@Open123 wrote:
@unc0mm0n1 wrote:While a CC and a prepaid are essentially the same thing, I can see the psychological difference. For many people, keeping extra money is hard. That's why many people love getting a refund. Even though it's their money, if they had access to it throughout the year they'd spend it. With a CC you know you have to pay it back so you control yourself. Whereas with a prepaid visa technically its your cash. People are more apt to spend money in hand.
I see.
So, what you’re positing here is that there exist a segment of people who are contrary to the empirical studies, which suggest people spend more money with credit cards? Furthermore, if these people were to take the advice of Dave Ramsey and his ilk, disaster will follow because using debit cards and one’s own money in the bank will only lead them to spend more?
And, that moreover, with “these” people, the ideal and best way to practice spending disciple is to abstain from all cash and debit cards, relying exclusively on credit cards, because the singular notion that whatever is charged has to be repaid will keep their spending in check?
Then, I agree. Time-shifting spend for a sign-up bonus could prove deleterious to these folks.
Huh, like you I don't know if there's a difference.
I would think a prepaid card to be similar to a debit card from my own viewpoint; however, I do know personally that if I feel I've already "spent" the money, I'm more likely to use whatever it was that was purchased, sunk cost argument, sort of. Not sure, this is so far outside of my own personal perspective it's hard for me to rationalize.
