Yes, he beat that strawman half to death! Thankfully most of what he said was just his imagination and that is the reason he couldn't provide any sources for the allegations he made.
Jos Malig-on you sound exactly like someone who’s in debt and denial congratulations they only scam people who use credit cards maybe pay off your debt before blaming others for your bad financial decisions and have a great day!
If my future son ever comes to me and says "dad, I got a credit card" I would HIGH-FIVE him because I guarantee you that I will raise my kid to actually be good with money unlike most of Dave's followers. And before he is even old enough to have a credit card in his own name, I will add him as an authorized user to my card so he'll have a MAJOR jump in the game. Trust me, my son will know to: pay the balance in full before its due to avoid interest, never overspend, and save up those points and cashback for a 100% free vacation. Because unlike Dave's followers, personally I've never overspent and I never paid interest in years since I opened my first card.
Net worth of $4? I think you're overestimating. I'm pretty sure majority of Americans net worth is in the negative due to student loans and credit card debt.
True and the world is just finding new ways to make us think we need what it offers, we can't just stay at home or at work and say you're not intrigued by something you see online/tv/social media. we'll always be tested and the slope is slippery.
8/15/20....THAT's what I do...I tear up the offer AFTER I HIGHLIGHT my name/address. Then I mail it back so the ppl GET TO PAY POSTAGE BOTH WAYS! NICE thing about C-19 + lockdown + ppl losing jobs... lots less credit card offers being sent out b/c of economy!
Dave, I took your course in 2005, cut up my credit cards and went cash only. Raising three kids, we were drowning in credit card debt. Best thing that could have happened to us. Our kids are now adults and also pay for things in cash. Amazing how much stress was relieved going cash. Thank you for your realistic voice of reason.
Credit cards are like🔪 use them the wrong way ...and you will get cut. Plastic is not for the weak🧠... I always pay them off early, I am NOT..going to pay interest ever.
@amgooder, I said the same thing about my credit cards--pay off total balance each month, no interest to pay--UNTIL I hit an unexpected financial snag and lost most of my income. 6 1/2 years ago, I hit rock bottom financially and have been climbing out of the pit ever since. After maxing out my credit cards just for basic necessities like rent and utilities, I had no choice but to go cash only. One of the most liberating things I have ever done was to cut up my credit cards and say, "never again!" I'm still in the process of paying off my final credit card. That day will be a weight lifted off my shoulders. We never know what can happen to turn us on our heads financially in spite of our best intentions.
Here’s my notes🤓: - 78% don’t pay a cc off a month. 22% pay it off - Avg. 12-20% more w/ cc, ie at a vending machine it’s 178% more - Reduces emotional friction; it’s a rigged game, 90% of airline miles are never redeemed - Pay w/ a debit card not a cc - Pain gives a memory, which is why people who use cash remember what’s spent - The more $ you make, the more credit card debt you have - Ramsey teaches discipline & even he falls into the trap of spending more w/ plastic
A lot easier to get reimbursed if your account gets hacked compared to debit card directly to your bank account. The credit card is a middle man hard stop to your actual bank account. You need to be disciplined to use a credit card though.
My family has paid off 20k debt in a month taking our original savings for a home and putting most of it there. What a relief this has been for my family. Finally going to be debt free by the end of the year. Never going back to this.
I personally feel cash slips through my fingers more easily, but every time I use my debit card it registers in my brain that it's directly touching my bank balance and sometimes I feel like that makes me more cautious.
Cash slips through my fingers also but cards were a bigger threat to me. I started step 2 a few months ago and it has magnified my self discipline. I utterly despise debt now and this process has changed me.
Same! Cash is like free money. I think from all my years babysitting it was always extra money to me. The amount in my bank account doesn’t change when I spend it. I’ve always budgeted since I was a teen though so I’m probably not typical in general.
I've saved hundreds of dollars thanks to the bonuses and cash back rewards plus 2% cash back on every purchase and 5% cash back on revolving categories. I pay it off in full every month and only use it on stuff I would have payed cash/debit card anyways.. it's called having discipline and common sense.. it's not that hard. Edit: Thanks Graham
You know why the yankees always win? Because the other team is busy watching the pin stripes. You know why the credit card companies always win? Because you are busy watching your points and cash back
@@alexc5369 lol not at all. The credit cards I get have a sign up bonus of $150 to $250 cash back after you spend $500-$1000 in the first 3 months on the card. I use them on things I have to/normally buy anyways but I pay them off in full and collect the cash back and have never paid a dime in interest.. the credit card companies only win against the majority of ppl that don't know how to manage money or pay their bill on time.
Sorry Dexter but I disagree. Let's say you wanted to buy a pair of shoes. You tell yourself you want to spend $100 for the new pair. You find shoes for $89.99 plus tax and let's say it comes to $110. You would justify it by saying whatever it's an extra 10 bucks more, no big deal, use your credit card. Even if you go on your phone and pay your CC off the second you leave the store, you just paid 10 bucks more than you wanted to. Even though you didn't go into debt doing so, you just spent more. Versus if you walked into the store with $100 bill to buy shoes you're not gonna spend even $105 on the new pair.
I used to be in the 78%. I'm now in the 22% and have cut our family spending 20%. We have paid off all our credit card debt and have saved 85k since March of this year.
@@ryanthepianoman27 We do make a good chunk of change but we were not disciplined with our money. We spent as much as we brought home. Once I cut spending and put us on a budget the money piled up.
When I was just out of college my great grandma on the east coast was turning 100 and i wanted to visit her. I didn't have the cash to travel so I applied for used a credit card to visit her on the east coast. She passed away a year later. To this day I do not regret using a credit card for that trip!
Well even Dave says he's guilty of it, and says he'll do it again-- for the grandbabies lol. It's more trying to minimize that stuff. Sorry 'bout your Grand...
Just paid a $21000 capital gains tax and I’m glad it was paid through direct debit. Having to drive to my local IRS office with a briefcase full of cash would have hurt like nothing else. Another great video Dave, I’ve switched to cash for almost everything and I spend so much less now. I spend a lot more time thinking about my purchases.
it's bullshit. just don't be a baby and use your credit card exactly as you use cash or debit cards. some percentage of the population might have a spending problem with credit but not everyone.
I'm a programmer. I coded something that sends me a daily budget using the banks automated notifications. When I'm over the budget, my credit card doesn't work unless I actually sign in and authorize more spending which I only do in emergencies. Every transaction sends me a text with how it affected my budget and what remains for the day. The best discipline is making your system not require discipline. So. I spend exactly what I want to as laid out in my budget. If I overspend today I can't spend tomorrow. However, his advice works for the vast majority of people and that's why he is 100% correct in this segment.
He's actually correct. I went grocery shopping today. Took 60 bucks with me. At the checkout, the total was 71 dollars. Had I had my credit card, I would've just used that. But, because I had cash, I had to put stuff back. Dave is correct, you'll overspend using plastic. Use paper.
If you.went to check out line with 71 worth of stuff with only $60 to spend then your problem is not credit card to begin with. Dave Ramsay blames credit cards because he can't directly call his sheep morons.
I'd just draw more, because the same card I use to draw from an ATM can be used to draw money in the supermarket. Also I already know approximately what I am going to spend before I get to the till.
Got a “free” round trip to Savannah, GA through Southwest CC. Paid OVER $1,500 while there for hotel and food. Used the SAME credit card to pay for it....I got a “PhD in D.U.M.B.” Just like Dave said....kicking myself to this day ! It’s a vicious cycle that CC companies have us in if we’re not smart.
Michel Houellebecq true but sadly I was part of the 78%. I had a 790 fico score in April/May. I now have a 566. I closed a 17 year old account with about $17,000 in credit. It hit hard when I realized my savings didn’t match my credit score.
It is good business. Hence the 78% they make a lot of money off. Way more than enough to cover the people that don't. Even on those people, they make a tiny bit of $ off of the fees they charge merchants. They only lose $ when someone defaults and they can't collect or someone steals a credit card and they eat the cost. However that is just standard bad debt, some call it breakage and a cost all businesses have.
They have a credit card now because they want the Apple consumers to rely on them completely and never leave the ecosystem. Like google with their phone service.
"We got Mickey Moused" 😂😂😂😂 I know many commentators say Dave is too extreme in his views on CC, but the trillion dollar cc debt shows that lots of ppl are getting mickeyed up.
Started Dave’s plan in 2018. Paid off $120,000 in debt in less than 2 years (debt free except house). Took my networth from $385,000 in 2018 to $1,435,000 this July 2024. And I’m 12 months away from a paid off house. Took a lot of sacrifice but we did it. Thanks Dave!
