The 8 Types of Credit Card People (Which One Are You?)

[@BuiltNutritionFitness]

Credit cards are like alcohol. Some people can handle responsibility and others can’t and have to stay away entirely.

[@LoyalSol]

It's also like alcohol in that a lot of alcoholics are in denial that they're alcoholics.

[@prakash.srn.17]

​@@LoyalSol the most dangerous and freely available drug 😂

[@OneIncomeSuperSaver]

@@LoyalSolYet not everyone that drinks are alcoholics..Some people have more self discipline than others

[@LoyalSol]

@@OneIncomeSuperSaver And sometimes an alcohol addiction starts as innocent drinking and gradually spirals out of control. Credit cards do the same. Everyone I knew who got stuck with credit card debt "paid it off" every month till some stupid crap happened. I'm going to say with over a trillion dollars in credit card debt in the US alone that more of you are drunkards than you like to admit.

[@fedvvvv]

Great analogy. It't all about discipline and some adults simply don't have that.

[@kenmurray25]

The part George always misses about fraud on a Credit card vs a Debit card is the timing. If someone gets your debit card number and drains the account you will get your money back, but it could take weeks or months for the bank to complete the investigation, what happens when your mortgage is due during that time?

[@DebbieBennett-p5v]

Exactly! Just call your bank, they will tell you it's a harder, longer procedure to get your money back. With Debit cards i looks at it this way...once it's gone, it's gone. I worker at banks and never use a debit card and never do auto withdrawal payments unless there is absolutely no other alternative

[@ThreePuttBogeys88]

It’s been a long time since this happened to me but in 2016 BofA gave me access to the defrauded amount within before the next day.

[@thedude5040]

Eventually virtual cards will take off. Its like firewall rules on your router. Each virtual card can have different rules

[@Shelly_B]

That's EXACTLY what happened to me. I was so scared. My debit card debacle eventually got solved but I had no money for a short time. Frightening.

[@joyfully8802]

yes, too many holes in these arguments for me.

[@andrew_denver_realtor]

Damn that’s crazy… *swipes credit card*

[@pdxmusl1510]

😂😂😂😂😂

[@merc7paul]

*taps😂

[@tyrecarmon20]

Damn I just use my CC right then lol

[@TheSoulCrisis]

🤣😂🤣😂

[@kangyun1985]

Actually my overspend is not credit card. It's free shipping. It gets me literally EVERY SINGLE TIME 😂

[@Nswix]

You don't spend more with a credit card if you budget every month... I use a zero based budget and stick to it.

[@ryannguyen916]

You don’t spend more but still spend faster and less conservative if you use debit card for payment method. It’s been proven. Dave always said spending is an emotional behavior, not a mathematical problem. If everyone is so good at math with credit cards, why 75% Americans do not have $1,000 cash emergency fund?

[@OneIncomeSuperSaver]

@@ryannguyen916Not everyone acts like Dave Ramsey followers. Some of us are well disciplined and yeas we stick to a budget.

[@truthseeker6370]

💯

[@JudeDude409]

@@ryannguyen916you missed his point completely. If I budgeted for 300 dollars a month on something. Use the credit card for that 300 dollars. Pay it off and nothing more on that card. Am I still apart of that statistic if I only use that credit card on the 2nd Monday of the every month?

[@OneIncomeSuperSaver]

@@ryannguyen916 Not everyone lacks self discipline

[@2023Red]

@George. We fall into several of your categories. My fico is 849 and we use one of several credit cards to pay recurring debt. And one for discretionary like groceries and gas. We pay in full twice a month concurrent with income. Our monthly total charges approximate $4000. We see no reason to use a debit card as our cash back is around $200 a month. What are we missing?

[@Snesboy09]

Same. The problem with credit card companies is that irresponsible people don't pay their cards off and us responsible are helping to enable that system. Still, not my problem.

[@libertarian4323]

DR was irresponsible with credit ~35-years ago and got roasted. So he's been on an emotional and irrational jihad against all use of credit, even responsible "pay it off in full" use ever since. George is just parroting the company line.

[@tiffanybagby6868]

The thing that the Ramaey clan always overlooks is that there are those of us who are well aware that credit cards are a form of debt. With that in mind, we know that the more we spend, the more we have to pay back. It actually discourages over and impulse spending

[@chrisforker7487]

A debit card is full access to your bank account! I can live without my credit card, but can’t if my bank account is frozen or zeroed out!

[@prakash.srn.17]

Get two bro. Online one so they waive atm fees and such

[@societykrew]

I remember when Dave was even anti debit card. He said cash was better for psychological reasons despite being inconvenient. Then Ramsey Solutions released their own debit card…

[@thehomeless_trucker]

Ya, he once admitted those studies were all plastic (meaning it includes debit cards) vs. Cash... he said that while he was statistically spending that same 12-18% more, he was personally fine with it. It's funny that the study George quoted never mentioned where debit cards fit into the picture... because it's all plastic vs. Cash.

