A Better Way to Manage Your Everyday Money - Book - Page 65
Lois and I have overdraft protection on our checking account with a $2,500 line of credit (LOC).
We pay an annual fee of $50 regardless of whether or not we use the LOC. This annual,
automatic deduction is a bill in our Cashflow spreadsheet.
The added advantage of having the line of credit is that we can give ourselves a loan whenever
the need arises simply by logging onto the bank’s website and transferring the money from our
LOC to our checking account.
Debit cards
A debit card lets you spend money from your checking account
without writing a paper check. When you pay with a debit card, the
money comes out of your checking account immediately. There is
no bill to pay later.
With a credit card it's easy to purchase anything you want, even if
you don't have the funds. With debit cards, you avoid spending
more money than you have. However, with a debit card, it’s easy to
55