I had a teacher in highschool named Mr. Orgel. He has my history teacher for my senior year. He was 70 years old and told us he had like 20 something grand kids. He told us that he has seen it all. HE HAS SEEN IT ALL. He said the last 7 days of our senior year, he wasn’t going to teach the curriculum, he has going to teach life lessons. Said that credit cards or he called them “plastic fantastics” will ruin your life. He told us to never borrow money, only spend what you own.
Hi all! I sincerely appreciate this credit repair team, Five years ago I took out a car loan with Wells Fargo Dealer Services. Nothing crazy outside of the fact that my credit wasn’t the greatest and the interest was a little higher than I would’ve normally liked. I made sure GAP insurance was included, etc. After having the loan for the first year, making good payments I asked to refinance the loan to drop the interest down. I specifically requested that the loan be apples to apples minus the drop in interest. Again nothing crazy... Two years later, deer jumps out. Total’s the vehicle. Insurance covers most of the damages, but there was still $6k owed. I automatically assumed that’s ok GAP will cover and all will be good. Wrong when the loan was refinanced they never added GAP back on. I disputed until I was blue in the face... but during the dispute Wells Fargo put my account in a charge off status. At that point I told WF to take a hike and was willing to let it sit there. They continued to call to collect. I asked every time if I paid would they remove the Charge Off. Every single time they said no. So naturally I was like oh well. I’ll pay when I get around to it. So two years, after knowing that this is sitting there I finally looking to get into some investment property. After going through reviews on you tube, I quickly contacted this repair team via FIXMYCREDITDOCTOR. ORG(you can check them on goo g le) and explained this to them, within 7 working days credit score that dropped to 554 increased to 804, my loan disputed and charge off removed. I will recommend FIXMYCREDITDOCTOR .ORG to anyone who desire to do a charge off removal, credit repair, Chex system and DUI fix.
This is the only area I disagree with ya Dave. I'm very responsible with my Credit Card and what I use it for. Full balance paid off every month. Every other part of your program I think is great.
Trey2Da yes your are some of the FEW people whom of which use credit responsibly. The cigarette 🚬 was an excellent example. Not everyone dies of cigarettes 🚬 but MOST people that smoke 💨 ultimately have poor health. Most people do not use credit resources responsibly.
Yeah, but I don't buy more gasoline because I'm paying at the pump with plastic. I fill up my tank when it needs it -- whether I'm paying with cash or credit.
@@marcdonvito6485 No. Then you would go home and not do anything besides drive to and from work until you get paid next. Frugal people stay home and not drive anywhere because that spends money
The point is stick to a budget. The whole point of the envelope system is to limit spending on a category. The idea of only having $20 in your wallet is an analogy for having a budget. With plastic it is a lot easier to "dip" into other envelopes i.e. spending categories. If your card said declined because you overspent on that budget category then you would spend less. A good example is today I went and bought fruit and veg and deliberately only took $100. Guess how much the bill came to... $103.85. I said to the cashier "can I take the spinach back", to which she replied, "no $100 is fine" (we live in the country; people are very friendly and generous). Keep to a budget, use cash or a cash equivalent mentality along with a budget. You will save, guaranteed!
Many of Dave's followers are recovering from consumer debt. I'm not but still like financial talk. Those that had past cc debt have spending issues and should avoid a cc as they proved in past the have lack of impulse control.
I remember starting college in 1992 at 18y old, making about 9k year. I got my first credit card from BOA. My credit line was either 20k or 30k with an introductory rate of 0%. I thought I was special. How naive I was! It took me about 9 years to pay off that BS.
You wouldn’t go on any flights and waste money on vacation if you didn’t have the points. You spend more money on the vacation than the flights so even though you save on the flight you are still spending. It’s about behavior. If you didn’t have a credit card you would be spending less money on vacations and more on paying off debt. Statistically.
@@jerrygee941 Agreed, it's all about behavior. I'd probably still be traveling just the same as I have 0 debt and can afford to do so without the rewards. The fact that I'm leveraging reward points by utilizing a charge card that I pay in full every month is being savvy by using one card vs another. Once the behavior is in place, the rest is secondary.
@@jerrygee941 What debt? I have no CC balance carried, but I DO have rewards points, so...my CC owes ME. I have no student loans, but I have a degree, a veteran's grant, and tuition reimbursement from work. I have no vehicle loans. I have an emergency fund and other savings. I'm getting vested in a pension fund AND I put into a 401K and IRA. I have 2 jobs and I'm starting a side business. I think I can afford a simple vacation now and then.
If you limit your credit card spending to just spending you had to do anyways (like paying your rent), you can chase sign up bonuses and never go into debt or spend more than you would have otherwise. I make thousands of dollars a year by beating the system. Though I understand your data and agree with you that 80%+ worth of people can't control themselves.
I got to look into sign-up bonuses. Some offers sound really good, ngl. I can enroll in the card, charge to the specified number, and dump the card once I pay off the brief, minimum charges so to speak. It sounds savvy; it’s almost like a 10%-33% cash back opportunity, if there is no fine print
All bills have a due date. Pay off the balance in full just as you do any other bill. You can even setup auto payment for the balance if you like. If you spend less than you make, this should never be an issue.
I found this out the hard way. I noticed that when I use plastic when I go out I spend more money because you don't see it or feel the pain like you say. Now I take out a set amount that I am going to spend and that's it.
My dad has Alaska airmiles card been using it for over 20-30 years. Just pays it off at the end of the month. Every month gets free flights all over the world...
I worked in retail and cashiers + sales associates are rewarded greatly if they manage to sell a credit card for the store. They help profits for the business SO much. When I worked there, then I realized why it's so one sided in advertising. They don't help the consumer in virtually any instance. Even if you think you're the savviest person ever, credit cards are just a burden to manage and do not excel your wealth significantly even if you pay everything off, get rewards, etc. In the end it restricts you on where/what you want to buy while just adding another thing on your list to test your mental health.
I have 5 credit cards and only use 1 for most of what I purchase. In the past year I’ve opened 3 CC and received a total of $600 intro bonuses. I also get between 2-5% cash back, fraud protection, purchase protection, zero liability protection, curb aide assistance, and $0 annual fee. I auto-pay full balance every month and receive push notifications whenever I am within $100 of my budget so I can never overspend.
It doesn’t sit right with me to spend money I don’t have. It’s insane to me to the point I won’t date someone who’s in debt. It’s simple buy what you can afford or save up to the point where you can buy it twice. You don’t need the most expensive car or whatever
Ludens you can have the money and use a credit card. I don’t buy anything if I don’t have the money but I use a credit card. I have no debt and excellent credit. I use my credit card like a debit card but I get extra benefits from it.
Dating someone who's in debt sounds like a disaster. Dating someone who's in debt and they don't know how much is a catastrophe. Dating someone who's in debt, who doesn't know how much, and who doesn't have a plan sounds apocalyptic. I would NEVER date someone who is in debt. Period.
I use credit cards and don't pay interest nor do I spend more to chase points or cashback. I use a credit card for purchases I was going to make anyway, and already have the $ for in my checking account to pay off the balance in full.
I used my debit card and to activate the pain centres I wrote down every dime I spent. Also, I had a budget. It worked great, I learned to really think about every purchase and what I need vs what I just want.
I don't need to write it down, because I get a notification after each transaction, although I do put it into a spreadsheet, so I can run my total against my bank's at the end of each month.
@Sober Gnostic It wasn't bad at all. I was just learning behavior by utilizing my senses. It was a grounding experience. I don't do it anymore because the lesson is learned and I benefit from it every day.
I really like the overall philosophy that he preaches. His big emphasis is live within your means and pay attention to what you spend. The only issue I have is Dave has a “one size fits all” philosophy. I wish he would acknowledge that there is more than one way to manage money. A disciplined person will do fine with money and with other life decisions.
95% of the people who this show caters to have no financial discipline. If someone knows there are other ways to achieve financial freedom, they do not need to hear Dave Ramsey say it. This is his show and his personal philosophy.
I agree so much I thought this comment was by me as I read 5 words in haha. I use a credit card to buy online. I record each purchase in a spreadsheet. I pay off the balance using the money I would have withdrawn for the purhase. I use a separate credit card purely for my work expenses. Credit card work. But I do understand that Dave is preaching to those that aren't good with money, so from that perspective they are dangerous. I once racked up credit card debt when my bank gave me one as a student - they must have made a load out of me! EDIT: I continued to listen to Dave and I think he's right lol. It's the pain thing. Even when I use my credit card and register the payment on my spreadsheet, it doesn't cause any pain in my bank account. Hmmmm. I need to rethink this I think!
