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

[@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.

[@kangyun1985]

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

[@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.

[@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.

[@Samuelchingron564]

Successful people don't become that way overnight. What most people see as wealth, a great career, purpose is the result of hard work 🤑🤑

[@MarcSmith-iq5qh]

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

[@Datavendor3]

Investing in crypto/forex is a good idea, a good trading system would put you through many days of success.

[@Deepisusanti]

Investing $15,000 and received $174,000

[@Davidsam900]

Please who is Mrs Maria

[@Davidsam900]

Please who is this This sounds so good andI would like to be a party to this, is there any wayl can speak with her?

[@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.

[@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.

[@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

[@Bidenlost2020]

@@prakash.srn.17 No idea where everyone keeps hearing that myth from. I had my debit info compromised 2 years back, and within days, got a new card and the stolen money refunded.

[@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.

[@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 😂

[@HappyTraditionalWife]

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

[@LoyalSol]

@@HappyTraditionalWife 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.

[@CapsFan082892]

Did that credit card study also study debit cards?

[@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

[@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 .

[@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.

[@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.

[@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.

[@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.

[@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**!

[@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 🏆

[@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.

[@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.

[@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

[@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.

[@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.

[@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

[@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.

[@Bidenlost2020]

In 2022, I opened my first one. Then 11 months later, I had 4!! All along I had been a Ramsey fan since late 2022 and decided Aug 2023 to cut them all up. Yes, I do not miss them, nor do I fear leaving the nest without a FICO score.

[@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.

[@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.

[@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…

[@MakeAndFixItYourSelfProjects]

I follow all Dave’s steps except credit cards, I never carry a balance however I ve had both my Credit cards and debit cards stolen. The credit card charges were easily disputed, the debit card dispute required hand written responses. The pain the resolve thief of the debit card is the only reason I keep a credit card. Also no debt except the house, and 10 year left..have the cash on hand to pay it off 2x over but I m getting a 5% return on it, my interest rate on my home loan is 2.3% if rates drop that low I ll pay it off but the spread is too good, I m making 5k a month right now just on my saving account.

[@n8dawg640]

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

[@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.

[@HappyTraditionalWife]

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.

[@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.

[@hardchooligan]

I hate how the ramsey team picks and chooses when it's ok to use a product that is "paid for by taking advantage of poor struggling folks"(they always use the example your free trip was paid for by a struggling single mom). Well aside from the obvious point that other people's finances arnt my responsibility. The more hypocritical point is ypu know who else gives ypu a better product by taking advantage of financially illiterate people? Um basically every corporate institution. Banks sell crazy loans to single moms, car dealerships upcharge dumb 20 year olds, insurance companies give you lower rates if you're responsible and offset it overcharging those who struggle, I could go on and on. Have never heard Dave say "even though I'm financially responsible, and I need a car, ill never get one unless its private sale because all car companies/dealerships take advantage of struggling single moms". Or Rachel saying "even though i can afford Disney and it would make me happy, they offset my price by giving Disney credit cards to struggling moms so I cant support them". Just stop it with the guilt trip unless ypu are going to keep that same energy for EVERYTHING.

[@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.

[@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!

[@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.

[@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.

[@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

[@devonloerop]

I have to remind myself that most of the Ramsey audience is extremely irresponsible people just getting started in the world of wealth building and personal finance. I have 3 credit cards one personal, and one for each of my businesses. I put all of my business expenses on these Alaska Airlines cards, and pay in full at the end of every month. I haven't bought a flight in years saving be thousands of dollars. I know it's part of the Ramsey contract to never acknowledge credit cards as having any upside, but IF USED RESPONSIBLY, they can be a very useful tool with great benefits.

[@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.

[@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 🙏🏼

[@leyvaj91]

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

[@donnahampton3632]

That was an awesome guitar & vocal Kamel solo!

[@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?

[@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.

[@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.

[@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.

[@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

[@Bidenlost2020]

Well done!

