Why Is Having A Credit Card A Bad Idea?
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- Опубліковано 28 вер 2024
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Another thing to think about with this topic. We prioritize paying debt over saving money. Even when we do pay off our credit cards in full every month, we have to pay that before we put money away into savings. And, in many cases, after you pay your card off in full, you look at your checking account and say some along the lines of "Well I can't save anything because my balance is too low already".
When you don't have to pay your credit card, you open the door to save more of your money.
Good points
Exactly! 👍🏾
Yes I had a credit card for a year and it started to hit me
Debt isnt nothing to play with!
RIGHT!!
spencer brown so true but there’s a lot of idiots who can’t comprehend that.
@@partyfavors9238 You're a idiot if you cant control yourself, not If you use a credit card for the benefits and to improve credit score. Now you may listen to everything that he says but one thing you may not of noticed but dave kinda treats alot of situations like everyone is a millionaire and can buy homes in cash . You need good credit to get a mortgage on a decent home.
WU TANG
Debt is fine if you have it under control and you can make the payments, let's say a car loan.
The loyalty people have towards credit cards just puzzles me. I really don’t get it. When I had credit cards I paid them off monthly too until I didn’t/couldn’t. It’s like Dave said your playing with snakes eventually if you play long enough you WILL get bit.
Or pay it every time you go home before sleeping, so you feel the pain, stop extra spending, and leave one small charge for the reports.
Just don’t spend money you don’t have. You can’t blame your financial irresponsibility on credit cards.
"All of this so you can get a $35 hotel room when u make $200k a year?"
"There's no point in being penny wise to be pounds foolish." - T. Sowell
I respect Thomas Sowell, but I disagree with a good part of what he says.
Gold quote!💰
Having a credit card and paying the balance in full each month is a great plan for some people, but not for me. It really depends on individual circumstances. The problem with credit cards is they make it hard to stick to a budget.
Hey. At least you admit it. I used to be the person that had issues with credit cards. And I have a finance degree... yikes.
Got myself in a lot of stupid trouble, like Dave. Bankruptcy, car repo, you name it.
That experience set me straight, but not to an extreme. I now only use a credit card as my debit card alternative to earn cash back and points. Pay it off before the billing cycle (or sometimes as soon as I get home).
I agree with you.
your lack of responsibility makes it hard to stick to a budget
Consider a credit card, like a gun. Not everyone should and can use a gun. Only the responsible and robust can own and use one.
Drummergeorge I question the adults who are not responsible enough to have a CC, if they are capable to handle REAL responsibilities like becoming a parent, owning a house, being employed in any mildly important job, etc
That’s a very dumb analogy. Sorry.
Drummergeorge debt cards were stated to do the same thing, so debt cards would be considered to be used as a gun too. wait... a gun?! that doesn't make sense, you aren't using it against people. bad example!
Drummergeorge is somewhat right. Both can be used to do good and bad. You better handle the credit card properly like you handle a gun. There is a right and wrong way to handle credit card and a gun so better do it the right away or you will be in big trouble.
Thr problem with credit cards is the interest you have to pay them back is ridiculously high 19 to 21 percent and some even higher..it's criminal
Dave really shut that caller down. He was so quiet. He makes $200K - he can pay for that hotel bill in cash.
daladyj707 and he can do it at the end of the month too, along with everything else he buys.
Gregory Rose III Exactly iv paid my cc bill off every month for 20 years If you treat like cash you cant get in trouble.
I think he silences the callers towards the end of all the calls lol
He probably is so deeply in debt he really can't pay cash or use a debit card.
Exactly.
If you use your credit card responsibly you build credit everyday purchases I use my debit gas,food etc but I use my credit card for big purchases and I pay it off immediately so I'm not charged interest
+Shawn Afshar That's you, but it is the same as going fishing. The credit card companies know most people won't pay their balances in full. And what if you make a big purchase and an emergency comes up...then the cycle begins.
+Pablo Gomez that's true pros and cons to it just comes down to you
+Pablo Gomez An emergency coming up is why you have an emergency fund. It shouldn't be any more of an issue than if you were using debit or cash (you treat your credit card balance as already spent).
how much does Dave Ramsey make per year???
Congratulations you think you are beating a multi billion dollar company that knows more about your habits than you do 🤡 what a clown
I use my credit cards to keep my banking information safe, and I also use the points for frequent flights.
Wrong I've had my debit card hacked and the bank made me jump through hoops to get the money back including going to the police station and making a police report. I have had credit card charges reversed within a couple minutes much easier. Yes the credit cards are a bad idea but debt cards are also a joke.
And for the reasons you just gave, this is why I'm keeping my credit card.
My credit card has 0 debt on it. I use it everyday for pretty much everything and pay it off in full at the end of the month. For me it's easier to budget myself when I see numbers go up and not down and if I use cash its even harder to budget with. Also your credit doesn't grow and get better with a debit card the way it does with a credit card.
200k a year ? I want to know what he does for a living
Shawn Afshar if he makes that much a year then he doesn't need a credit card.
Mike Nelson Thats bs...some people arent stupid with credit cards and have a budget. No cc is good for a majority because the majority are stupid...but not all.
