Cashback credit cards vs debit cards


I currently use a mix of cards for my day to day spending, but primarily a cashback credit card. However, I can sometimes go through phases of overspending and not thinking about the consequences.

I use YNAB, though I still struggle to stick to a budget. I’m thinking using a debit card would encourage me to make better spending choices and I think the reduction in impulse purchases is likely to outweigh the cashback I would get.

I was just wondering if anyone had made a similar decision to move away from credit cards altogether?

Thanks :blush:



Chase offers 1% cashback for 12 months on opening, can also set a monthly budget so it’ll tell you when you’ve reached your peak (unsure if tells you on every transaction over your budget).

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I opened a Chase account earlier this year, so I have it ready to go!

I’ve used it a bit, but the temptation of using a credit card and not worrying about the consequences gets me sometimes!

I’ve experimented with this in the past and I’m certainly convinced I spend slightly more when using credit cards.

However it isn’t a massive difference and I’ve concluded this spending buys happiness equal to the amount of extra spending, so I’ll continue for now.


Have you tried paying your credit card bill from a pot and updating your pot balance to match your credit card balance every few days?

That way your bank account balance is a more accurate reflection of what you actually have available.


I haven’t tried that, I really like that idea.

Though I have to confess, I don’t actually have a Monzo account at the moment. :astonished: So this is another incentive to open one!


The majority of my spend is on my Chase debit card.

I have Halifax Clarity connected to McDonalds app so that that account does not become dormant between use abroad, pay a tenner into a Monzo pot each month, and pay the DD from that. Never spent more than a tenner a month at McDonalds as it’s mainly a 99p coffee.

Prior to Chase, most my spend was on my Monzo debit card. I just found knowing my live balance easier than faffing with credit cards for the cashback. That said, the £72 cashback accrued with Chase since September will not be sniffed at :smile:

Credit cards, for me, are for major purchases. For that I use Barclaycard.


I don’t trust myself to use a credit card, pay it all off and start again. I’ll spend too much, not pay it all off and then the debt builds.


Always paid mine in full each month. Never paid interest in near four decades of holding them.


I use my Amex but I only ever spend what I would have had it been a debit card. So I can always afford to pay it in full.

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My Amex nowadays only comes out for their offers.

I am currently 80p in credit courtesy of 5% cashback from Avanti West Coast.

Funny how that offer wasn’t around when my fare was considerably more than the £16 for that May trip to London :rofl:


I want the air miles as I use them pretty much monthly so it works out for me. Anything else goes through Chase for 1% cashback.

But in terms of budgeting, if you see your credit card as spending from your bank account then you can’t spend more than you actually have.


Alas many do not.

I used to do all my monthly spend on my credit cards. Who knows, I may do again once Chase cashback expired and my Amazon card turns into Pulse.

We shall see.


It’s definitely easier said than done.

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I think the trouble with me is I can go through phases of being really disciplined and only spending what I’ve budgeted for, but other times I am not.

It’s those times where I don’t think about the consequences and just grab the credit card that I need to somehow control. I wonder if a starting point would be to reduce the amount of cards I have perhaps too.


I think with the CC for monthly spending there’s always going to be the odd £10 purchase that you make a little more flippantly/towards the end of the month - but perhaps that’s just me?

I only tried it for one month.

Also, the UI/Analytics on Credit Card apps aren’t as good as what’s out there for Debit.


That’s where an aggregator app or open banking shines.

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Agreed they’re not which is a shame.

I use cashback credit cards and have done for years now. I generally put the money aside as I’m going along and have a direct debit setup to pay them in full.

I probably wouldn’t do it if there wasn’t cash back

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True - but I like the UI of the current accounts I use so much that I don’t think even an aggregator would stack up!

Wouldn’t Monzo work then? Like using Trends? Emma is quite a UI friendly app too.