He's 100% right in the long run. Doesn't matter about your bonuses or points. If you keep too many cards and make a lot you're going to be tempted to overspend. Admit it.
Not me at all. No other debt except mortgage and pay off credit cards every single month for the past 10 years now. And take $3000 worth of airline miles a year.....I can give a flip about Dave's study. I know my life and how I manage and treat money.
Arie Fraiser You may be the exception but face it...most people don’t know how to work a credit card. And I mean work it like play a game back with it.
@@ariefraiser140 You may pay off your credit cards every month but statistics show you spend more initially using a credit card vs a regular debit card.
@@lizziemartin6113 Part of the problem with the study Dave keeps citing is it looks at the ENTIRE US population. Those that are horrible with credit cards and money management as well as those that are highly successful. If there were to do a study of those on the FIRE movement it would be vastly different results. Even with the study Dave used there are still 22% of credit card users who pay off their card every month. 22%. Do a study of credit card users who are responsible users and get back to me.
@@stayathomemarine FALSE!.... I have a budget and I stick to it. It's NOT that hard. Besides the majority of my credit card use is automated payment of monthly bills such as cellphone, electricity, internet. And then the card is automatically set to be paid in full every month. Groceries are paid with the card and haven't gone overbudget except twice in the past 10 years. Everything is budgeted. Payments in full are automated. I don't understand how that's so hard for responsible people who budget.
i got 6 credit cards a 740 credit score and still keep my credit utilization low. I use credit cards to spend money i would be spending anyways. they are not bad if you know how to use them. now if you DONT know how to use them you max them out and pay the minumum of course they are bad. it depends on how YOU use them!
My credit card costs me absolutely nothing. I use my credit cards for things I would normally use cash for . Like groceries/food gas phone bills etc. I pay everything off in full by the end of the month and earn free points pay no interest. Yes some people don’t have the discipline to not spend more then what they need but I’m sure there’s a lot of people out there like myself who don’t.
I do the same thing and get cash back for every purchase. In December of each year, I cash out: It's free money. My guess is that the credit card company makes enough money in interest off other people that they can afford to give me free money each year. A debit card gives me no free cash back. Sorry Dave.
Investing Hustler The truth is, credit cards are not aimed at people like you, as the issuing bank will not be making any money. They’re aimed at normal people like me.
*GREAT VIDEO DAVE* Yes, SOO many Americans struggle with credit card debt... Technically, IF you have a budget and follow the budget AND the budget ALWAYS WINS, then it doesn’t matter HOW you pay... UNFORTUNATELY though, Many Americans DON’T DO THIS. 😔🤔
I have two credit cards. I've been paying them off every month since I got them. Never missed a month in over 10 years. My credit score is through the roof.
@@gmilla2825 easy there, Kool-Aid drinker. He is entertaining and he has some very interesting calls. Plus, I think the baby steps are great. It's after the baby steps where Dave and I disagree.
I have ZERO debt and use my credit card for everything. Have been doing this for 9 years now. I’ve never paid a penny in interest or fees. I stick to a very strict budget that doesn’t changed whether I use my credit card or debit card. I earn around $500 a year from this which is currently going toward my savings account I’m putting toward a rental property. I think Dave is just talking to the wrong people.
So... assuming you get the average 2-5%, you spent.. $10,000 -$25,000 on your credit card, or roughly $850-2100 per month . If you put $10,000/year in an S&P index fund (which has averaged 10% since its inception), in 30 years you'd have $1,899,437.77. But sure, enjoy your $15,000 in points.
I would love to hear Daves story with credit card debt. That would explain a lot of his position. Behavior inhibition does not bring discipline…the world is not stopping. You can learn to use the resources in the table and not be a slave to it.
I use my credit card to pay for food and gas and my bills, that I would pay off monthly anyway, so I use those points every year for sorts of free stuff. It all comes down to personal responsibility
@@jaredfrazier2216 exactly, just how Dave can’t wrap his head around all those “stupid people” as he calls them , that get into debt, there are also some of us who are debt-free and can responsibility manage our finances. People can’t wrap their head around that one either 🤷🏻♀️
Exactly! Works for people that struggle with money. His so hard to listen to if you're good with money. Good for people that need it tho I understand that
I have absolutely 0 knowledge of how much cash I have spent in the past year, however I know to the exact penny how much I spent on my 22 credit cards. Because I am constantly reminded of it, unlike cash that just disappears!
He doesn’t really need to “trust” himself with credit cards considering his net worth ..... CC are a newer modern concept and most ppl are not trustworthy with credit cards like yourself or else the consumer debt wouldn’t be so high.
Uh, but who goes on a Disney cruise (or any cruise) and just swipes their room key for whatever passes by their eyes...that sounds super financially irresponsible and I would have thought you'd have been wiser (since you advise so many against doing that) and not let yourself be 'Mickey-Moused'.
The Fun and Budget Act yes and he said it like the grand babies were spending the money? Who gives children access to swipe their room key to buy stuff?
I feel the pain when I withdraw the cash from an ATM, not when I spend it. I feel the pain when I pay the credit card bill, not when I make a purchase.
Dave Ramsey assumes that just because certain people are not responsible with cards, none of us should be using them. CCs and a credit score are tools that can be used to your advantage. Responsible spenders don't need to play psychological tricks on themselves because they are disciplined and motivated to reach their financial goals. No matter how many fits Dave Ramsey throws, people are going to continue to call this bad advice. Same as the marriage advice he gives out, having only one side of the argument on a 5 minute phone call.
Man, I must just know every single "above average" CC user... because everyone I've told this too says it's not them. "They always pay it off on time, and they never buy more than they would have with cash". I just shake my head and smile and say "Yea, it's weird, because NOBODY I ever talk to is the person who does it... yet the average person does it."
You might! The stat was, what, 78% carry a balance? That's 1 in 5 (of the population) who don't. Since folks tend to hang with like-minded individuals, if you're hanging with a fiscally responsible crowd, it wouldn't be surprising if you had a better-than-average amount of friends who are in that 1 in 5.
Keep those friends as they were clearly taught discipline!! I never learned it until I became an adult and am swamped in debt!! Congrats on picking good friends!!
Infinite Justice you missed one of his points actually. Or chose to ignore it. Even if you pay the balance off every month, are you really “disciplined” if you ended up spending 20% more than you would have if you would have paid in cash? The answer is no. That’s one of his points.
@@InDatParish No, I don't. I don't know where Dave got this number, but I don't think I fall into that category. Because Discipline for myself not only means paid my bills on time, also means that I only buy what's necessary.
I use credit cards for every purchase and I could tell you what I spend on everything and I watch gas prices like a hawk. Difference though is that you are buying that gas getting no cash back. I'm buying that gas getting 5% cash back. So I'm the winner there. I use my credit cards for only what I've budgeted and I've never gone over my budget
@@alexc5369 cash back mainly. I don't travel so I have no need for that. I have 14 credit cards atm. Card utilization is 0% and I get between 2%-10% back on all my purchases
@@alexc5369also you get extra protection and extra benefits with a credit card versus debit card. Sure you get the same Visa and Mastercard benefits, but there are different tiers of Visa cards and Mastercard that get different benefits and I don't think the debt cards have those different tiers.
My wife and I have no debt, pay our cards off multiple times monthly and get cash back in the following areas 6% groceries, 3% gas, 3% resturants, 5% Amazon, 4% hotels and airfare (regardless of brand, so I can choose the lowest cost option), 1-2% everything else. I also travel for work and expense hotels, airfare, and restaurants regularly which I receive cash back at no cost to me. I monitor our net worth and spending through apps like Personal Captial and Mint and spending on a CC shows up no differently than a debit card would. I don't think carrying cash around is a serious option in this day and age, especially when traveling. Additionally, when paying in cash I don't have the visibility of where my spending went with these finance apps. Credit cards are a tool, they can be misused for sure and many people do, but if used responsibly can provide various benefits. With apps like mint and personal capital, I do feel the 'pain' Dave talks about when I make purchases on a Credit Card, that I don't feel if I use cash that's not accounted for in the app. I think Dave has great advice in many areas, but think he has it wrong on this one, at least for people who treat a credit card like a debit card.
Nathan Bergey same here! Been using credit cards since 18. Always paid off. Never paid in dime of interest 6 years later. If I may ask, which cards do you use to get 6% on groceries and 4% on airfare? I would recommend the Capital One savior to up your 3% on restaurants to 4%. Or if you don’t already have the discover it, they do rotating categories that include restaurants and gas at 5%.
