I do not use credit cards. I do not travel very often, and when I do, I usually just drive my own car. But, what if I wanted to use a car rental service? Could I do so using a debit (check) card?

Here is a list of many major car rental agencies and their debit card policies. Please click on the link associated with each company to read more about their policy. This information is provided in summary form and you should conduct your own research before using any of the companies listed.

Hertz: The Hertz FAQs state:

Q: Can I use my Debit Card or Bank Card to reserve a Hertz car?
A: At most Hertz locations, debit cards (sometimes called check cards) issued under a VISA or Mastercard logo which draw funds directly from the cardholder’s account may be used to qualify for rental. However, prepaid or stored value cards which have a VISA or Mastercard logo are not accepted to qualify for rental. Debit cards must have available funds for the estimated amount of the rental charges plus a reasonable amount to cover any incidental charges in order to secure the rental. Both debit cards and prepaid or stored value cards issued under a VISA or Mastercard logo may be used as a form of payment when you return the vehicle. Please contact your local Hertz Reservations Office if you have a question about whether Hertz will accept a certain card.

Enterprise: The Enterprise website states:

Question
Can I use my debit card to rent the car?
Answer
Some of our Enterprise locations will accept a debit card for the rental deposits and payments. Please contact the office you plan to rent from to determine their policies on renting with a debit card.

Question
What forms of payment does Enterprise accept?
Answer
A major credit card in the renter’s name is required for a deposit on all rentals. When the rental is returned, traveler’s checks, debit card, or a major credit card can be accepted to pay for the rental.

Avis: The Avis Website states:

Debit Card Policies

Avis reserves the right, in its sole discretion, to seek a Debit Card authorization hold in excess of the estimated rental charges. When using a debit card at Avis there may be a minimum hold of $500 and a maximum hold of the estimated rental charges will be placed on your account.
Upon returning the vehicle, Avis will process a release of the unused portion of the hold subject to your Bank’s procedures. The hold may take up to 2 weeks to be released by your bank.

Budget: The Budget website states:

If you’re using a debit card at a location that accepts them, we’ll require a hold of total estimated charges plus 25% or $300, whichever is greater. However, for insurance/service replacement rentals and tour rentals, the minimum debit card authorization hold is $100. At select locations in the Northeast and North Central regions, the minimum authorization hold is $500. Renters under 25 years of age may not use a debit card.

At some locations, debit and pre-paid charge cards are not accepted at time of rental but are accepted for payment at time of car return.

National: The National website states:

Debit Cards

When renting in the U.S., debit and check cards may only be used in conjunction with proof of a round trip travel ticket (airline, cruise ship or train) at time of rental.

Summary:
Almost every major rental car agency WILL allow you to reserve a car using a debit card. Most, however, will place a “hold” on your debit card in the amount of the full rental price plus, in some cases, a pretty healthy deposit percentage. Some rental agencies do not accept debit cards for reservation or have very strict policies. As for PAYMENT, however, almost ALL of the companies WILL accept a debit card as a method of payment when you RETURN the automobile. So, for now, perhaps the best way to rent a car is to either:
A) Reserve the car with a company that allows you to use a debit card. If yo do this, be sure that you have sufficient money in the bank to cover the entire rental fee and a rental ‘hold’ that the rental agency will no doubt place on your card.
B) RESERVE the car using your credit card and PAY for the car rental using cash or your debit card. (As I’ve stated before, I did not cut up my credit cards, and I carry one with me wherever I go. If pressed, for the safety and security of my family, I would use a credit card to reserve a rental car and pay cash whenever I returned the car.)

Again, before you use one of the above mentioned rental agencies, please research their current policies. Also, while I was compiling this information, I did not take into account ANY insurance-related policies. Please do your own research before you rent a car. An informed consumer is a powerful consumer!

Filed under: Debit Cards, Money Management, Resources
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I was talking to a friend the other day, and he asked me, “What’s the big deal about being debt-free?”. Here is a summary of my answer:

I do not have to worry about late-fees, penalties, interest charges, lost payments, universal default, or other “debt-related” issues. Instead of worrying about how to pay for items I purchased in the past, I am free to plan for the purchases that I am going to make in the future.

If something where to “happen” to me, my wife would be free from the pressure of debt. Instead, she would be able to focus all of her attention on taking care of our kids and herself.

Interest rate fluctuations work for me and not against me. If interest rates, which are currently at all-time lows, begin to creep upward, I have no worries. Why? Because, those higher rates will be working for me, in my savings account, instead of against me, in a credit account.

I have a great job, working with and for great people. I no longer work simply for a “paycheck” but I work because I am doing a job that I love.

I can fully fund my emergency fund, retirement accounts, and college savings accounts. In the past, a good portion of my income was dedicated to debt repayment. Now, that same portion (and more) is divided into my various savings accounts.