[@WavyCurlyGina]

That Gazelle debit card didn't work out and they ended that program shortly after it started 👍🏻

[@carlfaitware8099]

He figured out there was profit in them. Also it's getting difficult to walk around with enough cash to get through your day. Finally, given that most of my purchases are done online, I can't exactly send a stack of $100s through the 'puter. If Dave REALLY had his luddite way, we'd be walking through town with an oaken wheelbarrow full of gold pieces. Sorry George, it is virtually impossible to live without a credit card, or a credit score, for that matter. It is terrible financial advice to tell people who are not deca millionaires to let their credit score go to zero.

[@MikeThePike316]

​​​​​@@carlfaitware8099 It is not virtually impossible to live without a credit score. The only people who complain about it are almost never the people with no credit score. It's generally people like you who simply can't fathom it and then assume it can't be done. Also, a zero score (i.e., undeterminable) ≠ a bad credit score if that's what you're hinting at. You don't need to be a decamillionare to get auto insurance without one or buy a house using manual underwriting, which is generally what some people rely on them for (aside more debt products). That aside, Dave is not against debit cards. You can find videos from ages ago where he tells you exactly what's in his wallet, which includes his CWL, ID, and debit card. He's not a moron, he knows they're ubiquitous and some transactions require one.

[@justinjohnson4278]

If anything I swear a credit card is more “painful” for me to spend with, just cause the debt worry is there but it’s not there with a debit card, plus I can earn cash back, my strategy is basically to use credit cards OR cash

[@DragonSlayer334]

90% of people dont use credit cards responsibly, but this is an insult to those of us that do. I literally put every purchase i make into a spreadsheet and follow a budget to a t. I would not spend any less with a debit card and receive roughly $800 a year in cash back.

[@jwil4286]

I’m the same way. I treat my credit cards like debit cards. I don’t go out of my way to spend on my credit cards. I plan my credit cards around my life, not the other way around.

[@simeon_kurosky]

I disagree with the first part. I have a budget excel I update on the daily, and track every credit card expense as if it’s from my main bank account. Because I pay everything off every month. So it doesn’t matter psychologically for me. No matter if it’s on my debit or credit I’ll see that purchase and see my budget categories update the same no matter the circumstances. I wouldn’t but more or less groceries based on “more points” it doesn’t matter to me. It’s literally just a bonus. Because why not take advantage of the cash back or points and help my credit. Takes literally no effort for me. I’ve never held a balance and never paid interest once in my life. Bought every vehicle in cash and just purchased a home, and wouldn’t have been able to get the interest rate I got if my credit was low. Just saying 🤷🏼‍♂️

[@bdorr67]

George's video isn't for those of us who are disciplined with our spending. I do the same as you. As soon as a purchase is made w/ the card, it's pulled from the budget envelope (financial software). It's not debt if we're paying the balance off. I use the free money at the end of the year for Christmas gifts - usually around $1,000 to $1,200.

[@DrJack144]

Exactly. If people budget, the argument that they “spend more” by using a card which is credit rather than debit is nothing more than junk science & also hurts Ramsey Solutions’ credibility tbh.

[@mskuriscak]

keep in mind these studies are around plastic. there is almost no difference in brain activity whether you are swiping credit or debit.

[@DrJack144]

@@bdorr67so can you point us to somewhere where Ramsey people differentiate responsible people & acknowledge that 99% of wealthy people do use credit cards? I’ve never found anything like that.

[@DrJack144]

@@mskuriscakit’s junk science, too. I used to see vending machines at hotels and similar places that have a $5 minimum charge if you use a card instead of cash. So, yes, it looks like you “spend more” when using a card. The reality of the situation is a lot different. If someone buys an extra gallon of gas when they fill up due to using a card instead of cash, please point me to that person so I can meet them.

[@nicolasparra8000]

I agree with most of the Ramsey ways to getting out of debt but disagree with this one. If you are responsible and use your credit card only for bills and pay them off every month no harm done imo but then again there are people without self control those people shouldn’t have a credit card then

[@prakash.srn.17]

It's like responsible use of alcohol. Question of time bro!

[@taurusthebull76]

I use CCs too. They are catering to the masses that contact them drowning in CC debt. I'll more than likely be a CC user for life but a wise one of course. 😊

[@matthewclina4162]

I’ll admit it - I use one credit card. I own a campground, and I stock the camp store by shopping at BJs and WalMart. I use the BJs card and I pay it off with the company checking account as soon as I get home from shopping. There are two benefits. One, I save 15 cents a gallon on gas, and I get 5% rewards for everything I buy at BJs, and some smaller amount on other purchases. The thing is, I’m buying stuff for my business, which I have to buy. I’m paying off the card instantly with business money. I’ve never paid a penny of interest, and in my off-season, I use the accumulated rewards to buy myself groceries for the winter. So, I’m debt free, but I carry about $100 of debt once a week for about an hour.

[@sgtmaj2705]

Being a retired LEO, carrying cash and using cash in purchases in public can get you robbed in some areas. I have a lot of friends that used Debit cards that were hacked and all of their money was taken from their account. They eventually got their money back but it took several days to get it back especially if it happens on a weekend. Traveling overseas in about 20 countries, my friends that were on my team that had debit cards.eventually changed to credit cards due to the extra problems. And for all the commenters that know "everything about traveling and Banking ", I doubt you have been where I have .

[@spbennett88]

Why would I risk a maximum liability of $50 with a lost or stolen debit card when I can risk a maximum liability of $0 with a lost or stolen credit card?