I have the Delta Reserve Card for $450 a year. If I spend 60K, I get 90,000 miles, or roughly $1,100 in flight credit, plus a BOGO first class companion pass. Just cleared out my account for Tokyo next year, so not exactly in the 90% camp. Free Lounge Access, Free Checked bags, and frequent seat upgrades are not meaningless. We do reposition cruise at nearly a half price discount, with comped airfare and hotel, which at one time all cost us cash.
You are exactly the type of person dave is talking about. All these free flights the came with the card you would not have paid cash for, therefore all the extra expenses that go along with travel like eating out, accommodation etc are all extra expenses that exist only because of the credit card...
@@alexc5369 I've given you some time to chew on this. I have 2 questions: #1. Where in this video does Dave criticize USING airline miles, BECAUSE of additional expense associated with travel? 2#. I explained that I do half price cruises, with free airfare and hotel. Dave explained that he does Disney cruises (triple normal price), gets "Mickey Moused" with overspending onboard, presumably with no travel expense comped. How is Dave's vacation plan the more financially savvy one?
Ah yes, Dave and all his PRESUMPTIONS! Don't know how I became a self-made millionaire while violating so many of Dave's presumptions? Maybe, it's because Dave makes assumptions that all his opinions are correct. They aren't!!
"It's the cigarette of the financial world. It used to be cool, and people are gonna acknowledge that it kills ya" - Dave Ramsey This is such a powerful analogy.
The people who really should not ever use credit cards are the ones who pick them for "the lowest interest rate". The fact of someone shopping for a credit card that way tells you that they're using credit cards incorrectly (intending to carry a balance).
Chris Vandernaald I haven’t personally studied it enough to firmly say I believe or don’t believe the 12% but I genuinely enjoy seeing those types of studies in addition to hearing Dave talk about them, so to answer your question, absolutely I’d love to see them. I’d be inclined to believe the 12% over a long term. 20+ years of seeing growth
My goodness, he's young! When I was young we didn't walk into the store to pay with cash. The attendant put the gas in, checked the oil and tire pressures, and we handed the cash to him without ever leaving the car.
Wow that must have been an amazing time haha. These days you just put the debit card into the slot to pay for the gas. No actual people work at most gas stations anymore.
I love that he says "airline service, other than Southwest, is an oxymoron". How true that is.. I only fly Southwest now because they are the one airline that I feel like they actually care about me as a customer.
i agree with dave on almost everything. credits cards is not one of them. I'd love for Dave to follow me around for a few months and see how I handle my CCs. he'd probably be too prideful to admit that some of us ARE beating the system.
Here's an idea for people who are already in credit card debt. When making your payments, take cash out to make your monthly payment with. You'll remember it the next time you want to buy something you can't afford.
People who manage money poorly are going to manage their cash and credit poorly. I have not paid interest on any credit cards in a very long time and I have five with an available credit limit amounting to $54,300.00. Contrary to what Mr. Ramsey is saying, I actually make money with the credit cards that I have. Money I wouldn't have made if I had used cash. Please remember that I am NOT paying any interest because I pay the balances in full every month. I'm making money on money I would've spent regardless of having a credit card or not. I'd be loosing money if I just used cash.
PAPER MONEY DAVE.....I carry a Chunk of gold and I shave it off with a knife to pay for things.... make a budget....when I pay any Bill now it causes friction ...debit or credit. I still won't use credit for anything I didn't budget for.
Dave would probably be pretty disappointed I bought his book on credit.
🤣
Hahaha that's funny, you should ask for the refund.
I'm sure if you told him he'd immediately refund your money. ;-)
U can't. They don't accept credit cards.
That is the ultimate irony if I’ve ever heard one. 😂
"You have four dollars to your name"
Dave is the ultimate savage 😂😂😂
Lol I laughed to that statement too
Yes, he beat that strawman half to death! Thankfully most of what he said was just his imagination and that is the reason he couldn't provide any sources for the allegations he made.
@@JustinGoodwin84 You go, Justin. Keep getting your airline miles.
Read some of Dave's books. He cites sources galore.
@@JustinGoodwin84 His source is millions of broke Americans.
Truth, and I can't get enough!
When you tell your dad you’re getting a credit card
Stores increase their prices slightly to cover the cost of accepting credit cards, so you’re literally throwing money away every time you use cash
Literally my dad
Basically my mom when I told her I wanted to build my credit score xD
Jos Malig-on you sound exactly like someone who’s in debt and denial congratulations they only scam people who use credit cards maybe pay off your debt before blaming others for your bad financial decisions and have a great day!
If my future son ever comes to me and says "dad, I got a credit card" I would HIGH-FIVE him because I guarantee you that I will raise my kid to actually be good with money unlike most of Dave's followers. And before he is even old enough to have a credit card in his own name, I will add him as an authorized user to my card so he'll have a MAJOR jump in the game. Trust me, my son will know to: pay the balance in full before its due to avoid interest, never overspend, and save up those points and cashback for a 100% free vacation. Because unlike Dave's followers, personally I've never overspent and I never paid interest in years since I opened my first card.
Net worth of $4? I think you're overestimating. I'm pretty sure majority of Americans net worth is in the negative due to student loans and credit card debt.
We are in a debt based economy. If we got rid of our debts, there would be 0 dollars in circulation
@@JK20239 There would be more money to spend, not 0.
@@JK20239 that's actually not true monetarily..... money supply may contract significantly. but it would not
Yeuuuup
Josh
I don't have debt.
No matter the form of payment , if a person have bad money management then they have bad money management.
Correct
True and the world is just finding new ways to make us think we need what it offers, we can't just stay at home or at work and say you're not intrigued by something you see online/tv/social media. we'll always be tested and the slope is slippery.
*Exactly!!!!*
Agreed. Cash runs out or you reach your credit limit.
@@ramirenriquez6795 the slope isnt slippery. Its called controlling your impulses.
My biceps are getting outta control from constantly ripping up credit card offers I recieve.
Get a shredder 😂 that will make it quicker 😂
Tear up all the paperwork and put it in their prepaid envelope and mail it back to them. I get almost no offers anymore.
Shane R thank you Shane this is my new favorite idea
8/15/20....THAT's what I do...I tear up the offer AFTER I HIGHLIGHT my name/address.
Then I mail it back so the ppl GET TO PAY POSTAGE BOTH WAYS!
NICE thing about C-19 + lockdown + ppl losing jobs...
lots less credit card offers being sent out b/c of economy!
hahaha awesome
"You're not even pulling the receipt of the thing. I know cause when I pull up, your stupid receipt is still hanging there" 😂😂😂😂
Dave, I took your course in 2005, cut up my credit cards and went cash only. Raising three kids, we were drowning in credit card debt. Best thing that could have happened to us. Our kids are now adults and also pay for things in cash. Amazing how much stress was relieved going cash. Thank you for your realistic voice of reason.
Credit cards are like🔪 use them the wrong way ...and you will get cut.
Plastic is not for the weak🧠...
I always pay them off early, I am NOT..going to pay interest ever.
@amgooder, I said the same thing about my credit cards--pay off total balance each month, no interest to pay--UNTIL I hit an unexpected financial snag and lost most of my income. 6 1/2 years ago, I hit rock bottom financially and have been climbing out of the pit ever since. After maxing out my credit cards just for basic necessities like rent and utilities, I had no choice but to go cash only. One of the most liberating things I have ever done was to cut up my credit cards and say, "never again!" I'm still in the process of paying off my final credit card. That day will be a weight lifted off my shoulders. We never know what can happen to turn us on our heads financially in spite of our best intentions.
That's just because you don't have any discipline with credit cards. That doesn't mean they're necessarily bad.
That's excellent! Congratulations.
Dave just yelled at us, going to sit in the corner now!
😂😂😂😂😂
OUCH!!
The Lotto King
Not at me.
I never filed for bankruptcy like he did.
You are in Timeout! Lol
"You're so freaking excited about your free trip to Europe that's not free." 😭😂😂😂
Here’s my notes🤓:
- 78% don’t pay a cc off a month. 22% pay it off
- Avg. 12-20% more w/ cc, ie at a vending machine it’s 178% more
- Reduces emotional friction; it’s a rigged game, 90% of airline miles are never redeemed
- Pay w/ a debit card not a cc
- Pain gives a memory, which is why people who use cash remember what’s spent
- The more $ you make, the more credit card debt you have
- Ramsey teaches discipline & even he falls into the trap of spending more w/ plastic
A lot easier to get reimbursed if your account gets hacked compared to debit card directly to your bank account. The credit card is a middle man hard stop to your actual bank account. You need to be disciplined to use a credit card though.
