The True Cost of Credit Card Rewards | The Fine Print

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Credit card companies are screwing you over. The system is stacked against you. And if you think you're winning, you need to dig deeper.
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[@johnarteaga6406]

I liked the statement, " if the banks were not making money on the cards they were stop offering the perks."

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees

[@jlg7561]

I only use my credit cards for things I’m going to buy anyways. I never (or try to) act on impulse. For me personally, seeing my cash back add up keeps me alert because I know it’s a reflection of my spending. So the more cash back, the more I know I’m spending. I like to go back to check my transactions and I reflect on what I’m buying.

[@laszlobauer5274]

You know what alerts you that you spend too much? Your budget

[@DJ2YTonly]

I do like that Chuck E Cheese analogy for the rewards cards. I tend to agree that the rewards cards are rarely a net positive for folks and it really does become a full time job to manage a bunch of rewards and cards. I think the easiest way to be a credit card "winner" is to just get straight up cash back cards (with no annual fee) and spend money like a normal person then pay it off in full every billing cycle. Low commitment and pretty easy.

[@cashisqueen3825]

It’s really not- at least at Chucky Cheese, You’re getting some entertainment value.

[@1jesus2music3duke]

This is insane. Full-time job to have a credit card with 2% cash back? All you have to do is be able to pay it off every month. That’s the part most people fail at, but if you have a big income and low spending, this is a no-brainer.

[@ethanelectric1024]

If you have a big income y do u need 2% cash back.

[@esonon5210]

@@ethanelectric1024 nobody “needs” it. It’s a benefit that can be taken advantage of.

[@ds5651]

People get wealth because they pay attention to 2 percent.

[@slchance8839]

@@ethanelectric1024 if you have a massive income and spend $100,000 in credit cards, then 2% is $2000 dollars. That's first class tickets in the US. Even the wealthy could use first class tickets. ESPECIALLY the wealthy.

[@lcm4951]

I'm digging the format of the information provided in this video. Kind of reminds me of "This American Life." Such an awesone switch from the formula of most of the other Ramsey Solution videos! I look forward to listening to more!

[@emrose1717]

YAAYYYY! You are such an awesome guest speaker on the Ramsey show. One of my fav's! So glad you have your own show :)

[@mlandrew6288]

I've use credit card since I was 18 (I'm now 30) and I paid a grand total of $0.00 in interest. I have currently 14 credit cards. Only one has an annual fee. I earn around $1k a year in points (sign up bonuses help). I make just under $50K/year and I'm still able to save/invest 25-30% of my income. Now I may spend some time researching cards but really not that much. Besides I personally enjoy playing the game. It's a hobby for me. I don't know, I'm still not convinced to stop using them. I feel you just got to be wise how you use them. Pay them off in full every month and if you can't pay cash for it, don't buy it. Oh and also have an emergency fund in place so you're not tempted to use the credit card as an emergency fund.

[@mlandrew6288]

@@thegreatcoward it's been over the course of 12 years. I get 1-2 cards a year so I spend far less then a hour a week. Over half have $0 balance since I get most of them for the sign up bonus and never use them again.

[@haywoodjablomi9249]

It's easy to say all that for some of us but I think the video is directed more at people who are inept with money or just have a spending problem. I've witnessed both, and It really is a big issue for many people. There are countless numbers of individuals that can or will only pay the minimum payment and carry a max balance every month which turns into a (20 or whatever the rate is divided by 12) charge each month. They give people more credit than they can afford on purpose. I view it as a poor tax.

[@raully3277]

Because you are one of the smart ones. That is why in the video they say “MOST” Americans spend more once having a credit card. Those are the people credit cards are making money from. I have about 5 cards and have 0 balance on all of them. I get about $500 cash back a year. It’s not going to make me a millionaire but no one ever says that about credit cards like Dave Ramsey says lol. It’s just extra cash for fun things

[@Shortballa11]

Very identical situation here as a 29 year old. I thought the vid was gonna teach me some insider knowledge. I keep everything on autopay, have 1 annual fee. And close out credit card soon after the initial benefits. And my daily credit card doesn’t encourage me to spend more cuz i don’t even pay attention to the points. I just randomly use the Amazon points when they are there as a nice surprise. This video has more to do with living beyond your means than some secret scam of credit cards. If you are already irresponsible financially. Don’t use them.

[@xavierguerra5315]

Changing your life isn't it?

