the average interest rate is 13 percent. Unfortunately, consumers who struggle to get out from under their credit card debt often fall victim to …Continue Reading Just Hang Up!
Child Identity Theft posted on Jan 17
When most people think of identity theft fraudulent credit card purchases and stolen drivers licenses typically come to mind. Child identity theft, though, is quickly growing and can be dangerous and damaging long-term. According to a 2011 report from Carnegie Mellon, 10 percent of …Continue Reading Child Identity Theft
Coming to a Channel Near You: NBC Boston posted on Jan 10
Do you like to watch The Tonight Show Starring Jimmy Fallon or Sunday Night Football? NBC’s contract with WHDH-TV (also known as Channel 7) expired at the end of 2016. For many viewers this change had no impact on their television watching. But for viewers …Continue Reading Coming to a Channel Near You: NBC Boston