My family has paid off 20k debt in a month taking our original savings for a home and putting most of it there. What a relief this has been for my family. Finally going to be debt free by the end of the year. Never going back to this.
I'm just the opposite. If I have cash, it burns a hole in my pocket. Seeing a credit card balance activates the pain centers in my brain.
lol same
Mike Mayo same
Mike Mayo yep. Cash feels like money I don't really need and can "throw away" on whatever I want
I thought I was the only one that was opposite. Lol.
That's true, but you don't feel the pain when you swipe, you only feel it when you look at the balance and then it's to late.
I personally feel cash slips through my fingers more easily, but every time I use my debit card it registers in my brain that it's directly touching my bank balance and sometimes I feel like that makes me more cautious.
Stephanie
I’m the same way. But that probably comes from being a cashier as a teenager. It desensitizes you.
Cash slips through my fingers also but cards were a bigger threat to me. I started step 2 a few months ago and it has magnified my self discipline. I utterly despise debt now and this process has changed me.
yes same. when I use my debit card, I get the "OUCHY" moment lol.
Same! Cash is like free money. I think from all my years babysitting it was always extra money to me. The amount in my bank account doesn’t change when I spend it. I’ve always budgeted since I was a teen though so I’m probably not typical in general.
Agree, I've been using credit cards responsibly since 18. 0 debt
"Delta is Greek for we're not taking you there, we just said we were." 😂😂😂😂
I've saved hundreds of dollars thanks to the bonuses and cash back rewards plus 2% cash back on every purchase and 5% cash back on revolving categories. I pay it off in full every month and only use it on stuff I would have payed cash/debit card anyways.. it's called having discipline and common sense.. it's not that hard.
Edit: Thanks Graham
Dexter Morgan I do exactly what you do.
This video is not for you, it is for the 78%
You know why the yankees always win? Because the other team is busy watching the pin stripes.
You know why the credit card companies always win? Because you are busy watching your points and cash back
@@alexc5369 lol not at all. The credit cards I get have a sign up bonus of $150 to $250 cash back after you spend $500-$1000 in the first 3 months on the card. I use them on things I have to/normally buy anyways but I pay them off in full and collect the cash back and have never paid a dime in interest.. the credit card companies only win against the majority of ppl that don't know how to manage money or pay their bill on time.
Sorry Dexter but I disagree. Let's say you wanted to buy a pair of shoes. You tell yourself you want to spend $100 for the new pair. You find shoes for $89.99 plus tax and let's say it comes to $110. You would justify it by saying whatever it's an extra 10 bucks more, no big deal, use your credit card. Even if you go on your phone and pay your CC off the second you leave the store, you just paid 10 bucks more than you wanted to. Even though you didn't go into debt doing so, you just spent more.
Versus if you walked into the store with $100 bill to buy shoes you're not gonna spend even $105 on the new pair.
I used to be in the 78%. I'm now in the 22% and have cut our family spending 20%. We have paid off all our credit card debt and have saved 85k since March of this year.
Way to go. I did my debt free scream three years ago. Yeah I still use CCs, but I pay them before the cut dates.
How’s that possible? Your income must be very high
@@ryanthepianoman27 We do make a good chunk of change but we were not disciplined with our money. We spent as much as we brought home. Once I cut spending and put us on a budget the money piled up.
Can you imagine being the gas station skimmer that gets Dave Ramsey's debit card info?
Anyone else feel like their dad just yelled at them for the first time?!? 😩
When I was just out of college my great grandma on the east coast was turning 100 and i wanted to visit her. I didn't have the cash to travel so I applied for used a credit card to visit her on the east coast. She passed away a year later. To this day I do not regret using a credit card for that trip!
Well even Dave says he's guilty of it, and says he'll do it again-- for the grandbabies lol. It's more trying to minimize that stuff. Sorry 'bout your Grand...
That's one of those situations where you've got to make a call you can live with. Hopefully you paid it off and cancelled it though.
Did u get her a gift?
And you probably still owe till this day…
Just paid a $21000 capital gains tax and I’m glad it was paid through direct debit. Having to drive to my local IRS office with a briefcase full of cash would have hurt like nothing else. Another great video Dave, I’ve switched to cash for almost everything and I spend so much less now. I spend a lot more time thinking about my purchases.
Comment section:
DAVE RAMSEY FANS vs CREDIT CARD USERS
This comment should be at the very top.
George V DAVE RAMSEY 🐑 vs financially literate people.
@@MrNGTfan123 because you're beating the credit card companies?
Malicemaniacman nice you quoted exactly what a man said on the internet, wow I’m impressed we have a smart one here ladies and gentlemen 😂
@@MrNGTfan123 wow, you could've saved yourself some typing by admitting I am right. What a petulant person. Good look man.
Lol “we got Mickey moused”
There is a Disney card now.... Saves you 10 percent at disney stores and gets you into special areas at disneyworld...
that got me too 😂
Stop the preview at the beginning. Keep the old format
I kinda like it. Seems to be trending with other UA-cam videos.
Agreed. Just get down to business.
I don't like it here or in other videos, it just gets me in the habit of skipping ahead immediately
It spoils the video and then when that part actually happens I just forward it Bc I already listened to it. It’s annoying
Agreed
I'm glad that you tell the truth, no matter what or who gets their feelings hurt. Thank you Dave.
it's bullshit. just don't be a baby and use your credit card exactly as you use cash or debit cards. some percentage of the population might have a spending problem with credit but not everyone.
I'm a programmer. I coded something that sends me a daily budget using the banks automated notifications. When I'm over the budget, my credit card doesn't work unless I actually sign in and authorize more spending which I only do in emergencies. Every transaction sends me a text with how it affected my budget and what remains for the day. The best discipline is making your system not require discipline.
So. I spend exactly what I want to as laid out in my budget. If I overspend today I can't spend tomorrow. However, his advice works for the vast majority of people and that's why he is 100% correct in this segment.
He's actually correct. I went grocery shopping today. Took 60 bucks with me. At the checkout, the total was 71 dollars. Had I had my credit card, I would've just used that. But, because I had cash, I had to put stuff back. Dave is correct, you'll overspend using plastic. Use paper.
If you.went to check out line with 71 worth of stuff with only $60 to spend then your problem is not credit card to begin with. Dave Ramsay blames credit cards because he can't directly call his sheep morons.
SMH at this logic
Ed Jones
I like keeping a $1500 cash balance on my credit card and buy what I want.
Ignorant logic.
I'd just draw more, because the same card I use to draw from an ATM can be used to draw money in the supermarket. Also I already know approximately what I am going to spend before I get to the till.
Got a “free” round trip to Savannah, GA through Southwest CC. Paid OVER $1,500 while there for hotel and food. Used the SAME credit card to pay for it....I got a “PhD in D.U.M.B.” Just like Dave said....kicking myself to this day ! It’s a vicious cycle that CC companies have us in if we’re not smart.
This month I have paid off and closed three credit cards 💳. Two more to go. My foco score falling fast 💨 and I couldn’t be happier.
dnizus Way to go!👍
@Michel Houellebecq if you're planning to never borrow money again, who cares what your credit score is?
Michel Houellebecq true but sadly I was part of the 78%. I had a 790 fico score in April/May. I now have a 566. I closed a 17 year old account with about $17,000 in credit. It hit hard when I realized my savings didn’t match my credit score.
@@kebinyo borrowing money is not the only reason you need a good credit score
Michel Houellebecq LoL that’s lame! But whatever...continue on down that road.
I wish Graham Stephen would watch this😂
Right 😂
He obviously will
Lol he's the anti Ramsey.
I wish Graham understood this 😂😂😂
@@xrlben lol I disagree with Dave Ramsey here & agree with Graham Stephon much more. Though I'm not rich, my net worth is only $4.
I mean even Apple has their own credit cards, it must be a good business.
It is good business. Hence the 78% they make a lot of money off. Way more than enough to cover the people that don't. Even on those people, they make a tiny bit of $ off of the fees they charge merchants. They only lose $ when someone defaults and they can't collect or someone steals a credit card and they eat the cost. However that is just standard bad debt, some call it breakage and a cost all businesses have.
very good business... for the lender
Indeed, I like their credit card. 2% back on everything I great. I most I’ve ever had for everything was 1.25%
@@whatupdoe3623 everything with apple pay only
They have a credit card now because they want the Apple consumers to rely on them completely and never leave the ecosystem. Like google with their phone service.
My wife and I cut up 4 c cards on 1/1/2020!! 👍🏻
Now to get emergency fund fully funded, then on to step 2 🤞🏻
How’s it going? I’m also on step 2. Push through!