[@PassportBrosBusinessClass]

#1. Raise over $15,000 in available credit (regardless how many cards you need- fewer is better) #2. Use your cards TO SPEND MONEY YOU WERE ALREADY GOING TO SPEND: Gas, food, cleaning supplies, etc. #3. Pay off the balance as soon as you spend the money. When I spend money on my credit card today, I pay it off tomorrow. I don’t even give them a chance to print up a bill to send me in the mail. MY FICO SCORE IS 850. Basically credit card use and building your credit score is a game where you have to have access to credit but you’re never using more than 5% of it. The larger the amount of available credit you have means the more credit you can use at any one given time. Smartest thing to do is to pick a credit card that has a rewards strategy that you want to take it advantage of, but the trick is for you never to have to pay interest by always paying the card balance on time. I also avoid cards that have an annual fee. I only really use two cards: CAPITAL ONE VENTURE and APPLE-CARD I also think that it’s important to understand that credit scores track your “behavior“ handling multiple types of loans over a long period of time (seven years). There’s no true way to “instantly“ force your credit score to improve because even if the score itself improves, your history doesn’t end for large loans like auto loans and home loans which your long-term credit score is attached to your credit history and they are going to scrutinize it in underwriting. Also keep in mind that it’s important not to make any late payments whatsoever and you also need to stay out of court because if there are any collections/public records about you getting judgments then it will bring your credit score down quick. That includes child support, being late on student loan payments or not paying lawsuits that you lost. NEVER ADD ANY ONE ELSE TO YOUR CREDIT. NEVER CO-SIGN FOR ANYTHING. You need to treat your credit score like your balls. PROTECT THEM AT ALL COST.

[@donjohnson1416]

So using your logic I should go to the AA pages and talk about how good I am at controlling myself with alcohol? Real helpful to people who have a problem with alcohol. Just like your clown comment when Dave is trying to help those with a debt problem.

[@mrstinky2421]

They take advantage of people that lack self control. Alot of people only have themselves to blame. They use to card to live beyond their means. It's hard for me to blame the companies. The world isn't built to be fair.

[@Doggieman1111]

You're a couple of missed paychecks and/or a health emergency from being one of those people.

[@pey7777]

It's really simple. If you can keep a budget and pay your cards off each month, then they're definitely a benefit for you. if you can't keep a budget and pay the card off each month, then they're a curse and you should avoid using them at all costs. Easy

[@zz-nc5kx]

The plain simple fact of the matter is that all merchants raised their prices in order to cover the fees they must pay the credit card companies. If you are not using credit cards then you are leaving money on the table. You should use credit cards and claim whatever perks they offer - mileage points, cash back, whatever. I get cash back - a small recouping of money I paid to the credit card companies via the merchants. But you must be responsible - pay the balance off each month and never give the credit card companies a chance to charge you interest. Use of credit cards is like a free short term loan. Also, the monthly statements makes it easier to track where you are spending your money.

[@donjohnson1416]

LOL!!!! Not everyone can pay them off every month so they would pay interest and it would be worse than the "raised prices" over 70% of people carry debt those are the people Dave is trying to help.

[@achavez78]

So... I understand his (Ramsey) perspective. Most of their callers have completely ruined their lives from the poor choices with credit cards.Therefore Ramsey--under no circumstances endorses the use of credit cards, including responsible use. Similar to what youd tell an alcoholic in recovery-- to never to alcohol again; you wouldn't tell them use it responsibly.

[@garretteckhardt4]

A little hard to read through the attempt at looking trendy by crossing out half of your paragraph. But yeah, something destroys the lives of millions of people, it makes sense to tell people to stay away. That's all that you were trying to say.

[@achavez78]

@@garretteckhardt4 thanks for pointing this out because I did NOT cross out my words. I don't even know how to do that. I wonder if "they" saw this and tried to censor me.

[@achavez78]

I think because I used the word "al-co" holic I got censored

[@yazzer59]

I have one card. I use it for everything I would normally purchase within my budget. I do not pay an annual fee. I don't mess with mileage, gas or hotel and restaurant points. I take only the 2% cash. Over the course of a year, that cash pays my entire electric bill for the year. Discipline is the name of the game which most consumers lack. And, oh yeah, I have not paid one red cent in interest in more than a decade. I understand the purpose of this video but it implies that the credit card companies always "win". Not the case with me and I imagine others in the small minority.

[@donjohnson1416]

Play with snakes and you will get bitten .

[@ColinAdventures]

I don’t know how much other people spend in a year but I don’t spend enough to get much of anything back in rewards. I have had a credit card since I was 18 and the only time I carried a balance was when someone crashed into my parked car while I was trying to move out of a high cost of living area. Took me years to pay that off. Glad I got out of that area though. I can actually save a proper emergency fund now.

