Dave Ramsey

#77
#77
Obsessed said:
My thoughts exactly
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I use my credit card for large purchases because I know I can pay it of with my next check, and cash is a more important commodity than credit.

I have plenty of credit, but not everything can be purchased using that. So I use credit when I can in order to preserve my cash from paycheck to paycheck.
 
#78
#78
Vol8188 said:
I use my credit card for large purchases because I know I can pay it of with my next check, and cash is a more important commodity than credit.

I have plenty of credit, but not everything can be purchased using that. So I use credit when I can in order to preserve my cash from paycheck to paycheck.
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I understand that and can appreciate that as well. But I still don't understand why not to use debit card.

Honestly I use a credit card for large purchases for the points, that are later redeemed for hotels and flights.

But that's just my preference.
 
#79
#79
SDV said:
Why
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You can pay it off next billing cycle and not pay interest. Say you purchased 20k item on a debit card, you just missed 30 days of interest on 20k by paying cash now. Plus, if you have
a cash back or airline miles program, you miss out on a flight that could be worth $1000 or so round trip.
 
#80
#80
Also, you get consumer protections with a credit card that you don't get with a debit card. Plus, I don't ever want anybody directly accessing my bank account. If you've got a decent rebate card like Sparty is talking about, you've got the money to pay for the item, and you've got the self control of an adult to pay the bill when it comes due, I can't think of a good reason not to use the credit card.
 
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#81
#81
Spartacavolus said:
You can pay it off next billing cycle and not pay interest. Say you purchased 20k item on a debit card, you just missed 30 days of interest on 20k by paying cash now. Plus, if you have
a cash back or airline miles program, you miss out on a flight that could be worth $1000 or so round trip.
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That's the thing. Most people cannot pay it off the next billing cycle. His philosophy is to save for things you want, not instant gratification. And if people think they are winning on miles, they are dead wrong. The credit card companies are raking in the money on interest payments.
 
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#82
#82
SDV said:
That's the thing. Most people cannot pay it off the next billing cycle. His philosophy is to save for things you want, not instant gratification. And if people think they are winning on miles, they are dead wrong. The credit card companies are raking in the money on interest payments.
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But what if you are winning? I get about 12.50 every two months from Bank of America for my points (which is why I try to put all my bills in that card). As long as I continue to pay my previous statement balance in full, am I not winning?
 
#83
#83
Credit cards are the way to go. Other than my mortgage, almost every purchase I make is with my credit card. And I pay it off every month, no interest. The rewards are great.
 
#84
#84
allvol123 said:
Credit cards are the way to go. Other than my mortgage, almost every purchase I make is with my credit card. And I pay it off every month, no interest. The rewards are great.
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If I could get the bank to accept credit for my mortgage it would be on there too.
 
#85
#85
SDV said:
That's the thing. Most people cannot pay it off the next billing cycle. His philosophy is to save for things you want, not instant gratification. And if people think they are winning on miles, they are dead wrong. The credit card companies are raking in the money on interest payments.
Click to expand...

People who are paying their balance off every month are absolutely winning with the miles. Also, if you are using your checking account to pay off what you've charged over the previous month, you've effectively saved for the things you want anyway.

Still, all that hinges, as GA said, on having the self control to pay the full balance at the end of each month. Obviously a huge majority of folks who have found themselves in financial hot water and are turning to Ramsey for advice don't have that level of self-control, so I can understand why he advises people that way.
 
#86
#86
Vol8188 said:
But what if you are winning? I get about 12.50 every two months from Bank of America for my points (which is why I try to put all my bills in that card). As long as I continue to pay my previous statement balance in full, am I not winning?
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That's the operative phrase. And what are you doing with all that money you get every 2 months? :)
 
#87
#87
Vol8188 said:
If I could get the bank to accept credit for my mortgage it would be on there too.
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We agree. I get aggravated with any money I spend that isn't spent via my credit card.

I also change cards often and get a new card. You get great rewards with being a new customer.
 
#88
#88
bleedorange0037 said:
Still, all that hinges, as GA said, on having the self control to pay the full balance at the end of each month. Obviously a huge majority of folks who have found themselves in financial hot water and are turning to Ramsey for advice don't have that level of self-control, so I can understand why he advises people that way.
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Bingo. If you don't need it, it's not for you.
 
#90
#90
SDV said:
That's the operative phrase. And what are you doing with all that money you get every 2 months? :)
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With my SW card, I got $600 worth of home depot gift cards to redo my back deck. Guess they really got me.
 
#92
#92
allvol123 said:
With my SW card, I got $600 worth of home depot gift cards to redo my back deck. Guess they really got me.
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You also pay an annual fee to use their card. And let me guess, you also didn't pay any interest to them either?
 
#93
#93
SDV said:
You also pay an annual fee to use their card. And let me guess, you also didn't pay any interest to them either?
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Never paid interest, never.

And yea, like a 75 dollar fee I think. So, 600 minus 75. Again, they really got me.
 
#97
#97
allvol123 said:
Never paid interest, never.

And yea, like a 75 dollar fee I think. So, 600 minus 75. Again, they really got me.
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Exactly. I used to be someone who hated the sound of credit cards and credit, but it used properly can be used just like cash, as long as your budget allows it.
 
#98
#98
SDV said:
SW card does
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Again, paying less than $100 a year for access to say a $5,000 limit, if needed, can be the difference in being stranded somewhere if you were to need a major car repair. Credit can be used responsibly, as long as the person using it is responsible and not buying useless junk with it.
 
#100
#100
Vol8188 said:
My Bank of America card doesn't.
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I have a B of A that doesn't as well.

As previously stated, most people don't pay off their cards right away. There is a reason that most people use credit cards, because they don't have money in the bank to pay for it. That is how the credit card companies make their money.

I have credit cards, but have chosen to no longer use them because I like the feeling of paying cash for something and not owing money to anyone.
 
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