And then pandemic happened
"We got Mickey Moused" 😂😂😂😂 I know many commentators say Dave is too extreme in his views on CC, but the trillion dollar cc debt shows that lots of ppl are getting mickeyed up.
Started Dave’s plan in 2018. Paid off $120,000 in debt in less than 2 years (debt free except house). Took my networth from $385,000 in 2018 to $1,435,000 this July 2024. And I’m 12 months away from a paid off house. Took a lot of sacrifice but we did it. Thanks Dave!
Debit card is the way. With cash, I hate holding loose change and eventually forgetting about them
I had a teacher in highschool named Mr. Orgel. He has my history teacher for my senior year. He was 70 years old and told us he had like 20 something grand kids. He told us that he has seen it all. HE HAS SEEN IT ALL. He said the last 7 days of our senior year, he wasn’t going to teach the curriculum, he has going to teach life lessons. Said that credit cards or he called them “plastic fantastics” will ruin your life. He told us to never borrow money, only spend what you own.
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Dave keeps telling us that fire is hot and will burn you, yet everybody still wants to play with matches!
This is the only area I disagree with ya Dave. I'm very responsible with my Credit Card and what I use it for. Full balance paid off every month. Every other part of your program I think is great.
Trey2Da yes your are some of the FEW people whom of which use credit responsibly. The cigarette 🚬 was an excellent example. Not everyone dies of cigarettes 🚬 but MOST people that smoke 💨 ultimately have poor health. Most people do not use credit resources responsibly.
You can still over spend even if you pay it off
Yeah, but I don't buy more gasoline because I'm paying at the pump with plastic. I fill up my tank when it needs it -- whether I'm paying with cash or credit.
Exactly. Same for me. Same with everything, food and other stuff.
If you only had $20 in your wallet you wouldn't spend over $20.
@@bjcj123 And then you would run out of gas on the highway.
@@marcdonvito6485 No. Then you would go home and not do anything besides drive to and from work until you get paid next. Frugal people stay home and not drive anywhere because that spends money
The point is stick to a budget. The whole point of the envelope system is to limit spending on a category. The idea of only having $20 in your wallet is an analogy for having a budget. With plastic it is a lot easier to "dip" into other envelopes i.e. spending categories. If your card said declined because you overspent on that budget category then you would spend less. A good example is today I went and bought fruit and veg and deliberately only took $100. Guess how much the bill came to... $103.85. I said to the cashier "can I take the spinach back", to which she replied, "no $100 is fine" (we live in the country; people are very friendly and generous). Keep to a budget, use cash or a cash equivalent mentality along with a budget. You will save, guaranteed!
I feel the pain regardless--paper or plastic.
If you have a thing called self control then this doesn't apply.
Dave caters to people who don’t have self control that’s why he preaches this so much
@@JuanCarlos-sd3xx Yes, Dave's as I like to say, deals with "financial alcoholics" all day. When you do this, you tend to look at things differently.
Many of Dave's followers are recovering from consumer debt. I'm not but still like financial talk. Those that had past cc debt have spending issues and should avoid a cc as they proved in past the have lack of impulse control.
Dave is the 54 year old grandpa that wears Hollister.
bhs I love hollister
@@NSGLiv I'm not surprised.
I remember starting college in 1992 at 18y old, making about 9k year. I got my first credit card from BOA. My credit line was either 20k or 30k with an introductory rate of 0%. I thought I was special. How naive I was! It took me about 9 years to pay off that BS.
Wow your rich!
That's because you was young. I think one credit card with 20k limit is fine.
For those of us disciplined enough to not overspend I'd say you're wrong. Haven't paid for a single flight in over 5 years thanks to my AMEX
And the added "flex" value is also a perk
You wouldn’t go on any flights and waste money on vacation if you didn’t have the points. You spend more money on the vacation than the flights so even though you save on the flight you are still spending. It’s about behavior. If you didn’t have a credit card you would be spending less money on vacations and more on paying off debt. Statistically.
@@jerrygee941 Agreed, it's all about behavior. I'd probably still be traveling just the same as I have 0 debt and can afford to do so without the rewards. The fact that I'm leveraging reward points by utilizing a charge card that I pay in full every month is being savvy by using one card vs another. Once the behavior is in place, the rest is secondary.
@@jerrygee941 What debt? I have no CC balance carried, but I DO have rewards points, so...my CC owes ME. I have no student loans, but I have a degree, a veteran's grant, and tuition reimbursement from work. I have no vehicle loans. I have an emergency fund and other savings. I'm getting vested in a pension fund AND I put into a 401K and IRA. I have 2 jobs and I'm starting a side business. I think I can afford a simple vacation now and then.
Do you own your own home without a mortgage? If not, shut up and listen to Dave
If you limit your credit card spending to just spending you had to do anyways (like paying your rent), you can chase sign up bonuses and never go into debt or spend more than you would have otherwise. I make thousands of dollars a year by beating the system. Though I understand your data and agree with you that 80%+ worth of people can't control themselves.
Sure you do
@@mdtaherali2704 don’t be mad u couldn’t do that lol
I got to look into sign-up bonuses. Some offers sound really good, ngl. I can enroll in the card, charge to the specified number, and dump the card once I pay off the brief, minimum charges so to speak. It sounds savvy; it’s almost like a 10%-33% cash back opportunity, if there is no fine print
Credit cards ultimately cost you your freedom and sanity, ALWAYS WORRYING about the due date, and ALWAYS WORKING to pay off the balance.
Its just like a debit card you just have to log into your app and pay off once a week. No worries.
zackychan finacial no it isn’t!
All bills have a due date. Pay off the balance in full just as you do any other bill. You can even setup auto payment for the balance if you like. If you spend less than you make, this should never be an issue.
If you can’t manage a few tiny credit cards then you certainly can’t handle the work load of having your own business
Ryan De Witt
If it wasn’t an issue Dave Ramsey wouldn’t be in business. Apparently it’s not a problem for you since it’s not an issue.
I found this out the hard way. I noticed that when I use plastic when I go out I spend more money because you don't see it or feel the pain like you say. Now I take out a set amount that I am going to spend and that's it.
Not having a credit card is the only reason I m not financially ruined
Seriously, I had a card to every store in the mall in my 20s 😩
My dad has Alaska airmiles card been using it for over 20-30 years. Just pays it off at the end of the month. Every month gets free flights all over the world...
I worked in retail and cashiers + sales associates are rewarded greatly if they manage to sell a credit card for the store. They help profits for the business SO much. When I worked there, then I realized why it's so one sided in advertising. They don't help the consumer in virtually any instance. Even if you think you're the savviest person ever, credit cards are just a burden to manage and do not excel your wealth significantly even if you pay everything off, get rewards, etc. In the end it restricts you on where/what you want to buy while just adding another thing on your list to test your mental health.
I have 5 credit cards and only use 1 for most of what I purchase. In the past year I’ve opened 3 CC and received a total of $600 intro bonuses. I also get between 2-5% cash back, fraud protection, purchase protection, zero liability protection, curb aide assistance, and $0 annual fee. I auto-pay full balance every month and receive push notifications whenever I am within $100 of my budget so I can never overspend.
It doesn’t sit right with me to spend money I don’t have. It’s insane to me to the point I won’t date someone who’s in debt. It’s simple buy what you can afford or save up to the point where you can buy it twice. You don’t need the most expensive car or whatever
Ludens you can have the money and use a credit card. I don’t buy anything if I don’t have the money but I use a credit card. I have no debt and excellent credit. I use my credit card like a debit card but I get extra benefits from it.
And don’t date anyone with a child/children and/or married before. It’s nothing but trouble both financially and emotionally.
Dating someone who's in debt sounds like a disaster. Dating someone who's in debt and they don't know how much is a catastrophe. Dating someone who's in debt, who doesn't know how much, and who doesn't have a plan sounds apocalyptic.
I would NEVER date someone who is in debt. Period.
I use credit cards and don't pay interest nor do I spend more to chase points or cashback. I use a credit card for purchases I was going to make anyway, and already have the $ for in my checking account to pay off the balance in full.
Sounds like a lot of wasted energy to just get some points or cash back.
“Your net worth is 4 dollars”🤣🤣🤣 I love Dave
🤣🤣🤣
I used my debit card and to activate the pain centres I wrote down every dime I spent. Also, I had a budget. It worked great, I learned to really think about every purchase and what I need vs what I just want.
I don't need to write it down, because I get a notification after each transaction, although I do put it into a spreadsheet, so I can run my total against my bank's at the end of each month.
@Sober Gnostic It wasn't bad at all. I was just learning behavior by utilizing my senses. It was a grounding experience. I don't do it anymore because the lesson is learned and I benefit from it every day.