[@ScottSullivanTV]

Who cares if it doesn't "change my life"? I'm not turning down a free $700. That's stupid on steroids!

[@PassportBrosBusinessClass]

When I fly Business Class from JFK to DOHA to Maldives, my accumulated rewards are enough to pay my hotel stay outright.

[@irocitZ]

I assume you use credit cards quite often as opposed to cash to acumeulate so many points? Do you save a lot money by doing that?

[@PassportBrosBusinessClass]

@@irocitZ I use a Capital One Venture for ALL of my purchases. Groceries, gas, clothing, etc. You really get no benefits from cash nowadays. The federal reserve has set the interest rates so low that even with over $100,000 in cash in a savings account I am getting less than 3% interest. When I was a child in the 80s interest for my savings account was 10%. That’s the reason why most people feel less risky investing their money in the stock market to buy dividend paying stocks. The dividends for outweigh the interest that the banks offer. Credit card rewards are subsidized by all of those people out there who carry balances and are not disciplined enough to pay off their credit cards each month. Are used to get rewards points on debit cards before 2008 but once the banks realize that people were moving to debit cards over credit cards and that they weren’t earning profit from that end they cut rewards points off of debit cards.

[@garretteckhardt4]

@@PassportBrosBusinessClass you fly and travel "for free", have flown a cessna (so has my 15 year old friend), and supposedly have all this money yet still you feel the adolescent urge to preach about something that harms countless millions daily... then you post video game content because you're just so different from the average! You can't make this up, people are truly this dumb. Maybe you should hit the gym rather than stagnating while gaming, but then I'd just sound like the overly-critical narcissist I'm making fun of :) Say, could you fly a dozen of us "poor people" someplace so we can all talk money and get some real plans moving, or is your big talk just that? Those of us without piles of cash (which you said yourself you don't want) tend to work exponentially harder than those who do, so why wouldn't you take advantage of that? Righto, bunch of BS talk from a nobody. Enjoy chasing your credit score, like a dog chasing its tail.

[@Doggieman1111]

I can't really argue with any of this

[@RickSanchez167]

This entire video is literally just you admitting you and most Americans dont have the responsibility to purchase what you can afford, and pay off your card weekly...

[@Rashaadthegr8]

Yeah majority as in 80% of Americans who are in debt. lol.

[@thegreatelv6408]

Even those who are responsible. Research suggest people spend 12% to 18% more on their purchases using a CC and that is a tiny amount compared to other research.

[@justinlybbert3467]

Plus people could get an Amex charge card so they have to pay it off.

[@donjohnson1416]

WOW WHAT A REVELATION you had there!!! Shout it from the top of every building... youve been lost for a long time bud lol

[@Botagofo]

The way I screamed when he said that if it weren’t for the credit card his wife would be a stay at home mom. Yea sure buddy, a $10k credit card debt is the reason why

[@magnusm4]

Budgeting is a simple thing that saves you not just money but wealth, time and freedom. But credit cards quickly becomes the center of your budget instead of managing your investments and expenses.

[@EthanCowlbeck]

Not for people who are responsible with credit. There’s nothing stopping you from making your budget first and then applying those cards to the categories you’ve already budgeted

[@reversiontothemean6129]

The funniest part about the credit card rewards game is how defensive people get about playing it. I can just choose to go work one shift of overtime and make more than an entire year of the silly rewards game.

[@Danait30]

100%

[@donjohnson1416]

Yeah they are so good with math but never added up how much per hour they make with these "rewards" lol lol

[@bavarianglassworkz660]

George!!!!!! we need that visual aid great work

[@richarddugan-starr6364]

He would have more views if the podcast had video.

[@westbccoast]

I was disappointed no video of George speaking.

[@h.l.vangogh]

Jacobs story really hit home with me. Im in the same situation, paying off debt so yhat i can stay home with my newborn son. At this rate, he will be 5 years old before i can stay home with him. I wish i hadnt ever gotten a credit card or taken loans to begin with.

[@VictorMartinez-zf6dt]

I mean, it sounds like people can’t run a budget…

[@Jessica_Jones]

Yuuup.

[@Mr_Francois14]

Good video but I use cash back credit cards and pay zero interest. I use the cash back buy stocks that pay dividends. I use free money to make passive income. I’m winning. You can win if you have self control and I understand that most people don’t.