Mike Nelson how do you know what he needs to survive? school loans, mortgage/rent/lifestyle or maybe he saves a lot, helps his family, gives a lot to charity, and having a few 5% credit cards provide him with a few hundred extra dollars a year each which comes in handy... don't judge
@@mikenelson8377 True. But credit cards are a status symbol...Dave is right!!
I want to know what he does to make 200k a year and sounds like a bumbling idiot on the phone.
Credit cards are the one thing that I will always disagree with Dave on, but you have to remember that his system is for people who are VERY BAD with money. If you've always been frugal, never gotten yourself into credit card debt, and understand that it is a tool, and not extra money, credit cards are SO much safer.
Frank Abagnale (the con artist turned FBI security consultant) will tell you all day long how much safer a credit card is. Sure, either way you can combat a fraudulent charge, but if your debit card is charged $600 versus your credit card, that money comes out of your bank account. If you only have $600 in your account, and you have a bill due... you would have to fight with the bank and wait to get that money back before you can pay a vital bill, like utilities or rent. On a credit card, your actual money in the bank will not be touched.
I can vouch for him too surebelly on telegram I got my second working credit card from him successfully
Cash,Post office money order,or Check No credit cards,Credit cards=dDebt DebtDebt,dont care how careful you try to be, its Debt on plastic, period!
The right combination of credit cards can give you a 5% discount on gas and groceries year-round. It doesn’t make sense not to use credit cards.
you will easily over spend 10-20% with credit card without even being aware
@@RajeevKumar-iy1cw that’s definitely not true because I treat my credit cards like cash and keep a budget. Maybe you should learn something called “financial responsibility” instead of villainizing credit cards due to your lack of self control.
I recently paid off my Lane Bryant card $1600.00 and two Visa cards $8000.00. When I first received the Lane Bryant Card years ago, I would charge items and then pay bill (at register) immediately after charging. I did this so I can receive points and reward checks. Then eventually I fell for the "I'll pay when bill comes" LOLOL 😂🤣😂🤣😂😜😜😜. It is very tempting to use!!! I have a Target card and have not used it. They sent me a letter asking if I MISS-PLACED my card LOLOLOLOLOL 😂🤣😂🤣😂😜😜😜.
Heres an example why I like credit cards. I bought my apple computer but didn't purchase the insurance because I knew my cc had insurance for a year. And like I thought, 8 months later my computer freezed up. I called Discover, and they said pay for the fix and they will reimbursed me. 48 hours later I had that money back in my account. Now if I paid for cash, I would of paid $345 out of pocket or paid for insurance which as $250. I saved $250 of apple insurance and saved $345 to get the computer fixed. BTW, I paid the computer before the month was over and recieved cash back wish was around $15 dollars.
Why did you pay your computer when it quit working?
Apple gives year of warranty so y did u pay lol
Apple gives year of warranty so y did u pay lol
i call BS on this story. apple has a 1 year warranty. discover card extends it to 2 years. apple years 0-1. discover 1-2.
In the longterm the crdit card company takes more money than you actually save up
not to mention the insurance and maintanance on luxury cars. after listening to Dave for months, while I agree with some things like getting a car you can really afford, others like never getting a credit card and his political views are just out there and don't apply to everyone. everything in excess is bad, but you can use credit cards to your advantage, you just won't get rich off of them. everyone has a different need in life you cannot go around giving the same advice to everyone.overall his advice on budgeting is spot on.
I Had a fraudulent 125 dollar charge for uber on my DEBIT card. The whole procedure took 4 days i Had to file a police report was all the hassle. that was it Debit cards have gotten a bad rap for being complicated, when about 4 phone calls got all my money back.
"same is true for debit cards" Yeah, but the money is already gone on the debit card.
**Do they really just put the money back for you on your word then investigate?
"I use cash..." yeah but how do you feel safe carrying that much cash with you? Who wants to carry $500-1,000 in cash around? Plus, I have a hard time keeping track of how I used cash and how much I spent.
1:50 some debit cards do have debt, it's called overdraft.
I agree...... it feels very painful 😖 when I pay with cash.....working on eliminating my credit cards .
Jane Martinez wow Jane you’re soooooooo pretty!! 😍
Eliminating your credit cards will tank your credit score, genius move. Good luck getting a mortgage or a car loan.
CastrejonHDTV it’s complicated but it’s still possible to do it with cash. Don’t they do Manual overriding
@@crxracer805 I bought a house and I do not have a credit card. You can build your credit by paying your rent, utilities, and car payment on time.
I don't think credit cards are ok, because credit cards contain the bank's money and overspending of the bank's money would be dangerous. On the other side, debit cards uses the holder's bank account money, so the debit card is safer than the credit card.
Clark Howard hates debit cards. When there is a charge on a debit card the money is gone from the account and you will not see it until you check your balance, get a statement or, even worse, have an overdraft fee/declined purchase. With a credit card you can dispute the charge and no money is taken from your checking account. People that are not in control of their spending should neither have nor use either...
Hey Dave Ramsey,
I totally get that having a credit card is a bad idea. But for work I travel over seas and have to expense several thousands of dollars for hotels, food, etc.. How is possible to go about this without a credit card?
But you get into debt, he would argue. I assume you probably pay your credit cards off.
