The timing of a theft — like right before a bill payment is due — could create some serious financial damage. With so many Americans living paycheck to paycheck, that’s a real possibility.
“A bad guy who gets a hold of a debit card can access real money from a real account,” Schulz said. “If you’re missing $500 for two days, it can cause some real hardships if you have bills due at that time.”
Millennials’ preference for debit over credit could stem from a fear of taking on more debt. As millennials build their financial lives and pay down or retire outstanding student debt, they’ll likely embrace credit more, Schulz said.
“Part of people trusting cash is that there’s no technology involved and it’s a little simpler. People also need to realize that if you lose cash, it’s gone, unlike with a credit card or a debit card,” Schulz said. “It’s an imperfect thing.”