[@prakash.srn.17]

You have that Visa and Mastercard debit cards

[@somerandomnigga]

That must be a US thing because all banks I can remember in Canada all have 0$ liability on their debit cards for lost or stolen cards.

[@ProjectFrugal]

I'm a Number 1 type but I don't spend. It's purely for occasional local/overseas purchases. No fees, no annual fees, always paid off immediately. Never paid an additional cent on it.

[@fedvvvv]

Excellent. Stick to a budget and reap those cash back dollars at the expense of the suckers who pay cash. Then, reinvest those cash back dollars to make even more money. I've accumulated a couple of thousand dollars over the course of a few years. All money you leave on the table if you pay cash.

[@SteveYoung49]

I don't understand why you keep perpetuating the credit card hate other than the clicks. If you're terrible with money, obviously credit cards are bad for you. If you're a money maximizer, credit cards are the best way to go to spend money you were already going to spend (i.e. money in your budget).

[@roythousand13]

Most people are bad with money, hence why most Americans are in thousands of dollars in debt!

[@Ojisan642]

This channel is for people who are terrible with money. Which is most people. Including you.

[@SteveYoung49]

@Ojisan642 There are people who watch this channel who are not bad with money, judging by half the comments, including myself. I find George entertaining. But if you're bad with money, more power to ya.

[@toyguy112183]

If you truly believe you’re the exception then ignore the video and let the 99% of americans learn something.

[@froggore52]

Haven't touched a credit card in 8 years and I haven't regretted it for even a moment.

[@terminaterjohn]

good for you 🍪

[@stewartabernathy6436]

Over 20 years here and the same on not regreting it.

[@merc7paul]

Here's a trophy 🏆

[@StreetCycleSoldier]

Yeah sorry. I'm the exception to this. Others do the same. If you're ok with debit cards, leave responsible credit card users alone. I totally agree that it is predatory. Not my problem.

[@Doracox22]

I recently realized the importance of using credit cards for the majority of my purchases simply because of the cashback and other reward it provides you. I want to be able to get a house on loan and I am also seeking to buy stocks to grow my money as a newbie. Any suggestions on stocks to buy?

[@Richmind-ir5zi]

It's best to buy growth, blue-chip, or large-cap stocks. As a beginner, you should also work with a financial advisor to set up a good portfolio.

[@Mitch10bands]

Exactly! I was managing my own portfolio but faced big losses in 2022, so I sought help from a fiduciary advisor. By restructuring and diversifying my $600k portfolio with dividend-paying stocks, ETFs, mutual funds, and REITs, I achieved an average annual gain of 38%.

[@TylerofSc004]

That's impressive! How can I get in touch with this advisor? My portfolio isn't doing well, and I need help.

[@Mitch10bands]

'Kristin Amber Landis' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.

[@TylerofSc004]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@MrBlue3rd]

I only have one credit card and I'll admit to being the first type of person on his list. The difference being I dont overspend and make minimal purchases using it.

[@BrianHYX]

It’s not about poor vs rich it’s responsible vs irresponsible. I don’t make a lot of money but I still benefit from credit card rewards

[@MinnieOnCam]

Yes one of them for me is free groceries.

[@LiamRichie825]

Same bruv

[@eatpigsnot]

there is no responsible way to use credit cards or debt; just varying degrees of irresponsibility

[@BrianHYX]

@@LiamRichie825doesn’t take a millionaire to get a 740+ haha. Just stick to the budget and it’s gonna be fine

[@LiamRichie825]

@@BrianHYX same. I don’t make much either. I just pay my bills and what I’ve budgeted for groceries/dining/gas and get a little discount

[@joannguerrero5831]

Yep. I was overdrawn every month. I finally realized using the credit card was the issue. I spent too much and by month end, savings had to cover the cc bills. No more! Debit only.

[@alexm260]

Spending “more” on a credit card is fine as long as you’re still within your means. To me, living like no one else means I hit my investing goals, my bills are paid, the rest is for me to use and enjoy.

[@nicodimus2222]

Many things are available for sale online that are not and never will be available locally. Sometimes you have a specific need (or want) that you need a credit or debit card to purchase. As long as you stay within your budget, it's not a problem.

[@tonyx3x390]

George what do you think about Wells Fargo losing money because they are the bank behind the BILT card and people are making their payments on time and the bank has to give the card users rewards?

[@bdorr67]

I have one card. Pay for EVERYTHING I can with it. Never carry a balance.. The cash back at the end of the year covers Christmas gifts. They're paying me to use their card. Been doing this for 10 years.

[@laundrygoddess4]

I'm exactly the same.

[@joyfully8802]

same, 20 years in!

[@erins928]

Same! The little bonus for using the credit card definitely helps out in other areas!

[@VinnieGer]

Which card??

[@chadbailey7038]

You spent more than you would have regularly.

[@TizBaz5]

I use credit cards, use autopay, have never missed a payment, and have had interventions because I have trouble spending any money even when I need to. Using a credit card makes me see my monthly total mounting over time and it keeps me from overspending, as opposed to cash, which I would need to track manually. I think you guys are too dug into your position.