[@2skyman]

Same here. Glad someone else is smart enough to realize this

[@Mr_Francois14]

@@2skyman definitely

[@AbidingHopeMentalHealthCoach]

I’ll admit I still have one, but I almost never use it. And when I do, I pay it off within a few days. I haven’t paid interest in years, even when I did use it all the time. I just got tired of budgeting and then paying the card from all those budget funds. It’s way easier to just use a debit card! Saved me time when I reconcile my checkbook. And I’m not convinced that the rewards are worth the extra time spent. Even at the relatively low rate of $20/hr, I probably spent more time back when I used the card for everything staying on top of it than I got back in rewards. And I did stay on top of it. Now I use my debit card and EveryDollar, and I’m much happier. Just balanced my checkbook before I listened to this, and it was so much easier without the credit card charges to hassle with!

[@matthewrammig]

It is a kind of a hassle, for real

[@aleksandra-slon6029]

Thank you!

[@brendadouglas9833]

I believe that credit cards help you spend more money then if you pay cash. However, I do not feel that a debit card helps as much as paying cash, it is still using plastic. You do not see the money leaving, especially when grocery shopping which is a variable spending amount. It is all a mind set for sure.

[@KareemTaha15]

this isn’t complex. don’t carry a balance, don’t pay interest, stick to a strict budget. there’s multiple 2% cards with 0AF, and using debit cards triggers the same lack of cash exchange that a credit card will. the $2000 a year i net from sign up bonuses and rewards goes straight into my roth ira. sorry that some people aren’t responsible with their money but i’ll happily profit from interchange fees merchants are paying anyways.

[@donjohnson1416]

Its not complex not to drink either but TONS of people have a drinking problem and AA tells them not to drink. Dave is talking to people who have a debt problem. Get a clue.

[@coziii.1829]

First of all I get about 300-500 bucks back each month . And about 10,000 miles a month. I spend 5-15k average a month I get perks I used to do cash only never got free stuff had to pay extra . I pay off all my cards each month. You’re using your card for stuff you get anyway . Like I said I was a cash only guy . But you don’t get free stuff

[@danielleterry180]

Thank you for having someone to speak out truthfully I hope she doesn’t get fall back for doing so. I had a business AM for example I was 34k in debt just on that card I sold my 2nd home paid off all cards AM on 34k gave only 1500.00 points I shared card with my mom so told her buy her painting supplies using points I paid my debt off and I put cards in safe so can’t use them . Putting all my $ on home and brand new truck I will be debt free ...home 19 months and pickup 24 months ....I also put large credits on power and water co why? Well I have been hurt twice one I was out of work 3 months the second time I was out 2 1/2 years I learned to make sure if anything happens I have my family covered so we aren’t living in the dark with no toilet to flush, been there done that and refuse to put family thru that ever again.

[@BrandonBurch]

I love this podcast.

[@janetours3712]

I just added up my rewards for the year through June 1, 2022. ($930.00) I just use them for expenses like utilities, gas, food!! I use different cards for different purchases to maximize my rewards. I never paid a dime of interest to any of my cards or a fee! Nobody can convince me to change!!! what should I do with my $930?

[@laszlobauer5274]

Once I bought a phone using my credit card for 600 dollars because I didn't have 200 to buy a phone from a friend, which is the phone I really wanted and it was better, it was just 1 year old and the guy gets the new one all the time. I doubt I got 400 on cashback...

[@robferrell1805]

I haven't used credit since 2006 I have ppl tell me all the time that i need to rebuild my credit but i have more in the bank than most have credit limits i dont get it 😂

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees.

[@kmier2000]

Well I'd like to think I'm some kind of genius anomaly when I say I have never paid a cent in interest on credit cards, but I don't think I'm that special ;). If I can't afford something I just don't buy it. Am I in minority?

[@DJ2YTonly]

In the United States? Yes. Remember, we've had 2 economic recessions/depressions because people couldn't spend within their means.

[@Jessica_Jones]

It's so strange to me to realize the number of people who apparently don't live within their means 😬 I'm more and more grateful that my mom is a bookkeeper and taught me to be a budget guru!

[@user-hp9eg3gf6s]

In Greece you have to spend 30% of your pretax income with a credit OR debit card. Otherwise you get an extra 22% tax on the amount you did not spend. Spending in doctors it counts twise. So when i pay for a doctor i get 44% cashback + 2% from credit card. 46% cashback. I budget the money i have to spend separately and when i go to the doctor i can invest the amount i paid him (as i budget with 22% in mind.)

[@saulgoodman2018]

This is BS. There's nothing wrong with credit cards if people pay them off every month.