Imagine how much more wealthy we would be If we payed ourselves that amount of money.
Delta is greek for "We're not really taking you there, we just said we were" - I almost died laughing haha
DELTA: Don’t Expect Luggage To Arrive
I really like the overall philosophy that he preaches. His big emphasis is live within your means and pay attention to what you spend. The only issue I have is Dave has a “one size fits all” philosophy. I wish he would acknowledge that there is more than one way to manage money. A disciplined person will do fine with money and with other life decisions.
95% of the people who this show caters to have no financial discipline. If someone knows there are other ways to achieve financial freedom, they do not need to hear Dave Ramsey say it. This is his show and his personal philosophy.
I agree so much I thought this comment was by me as I read 5 words in haha. I use a credit card to buy online. I record each purchase in a spreadsheet. I pay off the balance using the money I would have withdrawn for the purhase. I use a separate credit card purely for my work expenses. Credit card work. But I do understand that Dave is preaching to those that aren't good with money, so from that perspective they are dangerous. I once racked up credit card debt when my bank gave me one as a student - they must have made a load out of me!
EDIT: I continued to listen to Dave and I think he's right lol. It's the pain thing. Even when I use my credit card and register the payment on my spreadsheet, it doesn't cause any pain in my bank account. Hmmmm. I need to rethink this I think!
Sometimes he can be tough to budge but at least he’s basing it on data/studies and not his own stubbornness 🤷♀️ His plan is tried and true
He's 100% right in the long run. Doesn't matter about your bonuses or points. If you keep too many cards and make a lot you're going to be tempted to overspend. Admit it.
Not me at all. No other debt except mortgage and pay off credit cards every single month for the past 10 years now. And take $3000 worth of airline miles a year.....I can give a flip about Dave's study. I know my life and how I manage and treat money.
Arie Fraiser You may be the exception but face it...most people don’t know how to work a credit card. And I mean work it like play a game back with it.
@@ariefraiser140 You may pay off your credit cards every month but statistics show you spend more initially using a credit card vs a regular debit card.
@@lizziemartin6113 Part of the problem with the study Dave keeps citing is it looks at the ENTIRE US population. Those that are horrible with credit cards and money management as well as those that are highly successful. If there were to do a study of those on the FIRE movement it would be vastly different results. Even with the study Dave used there are still 22% of credit card users who pay off their card every month. 22%. Do a study of credit card users who are responsible users and get back to me.
@@stayathomemarine FALSE!.... I have a budget and I stick to it. It's NOT that hard. Besides the majority of my credit card use is automated payment of monthly bills such as cellphone, electricity, internet. And then the card is automatically set to be paid in full every month.
Groceries are paid with the card and haven't gone overbudget except twice in the past 10 years. Everything is budgeted. Payments in full are automated. I don't understand how that's so hard for responsible people who budget.
i got 6 credit cards a 740 credit score and still keep my credit utilization low. I use credit cards to spend money i would be spending anyways. they are not bad if you know how to use them. now if you DONT know how to use them you max them out and pay the minumum of course they are bad. it depends on how YOU use them!
"Knowing how to use them" does not equal "Spending only what you should/can".
@@ibealion1 well that's why you should using them in things you would be spending anyways.
@@ibealion1 it does because that’s how you should use them. Treat them like cash.
So why do u need them if you can use a debit card. Because if you ever forget to pay then you incur a charge.
@@Zandi33389 stop reaching bro lol
My credit card costs me absolutely nothing. I use my credit cards for things I would normally use cash for . Like groceries/food gas phone bills etc. I pay everything off in full by the end of the month and earn free points pay no interest. Yes some people don’t have the discipline to not spend more then what they need but I’m sure there’s a lot of people out there like myself who don’t.
I do the same thing and get cash back for every purchase. In December of each year, I cash out: It's free money. My guess is that the credit card company makes enough money in interest off other people that they can afford to give me free money each year. A debit card gives me no free cash back. Sorry Dave.
7:34
Investing Hustler The truth is, credit cards are not aimed at people like you, as the issuing bank will not be making any money. They’re aimed at normal people like me.
*GREAT VIDEO DAVE* Yes, SOO many Americans struggle with credit card debt... Technically, IF you have a budget and follow the budget AND the budget ALWAYS WINS, then it doesn’t matter HOW you pay... UNFORTUNATELY though, Many Americans DON’T DO THIS. 😔🤔
I have two credit cards. I've been paying them off every month since I got them. Never missed a month in over 10 years. My credit score is through the roof.
Same here been doing the cash back method since 2007 and never missed a payment.
Same here. Dave's product and brand is geared towards someone with no discipline. Not all of us fit that category.
Why are you watching Dave if you have it all figured out and Dave is stupid?
I call BS on all you liars.
@@gmilla2825 easy there, Kool-Aid drinker. He is entertaining and he has some very interesting calls. Plus, I think the baby steps are great. It's after the baby steps where Dave and I disagree.
I have ZERO debt and use my credit card for everything. Have been doing this for 9 years now. I’ve never paid a penny in interest or fees. I stick to a very strict budget that doesn’t changed whether I use my credit card or debit card. I earn around $500 a year from this which is currently going toward my savings account I’m putting toward a rental property. I think Dave is just talking to the wrong people.
You nailed it David!!
Yeah Dave talks to all the wrong people. Hes just old and thinks hes right about everything.
Which credit card do you use
So... assuming you get the average 2-5%, you spent.. $10,000 -$25,000 on your credit card, or roughly $850-2100 per month . If you put $10,000/year in an S&P index fund (which has averaged 10% since its inception), in 30 years you'd have $1,899,437.77. But sure, enjoy your $15,000 in points.
@@macebrooks Ramsey is correct on this. Using a card for one year vs using cash, the card will spend more on the exact same items
I would love to hear Daves story with credit card debt. That would explain a lot of his position. Behavior inhibition does not bring discipline…the world is not stopping. You can learn to use the resources in the table and not be a slave to it.
I use my credit card to pay for food and gas and my bills, that I would pay off monthly anyway, so I use those points every year for sorts of free stuff. It all comes down to personal responsibility
Maybe you buy the more expensive brand to get the miles/points/whatever.
@@Yewon2001 naw, I'm cheap lol
@@Yewon2001 ratioed
@@Yewon2001 stop reaching. Not everything is an argument
@@jaredfrazier2216 exactly, just how Dave can’t wrap his head around all those “stupid people” as he calls them , that get into debt, there are also some of us who are debt-free and can responsibility manage our finances. People can’t wrap their head around that one either 🤷🏻♀️
The thing about Dave Ramsey is that he’s consistent. His philosophy doesn’t work for EVERYBODY, but it will work for ANYBODY.
what?
Exactly! Works for people that struggle with money. His so hard to listen to if you're good with money. Good for people that need it tho I understand that
I have absolutely 0 knowledge of how much cash I have spent in the past year, however I know to the exact penny how much I spent on my 22 credit cards. Because I am constantly reminded of it, unlike cash that just disappears!
4 years later and the message still rings true.
Oh Dave - still with the Credit Card RANT - He just admitted he doesn't trust himself with Credit . At least he's honest, got to respect that.
He was bankrupt by age 28..LOL. I'm 28 and have a positive cash flow
I hope he keeps them coming. So many people are in CC debt
He doesn’t really need to “trust” himself with credit cards considering his net worth ..... CC are a newer modern concept and most ppl are not trustworthy with credit cards like yourself or else the consumer debt wouldn’t be so high.
Caleb Shares agreed I know them.
New Concept- Credit cards have been around for 69 years . That was a good one lol
Uh, but who goes on a Disney cruise (or any cruise) and just swipes their room key for whatever passes by their eyes...that sounds super financially irresponsible and I would have thought you'd have been wiser (since you advise so many against doing that) and not let yourself be 'Mickey-Moused'.
The Fun and Budget Act yes and he said it like the grand babies were spending the money? Who gives children access to swipe their room key to buy stuff?
The "Coming Up..." preview is so unnecessary. Can we not make that a thing?
I feel the pain when I withdraw the cash from an ATM, not when I spend it. I feel the pain when I pay the credit card bill, not when I make a purchase.
I try to listen to a couple of Dave Ramsey videos every morning to remind me of the debt noose.
Dave Ramsey assumes that just because certain people are not responsible with cards, none of us should be using them. CCs and a credit score are tools that can be used to your advantage. Responsible spenders don't need to play psychological tricks on themselves because they are disciplined and motivated to reach their financial goals. No matter how many fits Dave Ramsey throws, people are going to continue to call this bad advice. Same as the marriage advice he gives out, having only one side of the argument on a 5 minute phone call.
