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Facebook Messenger Allows Us To Send Money To Friends

Facebook Messenger Allows Us To Send Money To Friends

Facebook Messenger has quickly become the most downloaded app in the Apple Store. The announcement that Facebook Messenger will now allow its users to send money to friends has made it clear why the number one social media company had been pushing its users to download the Messenger app since the middle of 2014.

Sending Money Through Facebook Messenger

Many proponents of the new feature cite a number of beneficial aspects of this new addition:

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  • Allowing users to send money to their families for a small fee.
  • Money will be sent through debit cards. Senders will not have to make their bank account information known to receivers.
  • Use of a PIN or Apple’s fingerprint ID provides an extra layer of security to protect Facebook users’ accounts and debit card information

Downsides of the New Feature

Still, others remain wary of the possible negative effects the new Messenger feature could have. Most Facebook users don’t take kindly to changes on the site, especially when dealing with money.

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Facebook users may worry that since their debit card information will be saved onto their Facebook account, a compromised account may lead to much bigger problems.

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Finally, many Facebook users are skeptical of the company’s intentions: Will advertisements just become more prevalent on our News Feed? Will it become easier to get duped into buying a product with the click of a button?

Obviously, the idea of sending money through applications or electronic messaging systems is not a new idea. However, PayPal president David Marcus was hired last June to oversee the messaging system of Facebook. Combining his knowledge of electronic payments and money transfers with Mark Zuckerberg’s innovative perspective on the future of social media could bring Facebook Messenger to the forefront of e-commerce in the years to come.

Featured photo credit: Pixabay via pixabay.com

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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