[@donjohnson1416]

NEWS FLASH over 70% of people dont lol lol lol. Cool story.

[@saulgoodman2018]

@@donjohnson1416 NEWS FLASH, 40% of people pay it off every month. Personal finance is not a 1 size fits all.

[@MickeyR6]

The only card that I use for the reward points is my Amazon card. A couple hundred $ a year to get free stuff from Amazon. Is a winner for me. Yes I pay it off as soon as my purchase is posted.

[@libertarian4323]

In ~37 years of using credit cards, I've paid a grand total of $0.00 in interest $0.00 in fees. I've redeemed thousands in cash back rewards. That comes out to an average of $0.00 per year, if my calculations are correct. I think of it as a small discount on the cost of everything I buy. I just pay my card off in full every month. Not a big deal.

[@thegreatelv6408]

The only part people are missing is you spend more money with a credit card. There has been a lot of research into it. Some studies say 12% to 18% with some as high as 40% to 80% extra.

[@libertarian4323]

@@thegreatelv6408 Those are studies of large group averages. They talk about what average people do. None of them say ALL people behave that way. Most people are broke and overspend (the "average" person}. But other people are millIonaires who buck the trend. Not everyone is average when it comes to wealth, nor is everyone average when it comes to cc usage. Millionaires and those who use credit cards wisely are not average (and are often the same people}.

[@MyGoogleYoutube]

@@thegreatelv6408 Maybe I do. Maybe I don't. I honestly don't care. The cards gives us tons of points and lounge access at airports for food and drink when we travel. We never carry balances and extract maximum benefits from these cards. There is zero chance I'm walking around with fist fulls of cash and doing bank transfers to pay for larger purchases. I will say this - I understand with absolute clarity why we can enjoy these perks. And it doesn't really set well with me. But other folks irresponsibility with spending isn't something I can do anything about.

[@tomyrobinson3196]

Please give us real numbers. How much did you spend, how much did you redeem, and what did you spend your cash back rewards on?

[@donjohnson1416]

Cool, yer a part of the 23% that doesnt have CC debt. Over 70% of people live paycheck to paycheck and cant handle debt. Do you go to AA and brag that you can control your drinking? Clown.

[@mrs.bm1]

But we don’t pay interest fees if we pay it monthly right?! I didn’t understand when he said he always payed it off but he payed interest every year.

[@SLangel18]

The only reason to have a credit card is convenience. What I mean? Buying something online or for gas because the station doesn’t accept cash. Like No cash checkout in the express lane. But you need to pay at right after you swipe.

[@donjohnson1416]

Um debit cards not directly attached to your main checking will do that exact thing lol lol lol. So whats your excuse now?

[@pishi1990]

my parents always told us if you dont have the cash to pay for something then you cannot afford that item

[@aaronpayne619]

Have never paid a cent in interest, full balance on auto pay. Zero time sink, at least one free trip year.

[@sebern2]

So.... travel/vacation points on credit cards is the poor man's timeshare? Just a thought.

[@ds5651]

Be a responsible adult. Treat them as debt card. I am taking a 10 vacation to Maui just by using my credit cards on my normal spend. I using a budgeting app, invest and have rentals and never carry a balance. Credits are like a knife. It can cut your steak or stab you. Know thy self.

[@donjohnson1416]

BULL

[@ds5651]

@@donjohnson1416 🌴 I would be upset also

[@anthonyrude]

My debit pays 100 percent

[@martianmandela]

Dave answers this question all the time. And while I get he doesn't have 25min to answer 1 question, it'd be better if his given reason was more than "most people miss payments." He should say that 2% of credit card charges could be found on the floor and it isn't worth milking.

[@luis55401]

25 years old here, 2 years using credit cards and $0 in interest paid. Emergency fund built, savings built, credit score built (cheaper future mortgage maybe?), contributing to retirement.... and almost always get 3-5% back of what I pay in dollars. No points, no miles, just straight up dollars that get redeemed into the account balance. Some (not all) credit cards are a good tool, if used within a budget as if it was cash.

[@wavynomad]

Im a credit card rewards user. I use it as a debit card and pay off at the end of the month, using You Need A Budget software to allocate the money to the credit card category as I spend it. This all but ensures no interest paid, but I understand it can be playing with fire. This only takes about 20 minutes twice a week to manage, bot sure where the “full time job” part came in. The video almost had me sold on the idea that using plastic makes you more likely to spend more than you would with cash, however, at 18:13 you then reccomend using cash or debit cards. Whats the difference between spending on a debit versus credit with the way I use it? I still see my available balances decrease just as cash or debit.