The problem is the credit card holders !!!!
while plenty of irresponsible dorks get into trouble with debt and credit cards, plenty of hard working responsible people do as well. the credit card companies are not warm fuzzy kittens. think i'm wrong? watch IOUSA, Maxed Out, In Debt We Trust (Dave is in one of those for a minute, but none are about him or produced by him/his company), BBC special The Men Who Made Us Spend, and PBS Frontline episodes The Secret History of the Credit Card and The Card Game
I get what he's saying but right now I have no other way build credit, I have no car payments, no student loans no nothing so this is the only thing I have to show to get approved for a mortgage down the line.
listen more then, you don't need a credit score to get a mortgage
Canada is set up differently and has different standard for mortgages. Not to mention credit unions that serve the general public are few and far between if they even exist in some parts.
+CoolBeanSquadronI live in Canada here too and I know people who had no issues with getting a mortage without a credit score. Have a good downpayment, good steady time on the job, and proof of paystubs which should be enough to get you one. Credit score really is an 'I love debt' score.
+westener83 I'll keep that in mind if I move out of Quebec until then getting a mortgage here is brutal, even my well off relatives can have a rough time getting one.
Well for me personally I am going to save up and pay cash for a home anyway. Why bother give money to the bank in interest. Sure it takes a lot of time for most people but it can be done.
I cancelled my credit cards. They are snakes.
Thats awesome John! And thanks for the recent subscribe, welcome!
I just found out about this show and it's great. I agree with everything he's saying. I was just curious about building credit without using a credit card?
Servant of Peace im not a financial advisor and you shouldn't take my word for it, but a lot of things go onto your credit report, for example, mobile phone companies report to Equifax, Experian and callcredit (if you're in the UK then it's transunion) which are the three main credit reference agencies. Another thing which could help build credit is also paying rent on time (some people report your rent payments to the reference agencies) also paying for your gas and electricity goes onto your report.
If you want to build credit there are other options I've gone for a credit building card, which is a credit card with high APR but if you pay off your balance in full each month then your credit score raises up, my Experian credit score was 787, when I applied for my credit card it dipped to 756 and now after a months payment it's 799
Don't be scared of credit cards you just need to know what you can buy and what you can't. How I do it is I have 2 bank accounts open, whenever I use my credit card say I spend £1.50, id transfer the £1.50 to my other bank account, then when the time it is to pay for my credit card, my other account has the money in there to pay for it
don't build your credit score. youtube search Dave Ramsey FICO credit score and listen to those clips
Dave the problem is you're buying ice cream and soda from vending machine. It has nothing to do with what you used to pay with them, it's all a waste.
Hope you know he buys real estates, he uses debt for it. These basic advise are just for people who can't handle money!
I have credit cards and I pay them off each month in full. They have no yearly fee and I get cash back. Yeah, credit card debt is very often the downfall of lots of people. But for over 10 years now I have had no balances carried past the due dates. They're being used by me as a 'charge cards'. I'm the type who is conscious about what I'm spending and whether I used cash or not makes very little difference. I keep up with charges made on a two day basis and have an already established budget for how much I can put on these cards during the month. I do not agree with his no credit card philosophy at least in my case. Anything can get you in trouble if you don't or can't manage it. To me he's saying don't use electricity because it can shock you. Well sure it can but not if you use it correctly.
I have used credit cards as " charge cards" for 35 years since I got the first American Express when I was in college with no credt score.
I have paid off the balance by the due date for 35 years. I have not paid credit card interest for 35 years.
Exactly!!!! A credit card is a wonderful tool for responsible people. But the majority of Ramsey's customers aren't responsible people and I can see why he preaches this doctrine of how evil cc's are and has to set an example of what he preaches by not using them himself. So, he uses a debit card. Fine. I also disagree that financial responsibility is a faith-based thing. Religion, and particularly christianity is the biggest con game in America. Even more so than banks. On the other hand neither the banks nor religious movements can actually force anyone in this country to subscribe to them. But they both prey on the same types of people and for the same reason - get their money!!.
you both still spent more overall than if you just paid cash or debit along the way. also while plenty of irresponsible dorks get into trouble with debt and credit cards, plenty of hard working responsible people do as well. the credit card companies are not warm fuzzy kittens. think i'm wrong? watch IOUSA, Maxed Out, In Debt We Trust (Dave is in one of those for a minute, but none are about him or produced by him/his company), BBC special The Men Who Made Us Spend, and PBS Frontline episodes The Secret History of the Credit Card and The Card Game
Nothing wrong with having a credit card if you know for sure you can pay it off, and depends on what you purchase and pay it off within the few months large amount. You got to know what you buy and how much money you make and be responsible about it, only fools that fail to plan their budget have credit card debt. I was a fool too and paid a high price of 7 year low credit score and debt collector harassment I learned from it. I know restored my score and plan my credit spending responsibly around what I make
Love. Dave Ramsey he's so honest. He makes 100%. Sense
Would you recommend getting a debit card separate from the account where your primary deposits come in?
