Can I Live a Debit Card Lifestyle with a Credit Card?

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[@Lenysea]

I think, this is the only time I disagree with Dave. I am debt free. I budget and stick to it. I use the credit card for all the purchases planned in the budget for the week. I pay off the credit card on each Friday as I renew the budget. I understand his viewpoint though: average Americans won't stick to the plan. They WILL overspend. Discipline is the key.

[@eatpigsnot]

@@ALCAN52 and if you just paid cash and debit along the way you'd have saved enough money to buy those tix outright at least twice. the credit card companies and banks are tricking your reward portion of the brain. everyone wants to get something for nothing. even using credit cards properly (no such thing, but just for discussion sake) there is the potential to run into financial irresponsibility, much less potential when using cash and debit

[@eatpigsnot]

@@ALCAN52 just because you buy things you would normally buy doesn't mean you don't overspend. i get your situation may be a little different because you can't physically shop, but it would still be more responsible to have a debit card for purchases and auto deduct for other expenses. i still use cash too, especially for purchases under $100. i hate seeing people swipe for $2. really? you don't have $2 on you?!

[@Kory31691]

@@eatpigsnot You make a fair point here, but I'm against Dave on this one like @ALCAN52. I never use cash unless I absolutely have to. I have swiped by credit card for as little as 10 cents to avoid using cash. The reason? Free money. Every time I swipe my card, I get 1-3% cash back that I deposit directly into my savings account. It's like getting a discount on everything I purchase. If I paid cash, I'm paying full price for everything which makes no sense in my brain. Now, the caveat here is that I pay my bill in full and on time. I have never paid a penny in interest or annual fees to a credit card company and never plan to. Plus, credit cards have fantastic legal protections that cash, and even debit cards to an extent, don't have. Some years ago I had my wallet stolen. I had about 90 bucks in there I never saw again, but when that thief used my credit card at a Walmart in another state, I called the bank and had the transaction reversed and didn't pay anything. I won't claim that this strategy works for everyone or even the majority of people, but for those who are disciplined and able to pay their bills in full every month, a credit card is a great way to build credit and enjoy rewards that cash cannot provide.

[@eatpigsnot]

@@Kory31691 banks are not in the business of giving away money. just because you pay in full on time doesn't mean you don't spend more overall in the long run. also there's the possibility of an emergency that prevents you from paying the bill. debit and credit cards offer the same legal protections.

[@MoneyJoX]

@@eatpigsnot You don't seem to understand what ALCAN52 was saying, or even how this works. He spent the exact amount of money he would have spent anyway. The only reason he even is able to cover those flights is BECAUSE he used a credit card. If he had used a debit card, he would have actually saved less. It's true that most people don't have the discipline to do it this way, but if you do, it saves you money overall.

[@rivka614]

I did it. I am 100 percent debt free. I made my final mortgage payment today. Twelve years early. On my way to a million dollars. Thank you Mr. Ramsey

[@carmeshacarrington6718]

Congratulations!

[@benden5095]

Congratulations

[@adm95m3]

Way to go!

[@iwillrateyou9375]

you cant pay your mortgage with credit cards

[@reestabor3657]

Congratulations! That’s amazing to hear

[@LittleMissRockChalk]

Considering most of Dave’s callers are in Baby Step 2, it’s no wonder he’s so vehemently anti-credit card.

[@ZachsCreditCardGuide]

YellowBrickExpat bingo

[@broganmckoko]

Dave is also a recovering debt a holic. And just like a recovering alcoholic he has a zero tolerance for the thing that tempted him into despair. Some people cannot touch a drop of alcohol and some people cannot handle a single credit card. For me, cash is something I don't track and easily spend if in my wallet. But when I use my credit card total up my bill subtracting that from my income and my savings, that's when I feel pain. I will never use a debit card because of the security problems. It is too easy for someone to swipe your debit card and access all the funds in your bank account. I have heard way too many horror stories a people's entire savings being wiped out buy a fief. Yes you can't have your savings restored but it takes time and a lot of aggravation. If someone swipes your credit card number and racks up a debt, you immediately protest it and keep your money well the credit card company sorts it out.

[@conspiracyomg]

@@broganmckoko thief* not fief

[@matthewwilliams9200]

that's why they are begging to use credit cards too. those babystep 2 peeps are tied to those advertising of the credit card .

[@pahjammer9173]

I use my credit card and pay it off immediatly. And make 400 a year off the cash back. And I have never paid intrest and it's very hard to get me to spend money. It's takes real dicipline.