[@esonon5210]

You're not their target audience.

[@wavynomad]

@@esonon5210 agreed but the point remains they say you spend more on plastic but they are still ok with you using debit

[@esonon5210]

@@wavynomad plastic informally refers to credit cards. they would prefer you use cash over any other form of payment but they know it's not always feasible.

[@rolandoflores2806]

How about you interview someone whose able to pay off the balance monthly and is getting free hotel stays on vacation

[@nttwashere]

Old post, I realize, but the same rewards for hotel stays can be gained from a taxable investment account that either grows and/or pays dividends. It’s more accessible, can grow indefinitely, and has none of the drawbacks a credit card has (like fees, interest, security issues, poor customer service, etc).

[@rsimmons1980]

@@nttwashere If it comes from my investment, I'm still paying for the trip. With a credit card I receive the award bonus which is often a free flight worth $1,000 or several days in a hotel. There are no draw backs to credit card award bonus if you pay off the debt and don't incur interest and your initial credit card spending is on items you would have purchased.

[@Beekeeper8011]

@@rsimmons1980 I take issue with "would have purchased." Take the Citi Double cash with 2% Cashback. Spend $5000 and you get a hundred back. Not bad, right? But here's the thing. Somewhere on the way to that $5000 you spent more than $100 than you "would have anyway." In fact it may have been a lot more than two percent.

[@rsimmons1980]

@@Beekeeper8011 I spend money for my gym, cable, internet, bus pass, groceries, utilities. These can all be purchased via a credit card and paid off monthly. Spending $5,000 to receive $100 isn't a deal. It is the initial sign up bonus that makes credit cards worth it.

[@Beekeeper8011]

@@rsimmons1980 yes, the sign up bonuses are often very generous, but there are a finite amount of credit cards. I'm at the point now where I have a dozen cards and am moving to trim that number down. I'm learning that, when you pay cash, the transaction is settled, and I don't need to worry about a bill. If you have one credit card and only spend a hundred dollars on basic necessities the world isn't going to end, but the question I ask myself is is this whole game really worth a few hundred bonus bucks per year? Depends on the person, I suppose.

[@libertarian4323]

The woman on the show doesn't understand how credit cards work. They can give you a 1-2% cash back reward and STILL make money, because they make more than that in transaction fees from the merchant (typically 1.3-3.5%). In other words, you can make money from using your credit card rewards and the credit card company will still make money. They don't need to find some way to "trick you."

[@AaBbCcDdEeF]

👍

[@tomyrobinson3196]

The 1-2% cash back still comes out of the credit card company’s profits. Cash back incentivize people to spend more money, incurring more transaction fees in the process. So the consumer thinks he’s getting over on the credit card company, but he’s wasting so much extra money that the credit card company is making up for the 1-2% cash backs with all the extra transaction fees. It takes $10k of spending to get $100-$200 back. Most people blow that on one unnecessary purchase or night out without realizing it. Especially when the credit card incentivizes you to spend that $100 for another $1 cash back reward. You can earn a few pennies on the dollar with credit cards, but it takes superhuman discipline that 95% of us don’t have

[@AaBbCcDdEeF]

@@tomyrobinson3196 my card does not have a prerequisite on how much I have to spend to get the cash back benefits. Apply self control; make good decisions.

[@tomyrobinson3196]

@@AaBbCcDdEeF I never said there’s a prerequisite on how much money you have to spend before redeeming rewards. I’m just saying that most people only get a measly $100-$200 back after $10k of credit card spending. 99% of credit card users are not saving or investing that money. They’re redeeming it for a couple $100 dinners so they can get another dollar in cash back rewards. After that it just takes one bag of chips to put them in the negative. 99% of people won’t defeat 365 days of physical stimuli like hunger, boredom, and intoxication to make a profit off 2% cash back rewards.

[@AaBbCcDdEeF]

@@tomyrobinson3196 exactly. I agree. If I have to spend $100 regardless of the method of payment, I prefer getting a 1-2 percent discount on the expense. which, I understand is a personal choice/preference as much as it is a personal choice to/not to justify for overspending merely because of a discount offered in the form of cash back. Shouldn’t justify for purposely getting hurt and having to go to the hospital just because one has paid for insurance and the coverage for the year hasn’t maxed out. But, it’s a free country, people can justify for whatever they want.

[@alfonsopenaloza9320]

you're not supposed to think about accumulating points, it should be seen as an extra for spending trough a credit card, money you would NORMALLY use. But her what do I know.