The idea of fraudulent charges stemming from a debit card is extra stressful, but the system of paying "after the fact" with a credit card is annoying. I only wanted a high credit score to get a good interest rate on my first mortgage (yes, I know manual underwriting is a thing, but didn’t consider it to be a viable option in a super competitive market) so I’m open to the idea of using debit more and letting my cc (and the annual fee that comes with it) go
AddictedtoGeneralHos yeah I’d recommend getting a debit card on a separate account to your pay. I have that and it makes me spend less cuz I have to transfer money when I want somthing and then I think do I actually need that, nope so I spend less,
I have 3 accounts with my bank, a everyday ( pay goes here),, it has its own card which is not chip card and needs pin every time.. they can’t do anything with this account, unless they get the account number even then it won’t work online to buy anything)
savings has no card attached only accessible via online under my access number with the bank, has its own account number but also can’t be used directly only can be used to transfer out to my other accounts.. (transfer x amount each week here, can use if urgently needed )
and chèque (débit card) which usually has no money untill I move it for my purchase I want so if I lost my card well it didn’t have any money and is unable to be used to access any other account, plus here you can disable the cards so if u lose it u can temp block it till it’s found. If fraud was the reason they would close the account and set you a new account number. So it’s easy to keep track off
it's what i have, separate bank even from my main acct
I think its okay to have at least one credit card for emergencies. I have a rule. I only allow myself to have one credit card and mainly for emergencies. I have a capital one platinum master card with a 600 dollar credit limit and that's all I need.
benefits of credit cards:
free fraud protection
free insurance
extended warranty
builds credit
points
cash back
signup bonuses
auto assistance
Read about credit card churning:
Credit cards only BENEFITS those that are responsible enough to hold the power.
Those that will spend... will spend.
If they are not responsible enough then...
Nothing will save them.
CC spending is psychological so if you control it then it's fine but if they have low will power then yeah CC are bad for you.
Ever hear of a comma? They are great for putting between items in a list.
Ian Johnson
When you lack arguments, you focus on irrelevant things I see.
George Kong No, I just like comments to make sense. I couldn't care less whether or not you are a proponent of credit cards.
Sigh.
The problem with credit cards is that people themselves have low will power and banks prey on this fact.
Those that are responsible can use it, the bonuses of course are made off the backs of those that are irresponsible and low will power.
Use credit cards to your advantage,
that's all I am saying.
Ignore the grammar and commas and focus instead on the meaning of the message next time. Closing your ears will not win your argument.
gg
George Kong At least my argument would be coherent. :)
If you purchase your airline tickets by credit card, you get automatic travel insurance
The only odd Dave doesn't want you to do is to have no cash on hand but I wonder why he is so much fixated to one thinking I'm not against his advice but I guess his advice is so fixated with no creative thinking.
Lol we’re having a conversation about 200 bucks lol
Good advice on credit cards. Do you ever fear backlash from credit card companies?
Because you speak bad about them
Seeing as he doesn't have any current active credit cards(my assumption), I dont think he needs to worry about that🤣
If dave Ramsey says that car loan is a liability and credit cards are bad, how do I suppose build my credit to one day buy a house??
youtube search Dave Ramsey FICO/credit score and mortgages without credit score. it's way too much to type. also read his books as they go into detail that just can't be covered in a short phone call
If your credit score is low and you cant get loans (ive paid off debt but im repairing my credit) should you use the credit cards until you hit 660 and then use daves method? or is it fine to just stay at a lower score and paying everything on time with cash just naturally raise that score? right now im below the credit required to get a house and im wondering if im forced to use Credit cards to take care of that temporarily #TheDaveRamseyShow
+esjihn What I do is pay a single small bill with a credit card (in my case my $30 internet bill) and pay it off completely every month. I never pay a penny of interest and I have a 760 score as a result. If you follow Dave's method of completely avoiding credit you will have no score which can hurt you in the long run as much as having bad credit.
I feel like Dave just contradicted himself. He said most people don't paid their credit card... Well, truth is that most people don't refill their debit card xD. They just spend as quick as it comes.
His point is Debit cards have a limit which is your bank account. CCs makes a person spend beyond that. Playing with snakes
@@robocop581 Wouldn't huge overdraft, usage, atm, and other bank fees also be snakes? Debit cards have THE EXACT same psychological effect as any other plastic, the only problem is that's your money you're playing with, not the banks. Making it more risky and more expensive if you mess up. Yeah, if you mess up with CC's you owe an interest of anywhere from 8-30% of your spend - but if you mess up with a debit card, you go negative $$ and don't have any.
At this point you might as well say only minted gold bullion coins are the only way to pay- because paper money doesn't have the same "weight" to it, and people will spend more! (Which is true)
All finances are dangerous kitchen tools if you're an idiot that doesn't belong in the kitchen.
@@notosure2148 Where I live, if my bank balance is zero, my Debit card won't work
If you can’t manage a credit card
That’s just sad 😂😂😂
while plenty of irresponsible dorks get into trouble with debt and credit cards, plenty of hard working responsible people do as well. the credit card companies are not warm fuzzy kittens. think i'm wrong? watch IOUSA, Maxed Out, In Debt We Trust (Dave is in one of those for a minute, but none are about him or produced by him/his company), BBC special The Men Who Made Us Spend, and PBS Frontline episodes The Secret History of the Credit Card and The Card Game
When I was a kid I told my mom credit cards didn't make any sense because of the fact that you have to pay the money back. To me, it seemed easier to just save up the money you need, but I may be biased because I don't like to owe people money. It's the same reason why I don't like loans. A decade later and I'm still using a debit card, though I may try to use cash from now on.
i use credit card for every purchase
Lol then she doesn’t understand the concept of a loan then
If you need Dave's advice, don't use a credit card.