[@instagramdude4784]

Totally agree with you here! Their stance on just abandoning CCs and 'undeterminable' credit score is going to bite them in their A**!

[@donnahampton3632]

I never missed cutting up my credit cards. Living the simple life. The Every Dollar budget app lets me know exactly where I stand.

[@Chet_24]

I use my credit card for online purchases or car rentals. I'm not putting my debit card out there.

[@OneIncomeSuperSaver]

Much safer

[@amwilson195]

Same. I've had my credit card number stolen so many times. I would hate for that to happen with my debit card... my actual money! So much safer.

[@pdmayton]

I'm the convenience card user for sure. I pay it off 2-3 time per week. Basically, if I see a balance, I pay it. It is more convenient. Why wouldn't I take whatever rewards are there if I never buy anything I can't afford. I have a large e-fund. 0 debt other than mortgage. had a card for 17 years, and never paid a cent in interest. I don't really care about my credit score, as I don't use debt, again, except my mortgage. Despite this I do happen to have a credit score of 850, so if I ever wanted to use debt, I'd have favorable interest rates. Maybe credit cards aren't for everyone, but yeah, I don't want to have to jump through hoops to get a hotel room or rent a car. Also, credit cards are unavoidable for me. As a reservist in the military, I'm required to use a credit card on orders. Its not an option. As a government employee for my civilian job, same story. When I have to travel for work, I'm required to use a separate government credit card.

[@dandaab2887]

I'm exactly the same except I just have a routine where I log in every Friday to pay it of. Love the fraud protection where they can't drain my checking account (despite what my final liability will be), never pay interest, only use it for essentials and collect lots of cash back paid by those that do pay interest. I get tired of Georges bi-weekly condescending upload "But an MIT study says you are spending more so you're wrong!"

[@xtrm.mayhem4098]

Capital one and American Express thanks you.

[@williamthurmond4940]

Ditto. Love the free Amazon merch derived from the points my Visa card brought me. Never paid a penny in interest.

[@chazrmiller]

I have done this and my spending habits were the same. Getting rid of credit cards doesn’t fix the behavioral issues that people have with spending money. So for me I spend responsibly and make sure i truly have the money to spend when making an impulse purchase.

[@seanoetting448]

I watch many of your and Dave's videos. I think you guys are putting a great message out there, and I follow most of your advice. I do think credit cards are dangerous for people that can't control their impulses. However, I think you guys sell short the number of people out there that are very deliberate in their spending decisions. I do use credit cards. They are a core part of my budget. They're my "digital envelope system". Groceries are on the card that gets 5% off at grocery stores. Gas is on the card that gets 5% off at gas stations. My home utilities are auto-billed to a card that gets 5% off utilities. The only one that's ever gone over budget has been the restaurant card, and I'm ok with that. I'm a single father, and order takeout dinner one days when I'm too tired to cook. Which goes on the card that again, gets 5% at restaurants. I believe the studies that say spending patterns are different with credit cards. I also see that such studies are going to see what most people do. That means you have a study that applies, on average, to the average, but that doesn't mean it applies to the individual. Your study shows what most people do, so what is most? 51%? 70%? 90%? So if 90% of people overspend on a credit card, I'll just go be in that 10%. Easy peasy. I do hard things for a living, this will be a piece of cake. Here's another point. Not all spending decisions are made at the point of purchase. Take gas, for example. If I pull in a gas station, I''m filling my tank. No mattter what. Gas will cost what gas will cost. You don't go to a gas station and fill your car halfway because the gas budget is gone, because gas budget decisions aren't made at the gas station. Gas budget decisions are made long term, when you purchase a vehicle. You can't cut back on your gas budget by putting in less gas, you'll be stranded (hope you budgeted for road side service). If you need to lower your gas budget, you do that by selling your guzzler and buying a fuel efficient car. I know you guys will never back down from this position, and I think that's fine. I will continue to watch your videos, continue to consider you guys a good source of good advice, but I'm going to continue to get off the bus at the point you continue to take it too far... God bless you all for the great work you guys are doing.

[@donnahampton3632]

That was an awesome guitar & vocal Kamel solo!

[@lonnieswag100]

I used credit cards for 2 months and used my debit card for 2 months and didn’t go over my monthly budget with both methods. Those studies don’t speak for everybody, they just speak for the average of everybody lol cuz I promise you there was people in those studies that actually spent less with credit cards sometimes

[@adamsuttongolf399]

I committed to this like 2 months ago and I am never going back. This has really helped me take control and feel more comfortable about my money.

[@DrJack144]

The Ramsey people seem to be the only ones who know wealthy people who don’t use credit cards. The rest of us all use them 🤷‍♂️. Btw, I have a 7 figure net worth & haven’t hit 40 yet. Guess I’m a bad person for using my 2% Fidelity cash back card on everything.

[@teddyruxpin7876]

I agree, I am 48 and net worth of 2.2M and have been using them for 15 years. Pay off every month, no problem.

[@DrJack144]

@@teddyruxpin7876nicely done!

[@kmech1111]

I do hate it when Dave quotes his study of elevendy thousand millionaires and says not one of them got there with rewards miles. No kidding, Dave? Nice strawman. Nobody's claiming to become a millionaire 5% at a time with a rewards credit card. We're just capturing some savings with an "every penny matters"kind of mindset. Shouldn't this kind of frugality be encouraged?