[@kams5629]

The cash transactions are usually based on people who have less money. People who spend more, and earn more use credit. So the study was skewed. Also, have some persistence and know how much you spend. Use the spend analyzers and know your budget. I have 6 at 22, and never paid a cent in interest. It’s easy, just have alerts and you’ll be fine. The average person has little skill in knowing their budget.

[@kams5629]

@@thegreatcoward $2000 in value for a year has been a good fee for things I normally spend on. Thanks for thinking of it. You have the tools to have self control. Not everyone lacks that.

[@aaronsacks470]

@@kams5629 Not to mention think about when you've spent cash versus a card. Typically I'll use cash if it's under 20 bucks. I don't usually walk around with hundreds in cash. So I may have spend $100 at a restaurant whether I had a card or not. But typically cards are used on bigger purchases and cash for smaller. It's not a sign people don't spend as much if they chopped up their cards.

[@slchance8839]

The part that always loses me is when they say "they werent taught this in school." I'm a math teacher. We teach it. We've been teaching it for decades. It's those word problems that are boring and nobody like and they groan when they have to do it. which word problems? "Erik buys a car at 5% for $10000, in 3 years...." "How much will Erika have in retirement if she invests $2000/year for 35 years..." etc, etc... It was boring then. And it's boring now. You know what's not boring? Retiring with $2.2millions dollars with only contributing $209/month at 9.2% S&P returns, starting at age 21. $209/month? That's $52/week. Cut out ONLY your $5 starbucks 5days/week (NOT SEVEN days) and you're halfway there. Cut out ONE weekly Chipotle trip and you're done. For life. Is it that hard limit starbucks to weekends and cut out a burrito once a week to retire a millionaire? Did they teach this in school? Yes. This exact example. You get what you put into your education. You reap what you sow.

[@brendondowdy5651]

If fairness they should tell the story of the people who pay bill every single month.

[@donjohnson1416]

In fairness you are in the MINORITY why would he need to help you? Hes trying to help those who have a debt problem. So using your clown logic, I should be going to the AA youtube complaining about how they should talk about the people who can have just one drink at dinner too. WHAT A MAROOOOOOOOON.

[@romantra1311]

1-3 cards, only use it when you have the cash to pay it off right away. It’s not free money. Just treat it like your debit card/cash.

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees

[@romantra1311]

@@paulhumphrey1449 Spoiled Porridge And Mayonnaise

[@paulhumphrey1449]

@@romantra1311 Haha savage comment. Anyways I'm willing to get you the best credit services, both personal and business.

[@EthanCowlbeck]

I’m 6 minutes in, forgive me if this gets answered later. “They aim for you to go into debt.” Then why not approve everyone?

[@DudeMuscle]

This guy was only paying minimum payments tho...

[@estegueydijo....]

They target naive and young naive people they are their money cows.

[@MyGoogleYoutube]

14:16 - I'm so confused. The interviewer asked the guy were you the guy that paid it off every month without fail? Guy says yes I did. Then goes on to detail thousand in fees and interest he paid. Uh - wait a second...... The interviewer doesn't seem to the know the difference between the consumer who doesn't carry a balance and the one that pays it off every month. Big big difference. The one that pays it off every month is the one paying for the one extracting max benefits....by not carrying a balance.

[@cashisqueen3825]

I think they are getting at the fact that you still spend more than you would even if you pay it off.

[@MyGoogleYoutube]

@@cashisqueen3825 Rules for thee not me. I honestly don't care if I spend more. The perks and benefits are worth it.

[@cashisqueen3825]

@@MyGoogleKZbin that’s the beauty of living on a free country! We all have our own choice to make and our risk/reward to determine. If it works for you, that’s great!

[@MyGoogleYoutube]

@@cashisqueen3825 Thank you for your reply :) I like it!

[@cashisqueen3825]

Love everything about this, but the arcade example is not a good one- you’re paying for entertainment to play the game, and then you get a prize.

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees

[@DeionSardines]

Does George kamel have a KZbin channel?

[@DeionSardines]

@@thegreatcoward ok ty.

[@DrJack144]

I like u George & like 90+% of what Dave teaches, but on some level u have to know this topic is a losing battle. The math does favor credit cards. Like Dave says, “This isn’t a math problem”. Personally, I’d try to argue the behavior side rather than the math side for credit cards if u want to discourage people. Truth is people who get to baby step 4 or beyond don’t have much risk by using them either.