[@Dr.C_Stag]

PahJammer I’m the exact same. Dave says he is cool with a debit card.... it’s still a credit card because Visa/MC/etc. all back it.... look at your debit card, it has a Visa or MC logo. Plus, it’s just as easy to use as a traditional credit card. I pay my credit card off every single day. No joke. I make about $1K a year from cash back rewards. Why wouldn’t I do that? 🤨

[@pandafox12]

I have 16 cards and am in the same boat.

[@mariegulley7909]

@@pandafox12 why do you watch Dave then

[@lhughes6656]

@@Dr.C_Stag because it's likely you are spending more than it's worth to get the cash back. It's not spending and having the discipline to pay it off that's the problem, lots of people do what you do. It's the psychology behind it. This whole conversation was about how people tend to spend more because there is no pain point triggered when using a credit card. Even the most disciplined individual could fall prey to this and get two candy bars instead of one just because you know you'll pay it off plus get the points from it. That's what he's saying the problem is. Even if it's only an extra $20 a year, it's $20 more than you would've spent had you been using cash or a debit card instead because of the mild pain associated with it.

[@rvarnum]

I have four rewards cards with their corresponding apps on my phone. I use my credit cards like a debit card because I know that I will immediately go to the app and pay that card once the transaction clears. I do feel pain when I spend because I feel it's coming straight out of my account.

[@allenf4117]

I've had credit card for years and always paid my balance each month. I've gotten thousands in rewards and it's allowed my credit score to be over 800. Dave needs to realize there are people out there with self control.

[@edwardrhoads7283]

Yes but 90% of his audience does not. So he has to play to the majority... It is like you are a waiter and 90% of your customers are allergic to mushrooms and ask you if they should get the mushroom swiss burger...

[@squidinkRC]

Edward Rhoads *underrated comment

[@OnlyBlix]

@@edwardrhoads7283 This is not playing to the majority. A lot of the statements he makes on credit cards are straight out false. If he differentiated and explained the reasoning, then it would be better. However, Dave just spews generalities as if it applied to everyone, everywhere.

[@bullforcetrading9995]

Im sure every person who ever got a credit card and ultimately had a credit problem said in the beginning that they were financially responsible and they would 't abuse it.

[@webfreakz]

The study says you spend 18% more with a credit card. At that point a 2% cash back from the card company is a non issue.

[@pawsnotclaws2772]

Rule #1: don’t talk to Dave about credit cards 😂😂

[@MOBMJ]

yea I agree if you have money use your credit card like a debit car meaning pay if off every month. treat it like money you have vs money you don't't have and you can rack up tons of credit card points quickly and fly to other countries with the regular things you spent on anyway.

[@redsoxwinagain2007]

Maxime Mobayen most people cannot handle this and puts you at risk of relaxing your spending. Discipline is important but if your safety should come from the confidence in your ability not to spend and not in that you have a safety. I am that disciplined but my wife is not. It is psychology that cc companies and banks understand well and make lots of money on.

[@paulf1461]

For the average person he's 100% right. Most people can't use a credit card responsibly. Those that do were most likely penny pinchers naturally anyway. If your not the kind of person who buys nothing but necessities and gets excited to save 2% on those necessities don't mess with credit cards.

[@kierah16]

Yes!🤣

[@person-ey2ct]

OMG....hilarious comment

[@IamtheGL]

All of the creative ways callers ask Dave for permission to use a credit card..

[@marytakahashi4275]

Yeah, like they actually need his permission to do so.

[@MiguelRPD]

I mean credit cards aren't evil. It's the user that can't control their habits. Some people are absolutely better off not having one at all. It's like asking an addict to only have an ounce of their addiction. It's not going to work out.

[@MyNameIsCorey]

I know😄😄

[@mikenelson8377]

Mary Takahashi and that’s just it: they act like they need his permission. DR honestly doesn’t care if anyone takes or doesn’t take his advice. Millions of people have taken his advice and they’ve succeeded.

[@TheRSAngle]

@@mikenelson8377 and even more have never heard of him and succeded too

[@mariar9755]

Discover gives me 5% back in groceries, cvs and walgreens from Jan to March. I don't overuse the card. I have to buy groceries anyway and I get 5% back

[@JohnnyTrulove]

I just got a Discover Visa a couple of months ago. It's cool to see the amount of cash back with every single purchase. I pay it off monthly and my limit is not too much.