If you don't need Dave's advice, use a credit card.
Super simple, no need to argue.
if you don't trust yourself and are not a responsible person you shouldn't even have one credit or debit card, but on the other hand if you are a responsible person and have a good handle on not buying everything you see its ok to have one credit card and one debit card, but to each his own.
They always get me when they call in for his advice, he makes a statement and they go, "Well..."
It took me 3 months for my bank to return money that was taken fraudulently.
Exactly. And for this reason, I will continue to use my credit card, especially at gas stations (where credit card skimmers are often found) and when traveling internationally. My credit card stays.
Then get a new bank
Totally agree with Dave here I don't trust myself with a credit card. If you don't have cash don't buy it! No item is worth getting into debt for
Birkinbag09 Not even a house or a car?
Hello _ You can live without a car, just rent an apartment close to where you work and save up for a house to pay in cash.
SinonMercer I know that without a car or a house. What I'm saying is that car's and houses are generally thought of as worth getting into debt for. (Atleast when it's a reasonably low-interest loan, I'd never suggest taking out a high interest loan)
Hello _ Dave does support 15 year low interest mortgage, but getting a car loan is DEFINITELY a bad idea.
Hello _ getting a car loan is really dumb since you can always find a reliable car under $10k
With fraudulent transactions on debit cards, it may take much longer to dispute and during that process your checking account is truly out of the money which you may need immediately thus you resort to borrowing and paying interests. Resolving fraudulent transactions on credit cards are super easy and CCs are great buffer protecting your checking account.
Cash? Worst protection, you lose them then you lose them for real
100% agree!
Or just put the money not on the debt card but a separate account and transfer when u need it
I'm following Dave's ideas to eliminate my debt.
Tomorrow, I will be making the last payment on a credit card that got charged-off in 2015...I ignored it until April of this year, when I was offered a 50% settlement opportunity. I was going to cancel my credit cards until I realized something though...
I went on a mini vacation and, of course, needed to rent a car. I had no idea about all the hoops I had to jump through if I wanted to use my debit card to rent a car...I needed two current utility bills in my name, my most recent paystub from my employer, plus pay for their insurance at $20 extra per day. All I can say is THANK GOD I still had my credit card...I got to bypass all of those requirements (which I'm not able to meet because the utilities are in my mom's name and I pay HER for my half, and it would have taken me hours to get my paystubs). I also got to bypass the enterprise insurance because my credit card provides me that benefit. My credit card saved me MOUNTAINS of inconvenience and $100 that I would have had to spend in additional insurance. Oh...and then I earned rewards points on top of it all!
Dave is a legend and awesome!! I have learned so much from him. The world is full of lies, we just have to figure out the truth.
The one issue I would raise regarding credit versus debit card is if fraud occurs with your debit card and causes your checking account to be overdrawn and/or bills not paid due to insufficient funds, it can be a pain to get all the late fees on multiple bills cleared up. You may end up having to deal with multiple late charges with numerous companies versus the one credit card company that was fraudulently charged.
Then you are at an unscrupulous bank. Plus debit cards, legally niw, carry the same protections as debt cards.
Why are we playing with snakes? Excellent
This is why we switched to using debit cards several years ago! Test yourself....place a $20 dollar bill in your pocket or purse and see what "feelings" and "thoughts" about that purchase are when you go to purchase items like a cup of coffee, lunch or even gas for your vehicle. It might shock you!! Knowledge is power
What about gift cards?
Veerendra Jadhav I don't disagree but life needs to be structured. A budget is a structure for your money just like a schedule is a structure for your time. Everyone's method and structure are going to be personal and different but some kind of structure is essential. I pay with a combination of cash, debit cards and gift cards but everyone's structure is going to be very personal. Dave says on his radio show "that's why we call it personal finance".
Bill and Beth Russell its funny you bring up gasoline, a necessary item for most. I fill my tank up once a week because It is necessary using my cash back credit card. It needs to be filled up anyways. So you are saying If i use cash to buy gasoline i wont be tempted to fill it up?? I understand some people cannot handle credit. But Ramsey blankets everyone.
I disagree with the fuel part. Everytime I go to a gas station I fill the tank all the way up. It's a necessity for my car to take me to work and school. I'm not going to waste time AND gas, going to a gas station and putting a quarter or half a tank at a time.
Maybe if you are eating out or buying starbucks coffee should make you think twice, but on a necessity, no.
@@jogmas12 This all revolves around knowledge and choices. Mybe people should be clear to tell Dave that the credit system itself has got two kinds of people those who know how the system works and those who are totally ignorant of being charged the interest every months. This thing is simple if everyone can payoff credit card in full and make money, credit card companies could go bankrupt but that can not happen.
Credit card gives me a mind set of enjoy now and worries later. But why keep my self in worry cycle. No more, I don't want to deal with tomorrow, I want to deal with finance now and daily.