[@DavisBronsted]

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

[@thehomeless_trucker]

If im keeping to my budget, how am I overspending with a credit card? And those card vs. cash studies are actually plastic vs. cash... daddy dave even admitted that debit cards come with the same 12-18% increase in spending over cash. But again, by keeping to a budget, that increase disappears.

[@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

[@LastSider]

If your checking account gets drained then you cant use those funds and its a nerve wracking experience where a Credit Card you can report/disputed and you still have your cash on you.

[@towel-ie7554]

I haven't paid for a flight in a while...thank you AMEX.

[@alexkico4657]

Huge supporter of the no credit card, zero debt philosophy. How would you respond to the hypothetical situation. You're doing a talk at a high school teaching kids about not going into debt, not using credit cards and all, and a student shares that their mom works for a major credit card company. How would you talk about this avoiding causing conflict between child and mom because the child goes home believing that his mom is part of a scam. 😬

[@jessedyck5508]

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

[@Wkwok11]

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

[@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!

[@trainboy192]

I have a credit card I use just for travel because twice I was stuck out of town with one debit card and had to have family send me money to get home. Never again.

[@kingdedede6145]

I'm such a huge Dave Ramsey in every part of my life...except credit cards. That's the one thing I've had the hardest time getting rid of. This video really helped me, so thank you for making it!

[@DrJack144]

No need to get rid of them. Wealthy people all use them. Just ask every wealthy person you know if they use them or not. 99% of them do. Of that 99%, none of them pay interest either.

[@kmech1111]

Me too. You have to view Dave through the appropriate lens. He's put out there a plan that cannot fail. It takes no risks. Credit cards are an overspending temptation. Some of us (deliberate spenders) would never be affected by that. Others would be unable to drive past a walmart without losing money like it was a casino. If he softened his position on credit cards, it would reduce the effectiveness of his plan. Remember, he, too has a product to sell, and reducing the effectiveness of his plan damages the value of the product he has to sell. I'm not slamming Dave in any way, I'm just being pragmatic. He's got a great product, and I hope it reaches as many people as it can.) The part that annoys me is when he stands on facts that are blatantly false. He loves to claim if you've got a good FICO score, you've spent thousands upon thousands on interest to get that score. That's just blatantly and provably false. I know people that have used credit cards for decades, and never paid a dime in interest. Also, everybody out there that goes and gets a 15 year fixed mortgage (assuming they pay it properly), is getting a great FICO score directly as a result of following his advice. Sure, you can get your mortgage without a credit score with manual underwriting, but that won't stop it from giving you a score once it exists and generates account history.

[@eatpigsnot]

@@DrJack144 watch Mark Cuban on Daves show talking about credit cards

[@BLdontM]

You should reconsider. They give out a lot of other terrible advice.

[@eatpigsnot]

@@BLdontM all of their financial advice is spot on. if they would just stop discriminating against single people that would be great

[@merc7paul]

Lol with the picture of a charge card😂

[@antillie7]

A budget solves the issue of spending more with a (debit or credit) card vs cash. Sticking to a budget makes how you pay for things irrelevant.

[@beckypetersen2680]

I wish Ramsey solutions would actually address this point. It seems like they avoid it. The day of plastic is here...or paying by phone. The effect feels the same if it is a credit or debit card - it's plastic or a phone. Most younger people aren't paying with cash. They don't want the hassle.

[@libertarian4323]

@@beckypetersen2680 They avoid it because their stance is irrational and they have no logical counter argument.

[@terminaterjohn]

The Ramsey team knows this is a losing battle but still trying to convince us to not have a credit card. Ok then, keep on trying

[@brianadams6204]

Worked for the wife and I cut up all 13 credit cards and never looked back.

[@xlerb2286]

I'd take the month challenge but my spending is so erratic that it would be hard to do an apples to apples comparison. But the only thing I put on the card are necessities and being a frugal Midwesterner who's parents went through the great depression I've got a pretty good handle on the difference between wants and needs. I'm also at that stage in life where I've got my investments in place, retired, and drawing on those investments. The budget has all the disposable income needed so as long as I stay within that amount (easy to do) I'm good.