I have clearer understanding of the difference between a beneficial purchase and a silly purchase. When I was in debt, and not focused on my financial future, I would “reward” myself by purchasing a “toy”. Now, I reward myself by sending an extra $500 to my Roth IRA.

I enjoy helping other people. Living without debt ‘frees up’ more income for helping others.

I have decided to live without borrowing money. This FORCES me to be ‘intentional’ with my money. I must live on a budget, I must plan for my future, I must balance my checkbook, I must think about major purchase, I must be in control.

Living without debt (and not tapping into available credit) can be challenging, especially when you consider ALL of the major purchases that we make in our lifetimes. Cars, houses, furniture… these things cost a LOT of money. I am (TRUST ME) well aware that it will take some very, very diligent planning to live without EVER borrowing money. But, that is my goal, and that is my plan. Will I succeed? I hope. So far, I’m 15 months ‘in” and things are going well.

Filed under: Debt Story
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Welcome to the Festival of Frugality, a collection of personal finance posts about frugal living, saving money, and living on a budget.  (Click here for the Festival of Frugality homepage.)

Saving Money In The Home:

Clever Dude writes about a 3-wheeled lawnmower and how to repair an old lawnmower. This is a great, great post!

Not Made Of Money with a post about cleaning out your pantry.

The Simple Dollar with several ideas for what to do if you decide to ditch the TV.

How I Save Money writes about how to save money on your electricity bill.

Frugal Upstate with a great post about “batch cooking” and beef. A must read!

Money, Matter, and More Musings with a great tip about cooking oil and an old lock.

Bean Sprouts with an interesting post about propagators.

Financial Planning:

Campus Grotto with some ideas about how to get a college scholarship.

Getting Finances done writes an interesting article about applying GTD principles to personal finance.

Coupons and Deals:

BasenjiMom with a post about coupons and pet food.

Lazy Man and Money writes a post about giving wine as an inexpensive gift idea.

Free Money Finance writes about saving money when buying clothes.

Queercents with a post about saving money on college textbooks.

Cash Money Life reminds us to look at our receipts for coupons!

Money For The Rest Of Us writes about 5 online shopping tools.

Hustler Money Blog gives a resource for reducing medical costs.

Plonkee Money with ideas for saving money while in London.

Penny Pinching with several ideas for saving money on groceries.

Frugal Philosophy:

Frugal Babe writes about selling her engagement ring. This is a POWERFUL POST. Great job!

My Two Dollars with a great post about how to “make” a million dollars.

Grad Money Matters writes an awesome post about the “why” of being frugal.

Mapgirl’s Fiscal Challenge asks the age-old question, “Repair or Reuse?”.

A Frugal Living Blog By A Frugal Guy discusses being poor or being broke.

Living Almost Large is addicted to CVS?

Escape Brooklyn discusses the Buy or Rent question.

Never Again Debt writes about found money and the role of the “Divine” in our finances.

Cents You Asked with a thoughtful question. If you lose your job, what expenses should you cut first?

Money And Such with questions, questions, questions that you should be asking yourself.

Active Duty Military has a post about ten financial commandments.

Frugal Zeitgeist writes about dealing with the pressure of up-selling.

Comedy:

Art of Slacking writes an article about… well, just go read the article.

I want to thank all of the bloggers who submitted articles. There were two articles which I left out of this week’s festival, due to the fact that they appeared to be associated with credit companies.

Filed under: Frugality, This Week's Carnivals
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My blogging pal, JD, from Get Rich Slowly has reopened the Get Rich Slowly forums. If you decide to join in and discuss personal finance, go to the Get Rich Slowly homepage and look for a dark-green, four-digit number. You will need this number when you click over to the forums to register. (The number is located on the right-hand side of the homepage, just under the search bar.)  JD is a prolific blogger and has always been a good friend to me and my blog.

Filed under: Noted
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All of my brokerage accounts have “built it” portfolio trackers which track stocks and ETFs in “real time”. But, I use two, free, online portfolio trackers to keep up with my portfolios throughout the day.

Google Finance provides stock quotes, business news, and offers portfolio tracking. Setting up a new portfolio takes just a few minutes, and as with most Google products, the interface is easy to use, uncluttered interface. One quirk: One of my funds does not report correctly. Hopefully, in the future, this will be corrected.

Yahoo Finance provides stock quotes, business news, offers portfolio tracking, investing news, personal finance columns, and financial opinions. Setting up a new portfolio takes a few more minutes with Yahoo, and the interface is rather “cluttered”. Frankly, Yahoo should take a page (or several pages) out of Google’s handbook and clean up their interface. But, I will admit, the depth of information provided by Yahoo is unsurpassed.

For those of you new to investing, like me, there are literally THOUSANDS of investing tools. Quite frankly, the massive amount of sites can be daunting, especially for a novice. Hopefully, as time goes by, I’ll learn more and more about investing.

Definition of the Day

According to Investopedia, a portfolio is: The group of assets - such as stocks, bonds and mutuals - held by an investor.

Filed under: Resources, Retirement
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