"Redeeming" Credit

[David Merrill]

I can see how the prepaid debit card can become a full-time distraction. However, I have a bank account, which will soon be holding only lawful money, and the debit card draws directly against that account. So, no FRN's, no debt obligations involved. The FRN's were redeemed before the account was funded. I also have a credit card with the same bank. I will try to get the bank to consider part of the deposited lawful money as funding the credit card, ie it becomes a defacto debit card. The difference is that many vendors will not take a debit card. I note the other commenters here concerned that use of a credit card assumes Federal Reserve credit, and that the IRS might want to come after the tax on its use. So far, IRCode identifies income, and sets the amount of tax on the amount of income. Use of a credit card cannot be construed as income under present IRS policy (could that change? - hell, yea), particularly if you pay it off in full when billed, as you will note that while the 'credit' begins with the date of purchase, charging you for the credit used does not begin until you establish an unpaid balance, ie, use is free if paid off in full when billed.

You sound very informed.

You present some "facts" though, that I am unsure about.

I am unaware that venders will not accept debit cards. Don't you run a debit card like a credit card? It seems that a debit card is an immediate guaranteed transfer of funds.

Also when you give billing information you indict yourself. So the credit card is the situation where you must provide the billing information, not the debit card. I went through a drama with T-Mobile (keyword for a search around here) and revealed by deduction how they wanted Information and finally relented to getting none. - Possibly they even came up with the Pre-Paid Plan I am now on just for me.

I sure like the way you have tied lawful money demand into the credit system!