[@DrJack144]

I disagree too that utilizing rewards is “ripping off” the CC company. It’s profitable to them actually. 3% transaction fee that they charge the business, they give 1.5% of that to the user. CC company still makes the remaining 1.5% as profit even if the user pays it off in full every month

[@AaBbCcDdEeF]

Agree. Credit card isn’t the cause of (and does not equal to) people spending more than they should. Part of this argument is also in-line with people’s lacking accountability/ blaming external forces. Internal locus of control and common sense are rarities in society, which, unfortunately and inadvertently, might be propelling this type of logical fallacy.

[@justinlybbert3467]

First off the guy with the flights and interest is irresponsible. Second no one ever says we are going to get rich off of rewards. It's a nice brownie point for getting stuff you were already going to get. I hate it when Dave Ramsey says I never met a millionaire who said I got my wealth from credit cards. No one says that. Finally credit cards make money off of you even when you pay the bill off they just cant charge you interest. All stores who accept credit cards have to pay merchant fees so everytime a card is used visa, master., amex, and discover make money. That is why Winco is able to sell their groceries cheaper than their competitors because they dont accept credit cards. So they dont pay merchant fees so they have lower prices.

[@tritonek1402]

I posted about the misinformation in this episode and they removed the comment. I guess they can’t handle anyone challenging their propaganda.

[@inertiaforce7846]

Debt is a scam.

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees.

[@inertiaforce7846]

@@paulhumphrey1449 Let me help you understand that I require no credit card services since debt is a scam and credit cards are a scam.

[@paulhumphrey1449]

@@inertiaforce7846 Credits ain't scam. I'd just drop this point not to convenience you but to broaden your knowledge. You can't always carry cash you either get robbed or spend more than you budget, credits help you take care of expenses especially when you have your credits working for you and paying off themselves when due. The best reason for credits is to make them work for you so you can make profits from what you use your credits for especially the business credits

[@inertiaforce7846]

@@paulhumphrey1449 I use a debit card not a credit card. So everything you said about not holding cash doesn't apply to me.

[@motorcycleartist]

Cashback????😂😂😂😂 how about i just keep the cash....ppl are so gullible

[@911eVoX]

I use credit cards to carry a balance each month. That’s the main reason, duh

[@paulhumphrey1449]

Let me help you with all the credit card services you require, I'm a credit counseling consultant and know what credit services can offer you the best dollar value when it comes to credits, points, miles, and hotel rewards. You can get cash for your credits if you desire. No reoccurring annual fees

[@911eVoX]

@@paulhumphrey1449 I would love that. How much do you charge and what is your number?

[@paulhumphrey1449]

@@911eVoX Gotten to my about page?

[@911eVoX]

@@paulhumphrey1449 ?

[@paulhumphrey1449]

@@911eVoX Have you seen the contact details you asked for on my about page?

[@drama-addictic6462]

Credit card test how STEEL is your spending habits. When credit cards companies reward you by increasing your credit line, they are also testing how METAL your spending resolve.

[@ryanhunsader7038]

Man a lot of broke people screaming in the chat

[@eatpigsnot]

anyone who believes credit card companies actually give away cash and rewards, simply is not paying attention

[@mariastevens1774]

Legalized scammers

[@esonon5210]

I just wish that the Ramsey Network accepted that it gives awful credit card advice. If you have to use outdated "studies", half truths, strawman arguments, and biased anecdotes to support your agenda, your position is not very strong. The Anthony O'Neal part would have been hilarious if it wasn't so pathetic and dramatic.

[@donjohnson1416]

Outdated? lol. Wow yer an i-DOT

[@esonon5210]

@@donjohnson1416 ok clown

[@Misnjef]

Credit cards are fine as long as you never pay interest. Not hard

[@spartan3514]

Also as i finish this show. The problem isn't credit cards, it's your spending habits. Your just blaming the credit card for your problems

[@quintinbonner6128]

Yall actually think y’all getting over on these credit card companies? Lol please wake up

[@libertarian4323]

No one is telling you to "get over." We are telling you how to use credit cards as productive tools. All you need is a bit of discipline.

[@coziii.1829]

I get loans against my own money and then put it in high yield interest Loan is 3.5 While make 6.5 on my high yield savings. So I’m making money on my loans . The interest pays it . Now to credit cards The perks save you money with all the free stuff you would pay either cash . I spend about 5-15k a month depending . If you don’t spend what you don’t need your good. Pay every month . Get the perks get your credit perfect on the score all is good. All that free stuff , I would have paid if I had no credit card . Its lime buy one get one free . If your going to travel it’s easy to get free flights My interest pays all my bills