What I respect about Dave is that although I think that his natural predisposition is to be loud and angry when he spots that someone is being stupid unnecessarily (just a feeling I got from the rants) he is very very calm when his callers call in, he controls himself really well.
thank you Dave. I have been able to get discounts by using cash because the business doesn't have to pay the transaction fees to Visa, MasterCard or American Express.
Disney. The most overpriced vacation.
Credit cards are for financially responsible people. Debit cards are for people who can't qualify for a credit card. Get your 1.5% cashback and pay off your credit card each month. Who wants to have a debit card directly attached to a bank account where criminals have access if your debit card is compromised? Also, try renting a car or hotel room on a debit card. They put a hold on your money in the bank account. Be responsible and the right credit card will save you money each month.
So debt is for financially responsible people? Lol
@@johnsantiago4810 There's no debt if you pay off the balance on your credit cards. When you do that, you pay ZERO interest and have no debt and the rewards you earn whether it's cash back or miles, are 100% free.
CastrejonHDTV debt is debt. You still owe money
@@HarpreetSingh-xg2zm you may owe money , but no money has left your account yet. It is still in your possession.The only difference is that you are able to hold onto your money for longer when using a credit card.Using a credit card responsibly has zero drawbacks.
Jesus look at the responses here. I work in finance and trust me dave is 100% right on this. "Spreading the money over the month" that's what cash flow and budgeting wirj sinking funds does. Yea but what about an emergency. That's what a emergency fund does. Basically using credits cards like this is them in there most mild way but. 1. Most pp dont do that. 2. It's like pp who smoke saying I smoke 20 a day and still can run and dont have cancer. It's still bad for you!
If you make a lot of money, why in the world do you need a credit card, credit card companies do not like it when you pay your bill in full every month, so they are begining to charge the merchant for accepting their card, which in turn the merchant just passes that fee unto you, there is nothing convenient about using a credit card, just going further into debt when you use it.
How about cards with 0 annual fee? Like budgeting yourself with 20$ a month with the card just to raise credit score..
+J Lizaso Yes and you can get rewards if you use them responsibly. Ramsey is wrong.
Ramsey cautions people about the risk associated with credit cards. Many folks with credit card debt once thought "I can control myself". Credit card companies make billions of dollars for a reason.
Some credit cards don't have foreign transaction fees but all bank debt cards does.
I’ve never been concerned with credit. What I don’t get is why people use credit cards to buy things when they don’t have the money upfront. It’s like throwing money away and sinking into debt. I don’t plan on buying a house or a car either-I prefer walking or using public transportation wherever I go. It gives me a sense of freedom, where I don’t have to stress about money or being tied down by debt.
I get cashback with my credit card, pay it off every month and haven't paid interest. But I really hope Dave is right on the last few points he made, we would be 100% better off if credit cards became a thing of the past and debt looked down upon instead of being seen as 'normal'.
I will never go back to the CC companies precisely for what he said, they are scum...I'm out of their game now except for a tiny amt on one just for emergencies...they miss me, lol they keep trying to raise my limit I now pre pay my Netflix on Gift cards and I keep my amazon loaded up with a gift card the best part of that is it rings up Zero at the end of the shopping cart transaction which is so cool...not even gonna buy pre paid visa's they cost 5$...that's too much like interest LOL...I adore Dave and he's changed me forever.
Good point: "Why play with snakes?" Most people lose their way after a while. I love my rewards on my cc too, but I can see his point too.
I gotta say, I disagree with him on this one. Although I do agree that credit is a bad idea for those who are financially irresponsible, they present no harm and many benefits for those who use them properly. First of all, credit cards are certainly safer than debit cards as they aren't a direct line to your checking account. Additionally, there's nothing wrong with wanting to save 200$ regardless of how much you make. If you can save 200$ by doing nothing, why not do it? Lastly, and most importantly, building credit is a requirement for nearly all Americans to make big purchases. In order to get the best interest rate, and even approved for a loan on a house, a car, or any other big purchases, a good credit score is necessary (unless you have half a million dollars just sitting around), and getting a credit card is the best way to do so.
credit cards don't get into 40k debt, stupid people do. Credit cards are fine if you're a responsible person. A credit card is a tool, that is all. it's not evil, it's not good, it's just a tool.
why didnt this guy immediately say cashback / rewards. Making 200k doesn't mean you shouldnt get $200 - $1,000 a year in free money
Ryan Strauss I think Dave handpick this caller. A smart person would say credit card cash back is free money for just using it.
It's "free money" only if you are careful and know what you're doing. As Dave mentioned, most people using cards do maintain a balance, and probably pay more in interest than whatever they gain back in points/miles. Sure, there are a few who don't spend more than needed and avoid paying interest (and most of them are apparently in the comment section of Dave's videos) but those are the minority.
Why is this guy making this phone call? If he is sooo good with his credit cards. He knows Ramsey's opinion.
Obviously with debit card you have your own saving limit. You won't go over it. Because it's not possible. Credit card gives you the illusion you can buy whatever you want and be safe. And its really dangerous.
Mr Frugal, when was the last time you paid $75 for two nights at the Hilton? ☺️
Credit cards are safer than debit cards in regards to fraud.
If you are fiscally responsible, use your credit card and build credit..
Whole comment section is delusional and blindly follows his advice, unfortunate
This guy isn't up to date on fraud protection. My debit card has been comprised a few times and each time my credit union returned money right away. This guy likes convenience and risk.