[@DrJack144]

@@kmech1111 right. Beating the S&P by like 0.1% is critical for Dave (even though his international mutual funds haven’t done that in decades), but overpaying on purpose by 2% on purchases due to refusing to use a credit card is cool. Got it.

[@LiefLayer]

@@kmech1111 Are you dumb? Most people in their program are people that got into really bad debt, people that don't budget for anything and only think about today. Of course those people are better off without any credit cards. And it's true that the rewards system is made to scam people (between points that have arbitrary values, discounts that can only be used in affiliated shops, commissions on purchases that are ultimately reversed on the final cost and obviously the fact that to get a big reward you have to spend a lot, in the end these programs were born to actually be systems that scam people). Obviously if one strictly sticks to a budget written in advance and only spends what already have, that person can earn some small change from this system. But it's not a system made to actually reward anybody. I live in a country where most people don't use a credit card and where the rewards are something like 0.5% of a purchase, no credit score so most people don't even bother with the system... but even if it was 2% or even 4-5% most people will just spend that 4-5% in more shit. Like when there is a sale in the supermarket and most people buy what they don't need even if it was not planned on their grocery list. So even if I got a smartphone by opening a bank account (that I closed after 1 month) and I got apple airpods by opening an amex credit card (that I closed after 3 months) and every once in a while I do this sort of things... most people should not. My friend that tried to do that with me forgot about closing the bank account and now he is paying fees on that (yes, even now he is still paying because he don't really "have time" to deal with closing that account). Most people don't really have the "time" (want) to deal with the burocracy of taking advantage of "sales/reward" program and even if you do sometimes it is better to just avoid them anyway since the reward is usually really low. So of course people that need Dave to avoid debt are not a group of people that should try to "scam" the system... they will be scammed. I myself know that I am not completely immune to the allure of easy spending and spending in affiliated places, and rarely I made impulse purchase... That's why I usually close credit cards after a few months after opening them for the big "first time user" reward.

[@KLC777]

I cut up my last credit card months ago (no balances) and only hit a snafu when I needed to buy an unexpected airline ticket and my funds were in my HYSA. So, by the time I transferred the money to my other debit card the price went up an extra $70 in a matter of two days. So now i just reopened a credit card to avoid that type of ultra rare occurrence in the future. The new credit card tempted me to spend $1K in three months to get $200. I politely passed because I had grown accustomed to the peace of not charging the card and then paying it off (over and over again). I agree, I did spend more when I use to use credit cards. Great video, George!

[@RuefulCenturion]

With the cost of groceries and bills, it's not hard to hit $1,000 in spending in 3 months without even trying.

[@djchancla2451]

Thanks to you & the 12 steps I will debt free next month except for my mortgage

[@anthonybowie4191]

So if you budget in every dollar app and use a credit card do you still spend more? Is that part of the study? Also if you buy from Amazon or basically any big company now days are you not gaining off others misfortunate similar to the reward system argument you gave? So should we never buy from Amazon either? Or should we just buy responsibly similar to using a credit card responsibly? I do agree tho in many ways credit cards are not for everyone

[@cybertoeknee]

Yeah, by their logic of spending more with a card, no one should have a debit card because it makes you spend more. Having a budget to track spending is the important thing regardless of which card or payment app you use.

[@coririch1170]

My husband and I have been committed to not using credit cards since November 2023. I’m happy to report we have been successful and have made HUGE strides in our finances. Thank you for all that you do! ❤

[@DavisBronsted]

I'm over 60 and this is very helpful. Thanks George.

[@BryanPlaysDrums89]

Just because there is a study on shoppers using credit cards, doesn’t mean everyone is the same. What do you say to the people like me who uses a credit card only for necessity purchases like groceries to get rewards, but then pay it off each month? Not once have I ever thought to go out of my budget because I’m using a credit card…

[@tyrrellj1985]

I’m 38 and have never had a credit card. I’ve made some mistakes with car and student loans but quickly paid them off after finding Dave Ramsey. Keep up the great work George! I’m a believer in the system!

[@moneyguy20938]

I believe credit cards are not for the weak-minded. You have to have discipline to use a credit card, but you also have to have discipline in practically everything you do in life. This is no exception. To believe credit cards are bad is to believe everyone does not have the discipline to use them correctly which would be ignorant. We also have to realize who Ramsey's target audience is. It's people who are not particularly good with money. Like anything else, you need to be educated to truly understand how it can help and hurt you. Credit cards to the core are there to help. They give rewards, cash back on money you would spend otherwise, and perks outside of the rewards. They can also hurt you if not used correctly. Sounds like a knife. Or a spoon. Or anything else. If you have the discipline, you should be taking advantage of credits cards. If you don't then credit cards are not for you.

[@CapsFan082892]

Did that credit card study also study debit cards?

[@MM89-n8h]

Credit card rewards can work if you are extremely disciplined. I do cash back and pay it off every week. I use my credit card for EVERYTHING and get several thousand back every yearn cash. I also travel for work so I get a lot of extra points. I do think of it as a debit card and never use it if I don't have the money. Works for me; not saying it works for everyone.

