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morpheus0327

'Debitize' - smart way of paying CC every month

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Found an interesting service that pays off your CC bill monthly.

 

https://debitize.com

 

Link CC's and bank accounts. Every time you make a CC purchase, they will withdraw that amount from your bank. At the end of the statement, i.e. towards the payment date, they will pay the entire balance for you.

 

Perhaps useful if you have tons of cards... It's free.

 

(I don't work for them :-)).

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The spreadsheet I use to keep track of our household checking account would be a nightmare with all of those individual withdrawals.

 

Also ,this service completely obliterates the benefit of the float.

 

All of this in exchange for no benefit, greater or otherwise.

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I used this service last month, just for testing. Used it only for one card.

Turned out - it was quite useful.

 

I would recommend it to someone who is inculcating habit of paying off at least one card every month.

Or, for someone, overwhelmed with many cards, wishing to organize their paying even better.

 

Of course, this service may not be useful for pros, but it does save some chaos for starters.

 

It's free... so nothing much to lose.

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I'm a fan too for people who will use debit cards and not credit cards, either because worried they will get in over their heads or because they've heard a certain popular financial guru tell them not to use credit cards.

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The spreadsheet I use to keep track of our household checking account would be a nightmare with all of those individual withdrawals.

 

Also ,this service completely obliterates the benefit of the float.

 

All of this in exchange for no benefit, greater or otherwise.

Good point. And as I think about it seems as if the app turns your credit card into a debit card lol. if your credit card lacks a point/reward system then theres little reason to quickly charge then quickly payoff the card; unless your looking to show the credit card company you deserve a bigger limit? Further, if you didn't have funds to pay debit at the beginning of the day you probably wont by the end (when they withdrawal from your account). I thought credit was to be used for times when you could pay debit/cash or when you just didn't want to?

 

I would hope they would allow for a feature to adjust the date of withdrawals,you know... to save the float.

 

But the app does have a nice interface..kudos for that

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Great business model for Debitize - they've figured out how to profit on what would otherwise by your free float period. I'm not clear on the benefit to the customer. Yes, they're debiting your bank account - but to know where you are in your spending, you'd have to monitor your bank account daily -- unless part of the service is that Debitize is authorized to call your CC provider and ask them to freeze your account when you've hit empty in your bank account.

 

Why not just monitor your CC account, and keep your money in your pocket until it's actually due? Even better - chose a CC that lets you set spending limits, and give yourself a cap if you have a problem managing your spending.

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Great business model for Debitize - they've figured out how to profit on what would otherwise by your free float period. I'm not clear on the benefit to the customer. Yes, they're debiting your bank account - but to know where you are in your spending, you'd have to monitor your bank account daily -- unless part of the service is that Debitize is authorized to call your CC provider and ask them to freeze your account when you've hit empty in your bank account.

 

Why not just monitor your CC account, and keep your money in your pocket until it's actually due? Even better - chose a CC that lets you set spending limits, and give yourself a cap if you have a problem managing your spending.

I used their free service for a month. They keep track of both your bank account as well as CC spendings. On the online interface, the user (customer) can set up a threshold dollar amount, say $200, of their bank account, beyond which Debitize won't withdraw any funds. They send alerts each time a withdrawal is made. Good customer service too.

 

I guess its good for starters who are not used to looking at their bank accounts / spendings daily. May also get chaotic if you have tons of cards, which you yourself would be comfortable managing instead.

 

In the premium version, which is meant for CC's with balances, they routinely withdraw excess funds than present month spendings to payoff a balance. Perhaps implemented a simple optimization problem, so that the user may not have to make those calculations.

 

Not too much help for people managing their finances well.

 

They get access to your bank account too, so... one needs to be mindful of security.

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