[@Beltloop29]

Interesting video. I do have 2 credit cards and have to remind myself to use them from time to time. But I don't think I'm normal. I have no credit card debt, no personal loans, no auto loans, and only a small mortgage.

[@cromdaleblvd4677]

nah ill stick to my credit card... just be responsible with your spending.....

[@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.

[@alansz3382]

For the last 3 years I’ve spent $1800+ on fireworks and paid cash, this time I put it on my new credit card, got $600 back for a sign up bonus, and $36 from the purchase, Dave Ramsey says you spend 100k to get $500, well Dave Ramsey that $500 might not be much to you but for us it is

[@angiewolf8189]

I have an anecdote. I went out to a restaurant last weekend and spent over $70 in cash. I would have NEVER PUT THAT ON A CREDIT CARD. I had that cash in my wallet just a sitting there. I earned it from a tutoring gig. Credit card use for me controls my spending, like big time. I still can't believe I spent so much in a restaurant. I am debt free (pay that AMEX off daily if needed), including my mortgage, and am millionaire, due to NOT spending cash like a crazy person. Don't believe those studies that say spending cash is more painful. Damn, I spent $70 and got NOTHING FOR IT. No double miles, not 1.5% cash back, nothing. Back to using my credit card only to control my spending. Cash is like free money and goes far to easy with zero reward.

[@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.

[@frankalexander5401]

I am the “PERFECT SPENDER” and I do spend more with a credit card!! The reason is because it is a pain to go to the bank to get cash to buy stuff. I also travel a lot so the credit card is necessary.

[@scottwilliams7395]

I’m not sure how you’d overspend using a credit card when using a budget. Also credit cards are more safe when being used online. Since it’s not your money, if you get hacked, they send you a new card. While if your debit card gets hacked, they can freeze your entire account or not refund “your” money until their investigation is completed.

[@joshuawilliams6153]

I live overseas I can't tell you how many times I needed a CC, sometimes my debit just doesn't work and it's not cause the bank blocked it. It's something with the backend of the countries payment systems that just won't accept American Debit cards

[@wj8273]

I beg to differ… I am a user that pays it off every month. I always shop with a pre-planned list and budget amount per item purchased. Also a running pencil to paper running list of every penny spent. My card rewards go directly into an IRA. So I may be a unicorn in this topic but I will not feel bad for playing the game to the best of my ability. Everything in life is choices and personal responsibility.

[@IBPaintsppp-wt5ou]

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

[@shuman26V]

Issue with 1.. the study was credit cards vs cash, and taking that and saying "use a debit card" is a strawman argument. Issue with #3 fraud protector, I've had fraudulent charges on both credit cards and debit cards, and with credit cards that money is instantly back in your account, and with debit I had a few weeks to a month before that money was back in my account

[@jordan_ream]

I get the shtick of no debt here but not having any benefits mentioned is crazy lol

[@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.

[@jeremyh9091]

I plan to buy a house in the next year and I know I can buy a house with no credit score by using Manual underwriting but everything I have seen requires no credit score for that option not a low score. Keeping my 1 credit card until I buy the house and then it is gone after I spend those points of course, lol.

[@TH0KH]

#1 was a personal attack but I get anxious using debit cards. Time to swipe the debit card after a session about it with my anxiety therapist 😂

[@AvalonMisty]

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

[@Leo-uu4zk]

RE Rental Cars: Merchants can't tell if you have a debit card. Just ring it up as credit.

[@napoleon1992]

Dave says to never pay market price for investment real estate. To get a deal you are usually take advantage of someone else's misfortune. Does the credit rewards user's that benefit off of others somehow different than real estate? I think a foreclosure, loss of job, death in a family is more misfortune than me using reward benefits from someone else expense.

[@ashmeyer21]

If you have a business you need a credit card. Most people only pay a percentage until the job is complete and I don't see a business owner having that much cash all the time if issues occur .