[@roythousand13]

Most people aren't extremely discipline!

[@MM89-n8h]

@@roythousand13 this is true

[@n8dawg640]

I commit to the 30 day no credit card challenge (I have never owned a credit card in my life)!

[@frankrey7676]

The MIT study had a sample size of 28 people ages 20-54... Not exactly a representative sample set. Yes this is a game I want to play. Pinch those pennies.

[@leytonfortnite4724]

I love how you are going all in on credit cards. I feel like I'm the only person I know who doesn't have one. I got rid of it 8 years ago and never missed it. Maybe once. I even got a credit card ad from Starbucks in my app today. Everyone is trying to sell you one bc they are SO lucrative.

[@retnuh1262]

The Wii music with the perfect spender was such a vibe. Also so glad you addressed that type of CC person first because I feel like everyone thinks of themself as the perfect spender

[@thomaspirko9387]

So I am the first 3, i can’t deny that. I agree with most of you said accept for one, debt cards are NOT just as safe. Yes if you report a fraud they can go back and repair it. But your money is immediately held by the bank, and it can take days, weeks or longer to get it released, had this happen twice well traveling and haven’t used my debit card again because it caused me some major problems that are not worth the hassle.

[@bvoyelr]

Perfect spender here. You bring up the study about credit card users spending more, but are you sure that same phenomenon doesn't apply to debit cards as well? It's basically the same physical thing to perfect spenders -- a piece of plastic that contains digital dollars. I know from my perspective, a debit card wouldn't be a barrier at all. Cash *might* be a barrier -- in a lot of cases, the thing I need is only available or convenient to purchase online, so plastic is required (and thus, cash would prevent the purchase altogether). There's the rare (probably once every 3 years) instance where I make a single large purchase that I don't want to drain my bank account to pay for, so the $50-100 I spend in interest is worth not having literally zero dollars in my checking account, but even that's more or less a thing of the past as my income has increased and I'm getting "ahead of the curve." But my primary concern is that the debit card won't have any impact on the perfect spender archetype. Plastic is plastic, and if you treat plastic like digital cash, there's really no difference.

[@51TillJoburg]

George you legend! Brendon from South Africa, I cancelled my Cc A year ago thanks to watching your network and I honestly feel so much better. I save money and spend that money- SIMPLE. THANK YOU 🙏🏼

[@tylersanders2388]

Transitioning off credit cards is actually way harder than George is giving credit for. A major issue with credit cards is you’re always 30 days behind paying your bills. It’s really challenging to pay last month’s credit card bill and pay for everything in cash in the same month all of a sudden. It took me a few months to really transition away

[@metaltera86]

That’s why you pay your credit card balance as soon as it’s out of pending Instead of waiting until the end of the month. Treats it more like cash at that point

[@tylersanders2388]

@@metaltera86 that’s a dumb way to do it. Just use debit cards and cut your work in half

[@bluefrog12345]

​@@metaltera86that's what I've been doing for almost 20 years. I use them for cash back and then put the cash back into an investment account. I never pay interest and don't spend more than I make. An emergency fund gets used when an actual emergency takes place. Sinking funds help with everything else.

[@bluefrog12345]

Ill take the extra work of making sure all my charges are correct in debit or credit card purchases. Its worth the $1,000's ive gotten in cash back that went into dividend paying stocks​@@tylersanders2388

[@DrJack144]

It’s hard to transition too because you are literally having to watch yourself overpay by 2% for everything for no good reason at all. Hence why 99% of wealthy people do use them. The transaction costs are already built in to what you buy. Using cash or debit is dumb tbh.

[@ChintanCG]

The frozen song was 🔥

[@Wkwok11]

Why should I feel bad getting my rewards pay by people with debt?

[@TheAvalace]

Ramsey Solutions always brings up the MIT study about the credit card usage and brain activity. But one of the big controls that the study didn't account for, is whether those people had consumer debt to begin with. If the study was randomized among Americans, then you can expect the majority of the participants had credit card debt and did not pay off the balance every month. Would the results be the same if everyone in there were fiscally responsible spenders who stuck to their budget and only used their credit cards as a means of transaction? Maybe but until its done we will never know. Personally I've done the no credit card challenge and it made no difference in my spending habits.

[@GeorgeKamel]

This has nothing to with debt. If you use a credit card, you’re likely to spend more. End of story.

[@TheAvalace]

For the average person I would agree. I think we can agree that a person with credit card debt to begin with are more likely to be spending beyond their means. And if someone is spending as such, it would make the study lean towards excessive spending. I’m just saying I would like the study to be expanded to a group that does not have any credit card debt ever and see if the results of the study hold or if there will be a difference in brain activity.

[@thewafflehouser]

@@GeorgeKamelso you’re saying even if you have a budget that you adhere to, using a credit card you are more likely to ignore your budget and overspend?

[@maryangelica5319]

​@@thewafflehouser I think the argument they make wrt the study is that in comparison to cash, which you can see and feel in your hands so you're starting to tell when it's getting low, there is very little emotional friction in swiping the card in comparison. In other words at least when the study was done, cash behaviorally tended to make you stingy. My only thing is that if that's the argument one is making, then there isn't much of a difference between credit and debit for those who are in the green when they spend.