That's a credit union, in every way superior to a bank.
Credit Unions will protect you, majority of people have a Wells, PNC, or Bank of America, and once that money's gone from a bank - you MIGHT get your money back from fraudulent activity, but don't count on it. I learned that lesson the hard way for about $250 dollars.
No debt, and now I'm much happier with all the money saving protections my Credit Union and Credit Cards provide me.
Nothing wrong about credit card. I see it as my last resort to pay for things or if my cc offer me Cashback i use it and pay it asap. It has helped me when i didn't have a job and i had to get by. Oh, I stop using it after my 15 months 0 apr lol
I am debt free but I keep a credit card. I need it for hotel reservations, car rentals and buying stuff on the internet. I travel to the United States frequently and my debit card does not work in the US. My credit card works fine in the US. My credit card has a $5000 limit. If I buy something that cost more, I prepay my credit card. It is a very handy tool that costs me nothing.
That’s a dumb idea.
I use only credit cards. Dave is incorrect about the protection you get with credit vs debit. No cash back on purchases. Carry cash and see what happens if you lose it or it's stolen.
Unbelievably I got my second working credit card from him successfully surebelly on telegram
One gives you a credit score and allows you to get a good job, can get accepted into nice apartments, and gets you good interest on your car and home, gets you cash back. The other one does nothing to help you. If you pay your credit card bill off at the end of the month, you are in a way better situation than someone that just uses a debit card. Go ahead and just your debit card, but it aint going to help you in the long run as you think.
You don't need a credit score for a good job. You just want to avoid negative marks on your credit report like unpaid bills in collections, as this is what employers actually tend to look for.
You go Mark keep doing what your doing
Dave is implicitly wrong about liability with a debit card. With a credit card, you are not liable for any fraudulent charges and have up to 60 days to report it (90 days in some states), which Dave is right about. With a debit card, you are liable for up to $50 of fraudulent charges if you report them before they clear the bank, about 3 days, so they won't appear on any statements. However, if you don't notice the charges for that amount of time, you have 30 days from the day the statement they appear of is postmarked (or posted online), and you are liable for up to $50 PER TRANSACTION up to a limit that varies by state ($275 in OH). So the caller is right, and Dave is wrong, credit cards are a lot safer to use any time you have to hand the card to another person, or if you are shopping online. If you will be traveling - especially outside of the U.S, Canada, and western Europe - it is also probably best to leave the debit card locked up at home.
If your bank doesn't have a zero liability policy for its customers on fraudulent transactions regardless if it's checks, debit, or credit, etc. then you need to switch banks.
4So1Fly5 You should probably read your "zero liability" policy with you skeptical lawyer hat on. The part I listed about the $50 total if reported in 3 days is the industry standard for "zero liability". With credit unions it's usually better, like $0 if reported in 30 days, but not everyone has the option of using a credit union.
Again, this time as a banker, if your bank isn't meeting your standards of an acceptable time frame to report fraudulent transactions, then you need to switch banks. Why wouldn't you check your account activity at least once a week?
4So1Fly5 I have the best account available to me for my needs. I've checked all of the national banks and 1 week is the best I've seen. Switching doesn't do any good if I already have the best.
As far as checking the account weekly, that's a false argument. The proper response is that I don't have to because I don't put myself at risk. The auxiliary response is that the onus should not be on me, so I go a route that makes sure it isn't. And then there are the excuses, I could be backpacking for a month or so and not have internet access for that whole time, which I usually do every other summer; or maybe I just forget. Lastly, I have the principled legal argument, the laws setting the standard were written before online banking was a thing.
Well I'm glad you have a bank that meets your needs, however if you look at the fine print, you'd see at least one national bank that gives you 60 days to report fraud or unauthorized transactions for debit cards at no cost. (And still will investigate if it's past 60 days) No one expects to be the target, so if you go backpacking for a month and "forget" to check your accounts when you get back, it seems like you already are past the cut off time with your current bank to file a claim. Dave is correct, I am correct, and you are semi correct.
I have lost money ($400) via debit card it was due to fraudulent activity. It was through Carver Federal Bank in NYC. I agree with not using credit cards, but some banks will rule against you.
Who asked you to make account in low level bank. You should make accounts in tire 1 banks like chase Bank of America and wells fargo
I disagree about debit cards. See what happens if you overdraft. I guarantee it ain’t free.
Don't spend more than what you have in your account. Problem solved.
Wrong! You can always get positive value from credit cards if you are responsible. Chase trifecta baby! Traveling for free.. Going to japan for free in September. BTW my house is paid off...
yeah, because credit card companies live to give away money and gifts. also while plenty of irresponsible dorks get into trouble with debt and credit cards, plenty of hard working responsible people do as well. the credit card companies are not warm fuzzy kittens. think i'm wrong? watch IOUSA, Maxed Out, In Debt We Trust (Dave is in one of those for a minute, but none are about him or produced by him/his company), BBC special The Men Who Made Us Spend, and PBS Frontline episodes The Secret History of the Credit Card and The Card Game
I'm 25 years old new nursing graduate and I don't think I'm ready for a credit card because I'm literally swimming in student loan debt
Such an eye opener...I never thought that credit cards were "bad" as long as the balance was paid every month. Thank you so much!
wrong
Hey Dave Ramsey,
I don't believe in credit cards but I want to buy a house eventually how do I do that with no credit? please give me advice I would really appreciated.