Call Dave Ramsey and tell this exactly see what he says lol
Man, I must just know every single "above average" CC user... because everyone I've told this too says it's not them. "They always pay it off on time, and they never buy more than they would have with cash". I just shake my head and smile and say "Yea, it's weird, because NOBODY I ever talk to is the person who does it... yet the average person does it."
You might! The stat was, what, 78% carry a balance? That's 1 in 5 (of the population) who don't. Since folks tend to hang with like-minded individuals, if you're hanging with a fiscally responsible crowd, it wouldn't be surprising if you had a better-than-average amount of friends who are in that 1 in 5.
I am guilty of the latter but not the former.
Keep those friends as they were clearly taught discipline!! I never learned it until I became an adult and am swamped in debt!! Congrats on picking good friends!!
My old company tracked CC customers vs cash. CC customers spend almost exactly twice as much just with automotive care.
I get it, Dave, credit cards aren’t meant for everyone. But as a Disciplined person I really enjoy credit card’s convenience and benefit.
Infinite Justice you missed one of his points actually. Or chose to ignore it. Even if you pay the balance off every month, are you really “disciplined” if you ended up spending 20% more than you would have if you would have paid in cash? The answer is no. That’s one of his points.
@@InDatParish No, I don't. I don't know where Dave got this number, but I don't think I fall into that category. Because Discipline for myself not only means paid my bills on time, also means that I only buy what's necessary.
Infinite Justice well congratulations. He didn’t say this was the case for 100% of the people.
@@InDatParish He certainly tried to imply it.
I use credit cards for every purchase and I could tell you what I spend on everything and I watch gas prices like a hawk. Difference though is that you are buying that gas getting no cash back. I'm buying that gas getting 5% cash back. So I'm the winner there. I use my credit cards for only what I've budgeted and I've never gone over my budget
May i ask why you use a credit card though ? Cashback or points?
@@alexc5369 cash back mainly. I don't travel so I have no need for that. I have 14 credit cards atm. Card utilization is 0% and I get between 2%-10% back on all my purchases
@@alexc5369also you get extra protection and extra benefits with a credit card versus debit card. Sure you get the same Visa and Mastercard benefits, but there are different tiers of Visa cards and Mastercard that get different benefits and I don't think the debt cards have those different tiers.
Statistics say you lyin.
My wife and I have no debt, pay our cards off multiple times monthly and get cash back in the following areas 6% groceries, 3% gas, 3% resturants, 5% Amazon, 4% hotels and airfare (regardless of brand, so I can choose the lowest cost option), 1-2% everything else. I also travel for work and expense hotels, airfare, and restaurants regularly which I receive cash back at no cost to me. I monitor our net worth and spending through apps like Personal Captial and Mint and spending on a CC shows up no differently than a debit card would. I don't think carrying cash around is a serious option in this day and age, especially when traveling. Additionally, when paying in cash I don't have the visibility of where my spending went with these finance apps. Credit cards are a tool, they can be misused for sure and many people do, but if used responsibly can provide various benefits. With apps like mint and personal capital, I do feel the 'pain' Dave talks about when I make purchases on a Credit Card, that I don't feel if I use cash that's not accounted for in the app. I think Dave has great advice in many areas, but think he has it wrong on this one, at least for people who treat a credit card like a debit card.
Nathan Bergey same here! Been using credit cards since 18. Always paid off. Never paid in dime of interest 6 years later. If I may ask, which cards do you use to get 6% on groceries and 4% on airfare? I would recommend the Capital One savior to up your 3% on restaurants to 4%. Or if you don’t already have the discover it, they do rotating categories that include restaurants and gas at 5%.
@@NickiVproductions I have the Uber Visa (got it backward, 4% resturants and 3% hotel/airfare, and the AMEX Blue Prefered for 6% groceries, 3% gas)
Nathan Bergey i doubt dave is talking to you, he’s talking to the average consumer
the answer is zero. A credit card cost me zero dollars and actually makes me money for nothing.
I NEED a new rant on this. This ALWAYS comes up. So much statistics on this & people just follow their desires anyway..
I have the Delta Reserve Card for $450 a year. If I spend 60K, I get 90,000 miles, or roughly $1,100 in flight credit, plus a BOGO first class companion pass. Just cleared out my account for Tokyo next year, so not exactly in the 90% camp. Free Lounge Access, Free Checked bags, and frequent seat upgrades are not meaningless.
We do reposition cruise at nearly a half price discount, with comped airfare and hotel, which at one time all cost us cash.
You are exactly the type of person dave is talking about. All these free flights the came with the card you would not have paid cash for, therefore all the extra expenses that go along with travel like eating out, accommodation etc are all extra expenses that exist only because of the credit card...
@@alexc5369 I've given you some time to chew on this. I have 2 questions:
#1. Where in this video does Dave criticize USING airline miles, BECAUSE of additional expense associated with travel?
2#. I explained that I do half price cruises, with free airfare and hotel. Dave explained that he does Disney cruises (triple normal price), gets "Mickey Moused" with overspending onboard, presumably with no travel expense comped. How is Dave's vacation plan the more financially savvy one?
Ah yes, Dave and all his PRESUMPTIONS! Don't know how I became a self-made millionaire while violating so many of Dave's presumptions? Maybe, it's because Dave makes assumptions that all his opinions are correct. They aren't!!
"It's the cigarette of the financial world. It used to be cool, and people are gonna acknowledge that it kills ya" - Dave Ramsey
This is such a powerful analogy.
The people who really should not ever use credit cards are the ones who pick them for "the lowest interest rate". The fact of someone shopping for a credit card that way tells you that they're using credit cards incorrectly (intending to carry a balance).
Anyone else in here come back to these videos for Refreshers and a good laugh? 🤣🤣😹😹
Dave you say "many studies" often when talking. I think it’d be helpful to cite these studies so we can read them and learn more.
Yes I'm actually genuinely curious
Pfft.. I'm guessing you want the 12% funds too?
Chris Vandernaald I haven’t personally studied it enough to firmly say I believe or don’t believe the 12% but I genuinely enjoy seeing those types of studies in addition to hearing Dave talk about them, so to answer your question, absolutely I’d love to see them.
I’d be inclined to believe the 12% over a long term. 20+ years of seeing growth
@@charlescc1000 I was joking.. I'm personally a believer in 12% funds, I've seen a few.
@@ChrisMFlorida LOL
I am someone who pays off my CC every month but I absolutely agree with him about the emotions of paying with cash vs with plastic.
Conclusion: 78% of people are impulsive or forgetful. Still sounds like it has nothing to do with card.
The credit card is a symptom. It's like someone who enjoys an occasional drink vs an alcoholic. Not all of us are alcoholics.
My goodness, he's young! When I was young we didn't walk into the store to pay with cash. The attendant put the gas in, checked the oil and tire pressures, and we handed the cash to him without ever leaving the car.
It depends what state you lived in.
Wow that must have been an amazing time haha. These days you just put the debit card into the slot to pay for the gas. No actual people work at most gas stations anymore.
And they checked the oil and cleaned the windshield. Full service, of course.
When fish got out of the ocean and grew legs
I love that he says "airline service, other than Southwest, is an oxymoron". How true that is.. I only fly Southwest now because they are the one airline that I feel like they actually care about me as a customer.
Dave has a secret credit card he tells nobody about. It's his little secret.
i agree with dave on almost everything. credits cards is not one of them. I'd love for Dave to follow me around for a few months and see how I handle my CCs. he'd probably be too prideful to admit that some of us ARE beating the system.
No one beats the system
Here's an idea for people who are already in credit card debt. When making your payments, take cash out to make your monthly payment with. You'll remember it the next time you want to buy something you can't afford.
151 people who disliked this are proud of their airlines miles!
People who manage money poorly are going to manage their cash and credit poorly. I have not paid interest on any credit cards in a very long time and I have five with an available credit limit amounting to $54,300.00. Contrary to what Mr. Ramsey is saying, I actually make money with the credit cards that I have. Money I wouldn't have made if I had used cash. Please remember that I am NOT paying any interest because I pay the balances in full every month. I'm making money on money I would've spent regardless of having a credit card or not. I'd be loosing money if I just used cash.
PAPER MONEY DAVE.....I carry a Chunk of gold and I shave it off with a knife to pay for things.... make a budget....when I pay any Bill now it causes friction ...debit or credit. I still won't use credit for anything I didn't budget for.
Am I the only one that loves the way Dave says "debt"?? Lol
"You're in so much DAHT you can't even breathe" 😂