[@thewafflehouser]

@@maryangelica5319 I don’t disagree with that. My point more so is that when I make a budget (I use YNAB but EveryDollar would be the same), I don’t make it based on the method of payment. The ACH on my house, cash for the ice cream truck or my Costco card for gas. Nor do I leave much room for flexibility based on potential emotions of what I’m paying for at the moment. The study is an old start, but it’s 3 years old and needs to be further parsed. When I did the baby steps, which changed my life for the better, I learned how to build and adhere to a budget. That didn’t change because of the word credit.

[@instagramdude4784]

Sorry George. This is something I will NEVER AGREE WITH any Ramsey personality on! Just use CCs responsibly. You get free perks by doing that. If you are not responsible, stay away from CCs. And NO, I DO NOT OVERSPEND just because I use CCs. That's pure BS!

I was at a family gathering where my cousin made a point of showing us his new credit card thinking we would be impressed by its snooty prestige. We asked him if it had a $50 yearly fee he said it did. We laughed and called it a sucker card. I refuse to pay a yearly fee for the “prestige” of a credit card.

[@siumaka]

Please share the source of the study that shows credit card users spend more than debit card users. Thanks.

[@aadarshviswanathan2825]

I have five credit cards, carry no balance and have physical pain when contemplating a purchase and keying in my deets. Guess I'm a unicorn

[@StreetCycleSoldier]

Lots of us are like that. Ramsey is too "absolute" on this. Good for the masses, but ultimately not fully accurate

[@anthonys5568]

I 'm an American and live in Europe. I use my US bank debit cards for all my local purchases and local currency ATM withdrawals. Never had a problem.

[@leyvaj91]

I have a budget. Keeps me from going crazy on spending.

[@vincentpham8605]

I have a credit card that gives me 5% on grocery and 3% on gas that goes towards my balance at thr end of the month. Once a purchace hits the credit card account, i pay it immediately. Not at the end of the month. Im getting a 5% discount on groceries and 3% discount on gas. How can i go wrong?

[@kellenkraft8304]

Haven’t used credit card in 8 years. Paid off house a year ago at the age of 37. Putting lots of money towards retirement and living a great life. I’m a plumber and my wife stays home with kids. This stuff works and God is good.

[@pentoo988]

It does work. You are blessed for your faith. However using a credit card for your budgeted purchases and putting it on autopay works as well or better too. Like the comment above its like drinking responsibly. Jesus turned water to wine but he also says don’t get drunk.

[@MagnoosChess]

It’s always better to use credit card and pay it off. Fico scores do matter in life. Not a good video for smart people. Maybe for the average sure.

[@nickverburg8255]

I would just like to say, credit cards are not as evil as you think George 🤷‍♂️ Here’s how I use credit cards for my benefit: If I have a budget laid out, and I budget $250 a month for gas, and I use a credit card (in this example the citi custom cash) and only spend that same $250 on the gas, I am essentially getting a 5% discount on gas for free just for using the card. All the while, I’m increasing my credit profile age (a good thing) and keeping my utilization low (also good) and so much more. All this: with no debt and actually making money back thru cash back. As long as you pay off, in time and in full, and only spend the credit cards on things we’re going to purchase anyway, credit cards can be a HUGE financial help. Also, side note, I’m pretty sure you’re a Christian, I am too :) Love your channel!

[@joyfully8802]

Using my cash rewards for things I’m already budgeting for (gas and food) brings in as much as my HY savings. I have a hard time with this one….there doesn’t seem to be similar shame with banks/mortgages making money on interest and loans going out to people who shouldn’t be taking out loans so why should one feel a similar guilt for receiving a benefit that others misuse? I’m with you on many things and enjoy your content but this one never adds up for me from the standpoint of harming others. I also get cash back on my monthly charity donations 😊

[@tomaszp2027]

Are you spending more on those than you would otherwise? The answer for me is: maybe? Idk.

[@joyfully8802]

@@tomaszp2027 I would honestly say any overage is covered (and then some) by the cash back (5%).

[@AvalonMisty]

Alright George! Sing it! A man of many talents...demonstrating that learning can be fun.

[@Joeybsmooth]

What is the alternative to using cards? Like i dont want to carry around large amounts of cash. And most places dont do checks.

[@SorryImBusyThatDay]

So your solution to card fraud is checking your checking account every day so that you're only hit with the $50 maximum liability coverage a debit card provides? You would literally rather people check their accounts every day *and* pay $50, just to avoid having a card for online purchases?

[@MrSnoryMan]

I fall into the perfect spender category, and I have only heard the Ramsey group talk about the 1 study. I think if you got together a whole bunch of perfect spenders together who treat credit cards like debit cards and pay off the balance weekly as I do then that study would not hold water

[@melogranohifi]

The supposed “drawback” of type 1 is a benefit. If I spend well below what I make, save regularly, am thoughtful about my purchases AND there’s a psychological trick that makes me feel better about my spending AND it gives me free money, what’s the drawback? Spending more is not bad IF YOU CAN AFFORD IT. There’s no moral superiority in being a cheapskate. I would be a miser if I had to pay everything in cash because I’m just a natural saver.