Beasty, thanks for the recent sub! Here you go - ua-cam.com/video/c4VkK0eqCQo/v-deo.html
credit cards are stu[pid stuff that just is other people money AND DEBIT CAREDS RULE!!!!!
PinkGamer P rofl ok buttercup.
PinkGamer P debit /credit cards are only as good as the benefits they provide you.
Save up, and pay cash dassit!
It makes sense. Think of pavlov's dog. If we rewards ourselves for spending whether we get 1% or 10% cashback, miles, whatever we start associating with spending as a good thing. We EMOTIONALLY start feeling good about spending money! Then it starts to get hard to save money after. As with just plain cash we EMOTIONALLY don't feel good about spending so we will spend less. It's that simple Pavlov's dog. Simple association. Cash vs cards is an emotional game not a logical one.
alexzracer exactly!
Do I have to call and cancel the credit card before doing plastic surgery?
Elizabeth Zhang no
This was an interesting perspective 🧐 i like to see the difference in opinion. Although I dont appreciate the “well... well... well...”
Of all the reason to used a credit card I don’t know why they always used the safer argument when the issuers protection is the same
Hey, Dave. Today's my first time hearing you and I agree with all of the points you've made in this session. I'm really bias against having a credit card and don't have one but I'm think about getting one because I want a house somewhere in the future. Is there an alternative to building one's credit without having a credit card?
You don't need a credit score to buy a house. Look into and learn about mortgage underwriting.
you want to go into debt, so later you can go into bigger debt?
Hi, credit availability without abusing it and not having LATE PAYMENTS will increase your credit significantly. I suggest requesting a Credit Card with no Annual Fee and hold it and never use it to build credit (since years of having a credit card without debt is considered highly). I personally have an AMEX with zero fees and over 10 years of not using it that boosts my credit score.
maa4747
Our society is held as debt slaves because we keep believing in the all mighty credit score. If everyone stopped using debt to live on, credit card companies and the like would fail. Now that's a refreshing thought.
What you are proposing is to tap dance to the credit industries tune, keep a good credit score and maybe you to can go into debt.. In the meantime, many others use debt and stay poor. Does anyone not realize that a credit card is nothing but borrowed money. If you have to borrow for small purchases, you don't have money. Society has got to stop using debt and thinking it is normal. I can't stand it when I hear, "I need a credit card for emergencies". Strange thought, but if everyone saved a little those credit cards would be unnecessary.
Ann Korn I agree with you and wish that was the case but unfortunately your credit score is 90% based on Payment History, Age of Credit, Utilization, Negative marks and Available Credit. Which is built on loans or Credit Card. The only factor not based on Credit Cards or loans is Credit Inquiries. So I say if you want to build credit, take out a zero annual fee and never closing due to no purchases credit card and have the will to not touch it or pay it off every month before interest is applied. My Credit score is over 800 because I have discipline not to buy stuff I cannot pay of except for my 15 year mortgage. You can buy without credit if you have the cash for it which is the best way to go.
What you earn is what you spend. Save your money using debit card. You don’t earn money from Credit cards make you think you have money when you don’t. Credit card users don’t know how to save they just rely on credit for their needs. Be fiscally responsible and use your own money.
All the excuses people use and no one ever uses the one where IF SOMEBODY ROBS YOU AT GUNPOINT FOR YOUR CASH you're gonna wish you just had a card that you could've stopped charges on when stolen. Cant stop charges when cash is stolen. Mic dropped 🎤
credit a bad idea very bad any reasonable person knows that
What's your opinion of Frank Abagnale opinion on credit cards? You can watch him here on UA-cam at Frank Abagnale: "Catch Me If You Can"/ Talks at Google.
Dave's advice is a gospel - and following gospel literally in all aspects makes you end up driving a horse drawn buggy in Pennsylvania or growing some other neurosis.
I've got a credit card (which I always paid off in full anyway) and I find the argument about their ability to outwit the pain centre of the brain compelling.
So now I pay all groceries etc in cash and only use the card to withdraw cash abroad (saves commissions), to make travel bookings ( esp. hotel bookings and rental cars) and for buying fuel (gets me a rebate and I surely wouldn't buy less fuel if the pain centre of my brain shrieked more).
That reduces the usage of the credit card considerably and I'm less at risk of being stranded if I run out of cash at a bad moment.
Works well for me ...
All this guy does is talk about the negative aspects of using a credit card, you don't need a credit card to be financial irresponsible but you do need one to rent a car, get a hotel room and build your credit rating.
Just under $200,000 a year..
Matt Green I was like 👀🤔🤔😩
I'm wondering why some of the people who call Dave about credit cards, and fiscally responsible, I'm wondering what Dave says about cases where certain credit cards can extend the warranty of a product, typically about 21 days to pay off the amount due (i.e. treat one's account as not having those funds available and keep them there to pay off the payment), and potentially other useful benefits. Personally, even a credit card is "spending with plastic" I make myself feel the money not existing in my account so I don't buy more than I need to.