[@jxg5448]

I'm a number one, "perfect spender" (with a dash of number two). The only difference is, I don't spend more just because its a credit card. What the Ramsey folks seem to overlook is there are those of us who are responsible with credit cards. I use my CC for groceries, gas, cell phone bill, internet bill, and auto insurance. That's it. Not just because I'm fiscally responsible, but also because I'm just boring. So why not use my CC for those things and always pay off the balance? I get 1.5% cash back, which isn't much, but it more than I would get with my debit card.

[@emoney1231]

Does the Ramsey team think credit card companies will stop charging poor people interest if I stop collecting rewards?

[@cnex101]

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

[@superfark5914]

Awsome info...however, what happens when you use your debt card online and someone hacked you thrn they get into your bank account and take your money? You now can't make rent. With a credit card that can't happen.

[@ryandefranco7740]

Without going into specifics, twice in the past year I've encountered situations while traveling alone that highlight the importance of having a credit card with a substantial credit limit. It serves as a vital safety net, providing peace of mind and immediate access to funds in critical moments. I believe this approach is both prudent and responsible, and it does not jeopardize one's financial stability. I value your perspectives, but I believe your stance against credit cards here is somewhat excessive.

[@StreetCycleSoldier]

Also, I'm betting no one at Ramsey drinks this Kool Aid deep down. If I worked for Dave Ramsey and he told me for $500k a year I just have to push baby steps and shit on credit cards, I'd do it too. 😂 None of them actually believe this credit card garbage.

[@StreetCycleSoldier]

@George Kamel I challenge you to take a competent person's call on the show and debate with Dave. I know I won't get rich off points, but stop telling responsible card holders they're "wrong" for enjoying a good thing while living a responsible financial life. Feel guilty for credit card companies transferring wealth? You say yourselves it's only a small amount per year in cash back! Also HELLO how about all those RENTERS Dave has?? Dave is WRONG and totally has a God complex on this or he'd concede IMO.

[@tyrecarmon20]

​@StreetCycleSoldier me and my wife use CCs and still invest our money every month. Also we have a fully funded emergency savings. I honestly don't see an issue if someone is responsible 🤷‍♂️

[@PeculiarUncle]

It's really hard in my residence country to use debit cards for transactions. The cards also have high maintaining balance. Prepaid cards have transaction fees. Bills and coins are hard to use here. What if I just deliberately overpay my credit card monthly equal to my budget for the month? I got the idea from the banker that I talked to when I asked for a debit card for personal expenses. 🤔

[@bran19802323]

If I’m going to spend the money any way and we’re on a $2000 monthly budget and pay the whole thing off at the end of each month and we’re planning a big vacation usually every couple years usually well $500 is better then $0 the last time I checked. Plus the ease of tapping compared to putting in your pin # every time they’re actually paying me for convenience.

[@Heidi_Cheri]

I regret signing up for my credit card. I wanted to cash in on some rewards but it earns mere pennies. I use it responsibly, only for budgeted expenses and pay it off at the end of the month. Maybe I would be getting a lot more back in rewards if I was going hog wild but I’m not going to do that so this card really isn’t serving me. Don’t do it is my advice! I lived fine for years without one.

[@Loveofdecorating]

😂 He is hilarious…. Love the song…. Life’s a musical with me too… I get it… As far as the cards 💳 go, my husband and I are currently working on paying them off… My whole extended family are several of these different CC personalities 😂😂😂 I was like … that was my uncle…. Oh that was my cousin…. That’s my mom…. 😂😂😂😂😂

[@beckypetersen2680]

Not committed. Sorry about that. We're okay. I live as an American in Poland and love not having to bring much cash over here as there is no free way to get it here. Most stores here accept c/c so I can shop all month and just pay with the c/c and not have to bring the actual cash over here as it costs to get it.

[@RebeccaEvans]

My debit card doesn’t let me take out 20k at 3% fee for 21 months and use that to make 5% in a HYSA.

[@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.

[@jwarnstarsmile]

Unfortunately, I tried to go without my credit card, and it increased my bank fees, so my recurring bills are going back on the CC.. Which is sad, but it'll be ok.