[@VeteransWealth]

Military members get all annual fees waived for American Express and Chase credit cards. I have almost 10k worth of annual fees waived and in a binder for all the benefits. It’s unbelievable how much free travel, credits, status and points I’ve used over the years for free. It made living super frugal not so harsh when I knew I could use my income on the bare minimums and credit card rewards as life’s splurges. Exception to the rule but I’d recommend this strategy to almost every military member I know.

[@cnex101]

When is George going to release his first album? I'm ready for Ramsey Record Label!

[@RebelMontana]

5:00 debit card is 2 risky to use as if the funds gets stolen due to skimmers, it’s hard to get those funds back ad certain banks have a loophole. Credit cards are good as you can dispute the transaction

[@calvinwebb8949]

I have decided I am done with credit cards. I budget now and use my debit card for purchases. George I love the Let Go Parody and thank you for the book Breaking Free From Broke.

[@IBPaintsppp-wt5ou]

I don't know how he did it, but George has the best editor on KZbin.

[@bolo34lx]

I had a new HVAC system installed last year for 15K. I paid with a credit card and got 300 in cash-back. I could have written them a check...but why give up free money? I paid it off at the end of the month so no interest was paid.

[@trainwrecked1114]

The perfect spender isn't the average case of credit card user- so trends found in studies that apply to the average case of the study set may not be apt to label the fringes of the study set. I still think the average spender should avoid credit cards. That said- if I'm paying a bill and looking at my debit card (or bank transfer) vs my credit card- I'll use my credit card and immediately (that minute, not end of month) pay off the purchase on the credit card. It's free money in points with no annual fees. I feel silly not doing it.

[@kmech1111]

very well said. I agree with you 100%

[@Paul-d4l]

Love you George! Keep up the great work!

[@dougbaron7853]

I am a credit card user- not in debt and have $$ saved up. I do find myself spending more money on credit. I think I’ll try the 30 day credit challenge

[@choochtech]

George how can we do a credit check on all three lenders? I have never had a credit card but I have a mother that I do not trust that likely has enough of my info to open a card in my name, I suspect she has tried using my name for loans or credit cards.

[@BroxsonDeighan]

You work for a 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a bitcion coin for just fe months and now they are multimillionaires thanks to Charlotte Grace Miller

[@salinagauntlett]

She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states

[@AdamKotlicki]

I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.

[@shandegabrielrojas9350]

The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.

[@WilsonCounty]

I'm new at this, please how can I reach her?

[@Piligarcia-zs7bo]

I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills

[@winchucky]

Thank you for the information. I'm tired of losing to these credit card companies.

[@danielr951]

I keep my credit cards open for only one reason I barely used them for anything but gas but I keep them open because I will not be calling every hotel, car rental, before traveling even if it’s a couple of times a year and paying higher insurance rates just because I don’t have a credit card.

[@gunning4tech]

You mentioned my home province, love it! From Canada 🇨🇦

[@jessedyck5508]

I agree George. I haven't ever had a credit card I just always use cash! its GREAT!!

[@OneIncomeSuperSaver]

Not everyone spends more when they use a credit card. Some of us stick to our lists! I actually use less than I have in the past..not bad for everything being inflated. How am a I benefiting from other irresponsible people? They chose to be irresponsible..nothing wrong with being rewarded when you did something right. You must be from the everyone gets a trophy generations.

[@RicoVanDeta]

Whoever is editing this video needs a raise. Top of the line memes brother

[@doomy_doomy2225]

Me and the other smart ones who are not over spending on a credit card, saving more on a cash back, and having more security than a debit card. Bank ain’t going to fight to get your money back. This advice is good for the 80% of Americans who are too lazy to better their lives.

[@fullpulse2000]

Its all up to each individual credit, debit, or just cash fund. Also just like your youtube video Georg, you put on two sponsors verus most short vids only have one, guess you're raking it in.

[@michelemurdock7110]

So funny. So true and informative. I won’t lie. It really is hard to get of all the cards.

[@pjdaymom]

George, love the song!

[@stellijer]

I have to take that Double Dog Dare! My purchase decisions are based on whether I'm willing to spend a certain amount for a certain good, and whether I want it cluttering up my home when I'm done. Having a credit or debit card is the least of my concern. Maybe the study is effective in general, but there are surely plenty of exceptions. Not to mention CAUSALITY was not established! Maybe people with credit cards sometimes spend more because they have more to spend, and, because they pay their cards off, have the credit cards to do it. And get a couple rewards to boot.

[@smokenchoken1736]

Never had a Credit Card only a Debit card and cash, Debt Free, Own my Home and multiple vehicles, growing 2 separate IRAs (One from previous employer and the other from current with company match) Thanks to The Babysteps Im on track to Financial Peace

[@frederickvalencia4976]

i am credit guy no.1 But i ONLY use it for Gas. its almost imposible for me to over spend on gas. my car caps at 14 gallons. But I agree credit cards are evil.

[@retnuh1262]

I particularly like that when George speaks like a credit card user, he speaks in this font "I pAy OfF mY cReDiT cArD eVeRy MoNtH"

[@emoney1231]

Did the MIT study ONLY look at people who pay off their balance? Or all credit card users? Just because you can draw a conclusion based on a sample, doesn't mean everyone in that sample fits that conclusion.