Dave Ramsey

#101
#101
Just got a Marriott rewards card.

No fee first year, spend a $1000 in first three months, I get 7 free nights at a hotel. Credit cards are evil.
 
#102
#102
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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It's not hard at all to find a no annual fee card. It's also very easy to avoid paying interest.
 
#105
#105
SDV said:
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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They don't have all those big ole buildings for nothing. You are correct
 
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#107
#107
While we're at it, I think Dave is also wrong about stopping retirement savings while paying off debt and insurance in general.
 
#110
#110
I think the biggest reason Ramsey is against the credit card (besides the debt, which can be explained away with points and such) is because it doesn't integrate very well with a zero balance budget, which is really the key of his theory. Every dollar That comes in has an assignment. Paying something with a credit card when you don't have cash on hand means that it was probably never budgeted for. Working a weekly or monthly budget is just so much easier with cash. And on my all cash weekly budget, my wife and I are saving roughly 80% more per month than we were before when we would use our credit card to get points and so forth. We never carried a payment on our card, but it made it complicated to budget, so we were missing out on all of the forced savings associated with a zero balance budget.
 
#111
#111
I have an American Express Blue Cash which I pay off each month. In essence, I'm getting paid to use the card. I put everything on it, plus it allows me to track all my spending with little effort versus cash. It works for me personally.
 
#112
#112
GAVol said:
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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Another good point. And my AMEX doubles the manufacturers warranty on everything I buy.
 
#113
#113
GAVol said:
While we're at it, I think Dave is also wrong about stopping retirement savings while paying off debt and insurance in general.
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Debt robs cash flow. Cash flow is the main ingredient to building wealth. Get out of debt as fast as possible to gain access to your cash flow as quickly as possible. Most of the people that do their "debt free scream" paid off their huge debts ($75k to $150k) in less than 3 years (I am just basing that off the stories I've heard from listening every day). In the long run, the extra 2-3 years it takes to get out of debt is well worth the cash it frees up month to month for the rest of your life.
 
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#114
#114
I know someone who worked for Ramsey, and they pretty much described him almost exactly like that article.
 
#115
#115
SamRebel35 said:
Debt robs cash flow. Cash flow is the main ingredient to building wealth. Get out of debt as fast as possible to gain access to your cash flow as quickly as possible. Most of the people that do their "debt free scream" paid off their huge debts ($75k to $150k) in less than 3 years (I am just basing that off the stories I've heard from listening every day). In the long run, the extra 2-3 years it takes to get out of debt is well worth the cash it frees up month to month for the rest of your life.
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Thanks, that makes sense. If your employer matches at some level your contribution into a 401k, it seems like you should at take it. Sounds like an interesting optimization problem involving amount of debt, interest on that debt, how quickly you can pay off debt, tax rate, age, retirement plan available, return on the retirement plan.
 
#116
#116
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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If you can pay for it with a debit card, you can pay for it with a cc and get the benefits.
Don't really agree on the miles SDV. As a family, we will use 8 plane tickets this year via
SWA. That would've cost me @ $4-5k and I didn't pay for one of them. We put everything on cc and pay it off each month gets me 2 family trips to wherever swa can get us.
 
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#117
#117
I keep seeing "Most people can't pay off the next billing cycle"; well then those people obviously don't need to be using them. But a lot of us can and do, so that's why I reject Ramsey's blanket "No Credit Card" rule.
 
#120
#120
Spartacavolus said:
If you can pay for it with a debit card, you can pay for it with a cc and get the benefits.
Don't really agree on the miles SDV. As a family, we will use 8 plane tickets this year via
SWA. That would've cost me @ $4-5k and I didn't pay for one of them. We put everything on cc and pay it off each month gets me 2 family trips to wherever swa can get us.
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Not everyone is loaded like you
 
#121
#121
SDV said:
Not everyone is loaded like you
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I'm not loaded, Mr I just moved back to Whales Vagina, Ca. I paid off cc debt each month when I was making 18k a year.
Tell you what else, I used cc transfer checks to help me get thru my startup. 15k at a time. They charged me 3% transaction fee and I had a year of no interest. I paid it off before the year and only had to pay $450 to use their 15k for a year. I don't know that I could get a loan so easily and have such little expense, even if the bank wouldve given me $
 
#122
#122
Spartacavolus said:
I'm not loaded, Mr I just moved back to Whales Vagina, Ca. I paid off cc debt each month when I was making 18k a year.
Tell you what else, I used cc transfer checks to help me get thru my startup. 15k at a time. They charged me 3% transaction fee and I had a year of no interest. I paid it off before the year and only had to pay $450 to use their 15k for a year. I don't know that I could get a loan so easily and have such little expense, even if the bank wouldve given me $
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I'm just teasing you. Sounds like you had a good plan and it worked out for you. Most people can't pay off their cc's every month though
 
#123
#123
Spartacavolus said:
I'm not loaded, Mr I just moved back to Whales Vagina, Ca. I paid off cc debt each month when I was making 18k a year.
Tell you what else, I used cc transfer checks to help me get thru my startup. 15k at a time. They charged me 3% transaction fee and I had a year of no interest. I paid it off before the year and only had to pay $450 to use their 15k for a year. I don't know that I could get a loan so easily and have such little expense, even if the bank wouldve given me $
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CC have there place, but 98% of the population doesn't operate that way. These cc company's wouldn't exist if so. They don't make money that way. I find that is what SDV is saying.

Edit to add: 15k on a cc is a huge risk. Very huge. I'm surprised they didn't call and ask for financials.
 
#124
#124
Obsessed said:
CC have there place, but 98% of the population doesn't operate that way. These cc company's wouldn't exist if so. They don't make money that way. I find that is what SDV is saying.

Edit to add: 15k on a cc is a huge risk. Very huge. I'm surprised they didn't call and ask for financials.
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I realize all that but that's the individual and not the card. I have 4 cc's now with 25k maximum and have to make large purchases often for business. I don't recall an issue other than verification of charges.
 
#125
#125
Spartacavolus said:
I realize all that but that's the individual and not the card. I have 4 cc's now with 25k maximum and have to make large purchases often for business. I don't recall an issue other than verification of charges.
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Good for you, American Express would call to verify mine sometimes.

OT but what's your line if work?
 
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