Do you use a debit card? Seems like a good idea, right? Your bank likes it too; and that should be a warning in itself.

The problem is that the bank wants to make money from its association with you. If it can squeeze an extra $30 or $40 per month on fees, that’s fine with them.

How does this happen with a debit card? It’s because the banks will allow you to overdraw your account using the debit card. This will cause you to incur a bank charge.

But, you say, “I know my balance. How will I overdraw my account?” The answer is a “Block.”  A block is explained in section 2.3 of Bill Payer’s Guide.

If you have used a credit card, you are all right. However, if you have used a debit card, you may have $1.50 cup of coffee subject you to a bank charge of $30 to $40.

If you don’t think this is fair, use a credit card rather than a debit card.