[@Musicienne-DAB1995]

All right: but you're never getting out of debt, and you will always be paying for your groceries twice.

[@mariar9755]

@@Musicienne-DAB1995 and who said I was on debt🤔

[@FinanceCobra]

Yes, the credit card issuer makes money by offering rewards to the user. However, that doesn't mean that the user can't also make money by using the card. If you're on the edge of your finances and might abuse the card then DO NOT get one. But there is plenty of value to be had with credit cards. I took a trip to Florida and the hotel + flight was all on points for five days. Only thing I paid for out of pocket was food and entertainment.

[@jrsmith2696]

Sean Pullman young adults should not not have credit cards. they don’t spend enough money to rack up the points to make it worth the likely hold they over spend and get in debt

[@AJ-dv7hq]

jr smith there’s plenty of young people who can handle using a cc responsibly and plenty of middle aged people with several cards maxed out. It’s a discipline issue, not an age issue.

[@jordh24able]

Dave "No millionaires brag about credit cards" *Graham has entered the chat*

[@NateOBrien]

I'm entering the chat now too

[@cinderea]

Still spends under 1% of his income with all those credit cards. Discipline is the key. People with no credit are still broke because they are not disciplined

[@robertwigfield12]

@grahamstephan

[@TransitAndTeslas]

And meet Kevin!

[@mathewhiscock7986]

Truuuu. Plus at 2:20 Dave talks about the psychology of how the ease of credit cards can cause the average person to feel less guilt in spending and spend more but anybody who watches graham knows if he buys anything that costs more then 20 cents he starts hyperventilating and seizing so I think graham, and not just him, are exceptions here

[@TexanBoy3]

I use my credit card exactly like a debit. I’ve never paid any interest in all the years I’ve owned one. If you’re a disciplined person and understand a CC is not free money, you’ll be just fine. I feel the same spending cash as I do using my CC.

[@WinterWind]

You absolutely can but for the target audience of Dave's show the answer is most likely they can't. There are those of us who have a credit card and literally clear the balance within seconds of making the credit card purchase (online transfer) or people who pay it at the end of every month because both are using the card like a debit card and only spending money they know they have and then there are people with no self control who shouldn't even attempt to do so. For me personally I have a credit card which I use like a debit card and the only reason I have it not be a debit card is the fact that there's no fee whereas at my bank there is a fee for debit cards. Once a month I get an email saying my credit card statement is available but there is no payment due. You can be responsible with credit, some people just aren't.

[@WinterWind]

@James Marquis I've never carried debt in my life but watch Dave for the entertainment and experience of other people's lives. Not every single person is bad with money or self control but that's not the audience Dave talks to so of course he's not going to promote something that's dangerous to people who are bad with money.

[@terriesmith8219]

@@WinterWind Same here. Use credit card but never had a balance due at end of the month because I always clear what I spend before the amount is due. ( Automatic Online Transfer) Also, I don't over spend simply because it's a swiped method vs cash method. It's called disciple and only buying what is necessary. Also, I've never had debts in my life. I just watched Dave Ramsey to hear people call in for entertainment purposes. When my parents was sick with Cancer, I paid for all their Alternative Treatments (which is not covered by insurance) it's pretty much cash or credit only. No insurance accepted. So if I have the money to cover my parents cancer treatments, guess what, I don't worry about over spending on a credit cards. Lol Again, never had debts in my life. Even my house is paid for as well as my two apartments (which I rent out). Not everyone who tune in to listen to Dave is bad with money.

[@tdmorgenthaler8384]

I do the same... Using real money in public is a bad idea. "but if they steal my debit card I will get it all back." Okay, so while you are waiting to get your money back your mortgage comes thorough, or your overseas and having to deal with real monies being lost. The bank sees your cash the same way you do; a real loss, they are going to deal with as such. We all handle our money the way we chose to. Dave offers one of many ways to do so... Find your path and follow it.... But have a plan, money without a plan is a recipe for disaster.

[@WinterWind]

@@terriesmith8219 Absolutely

[@WinterWind]

@@tdmorgenthaler8384 I don't know a whole lot about fraud or theft reimbursement as I've luckily never had to file for reimbursement however I live in a country where almost no one uses cash and everyone uses EFTPOS cards (literally comes out of your account... like a debit card, but no online payments, hence the credit card for online payment). Anyway, I don't know about other people but cash just annoys me, it doesn't cause more pain from spending it, it's more the anxiety of shoving the coins back into my wallet before the next customer or counting the change given causes me to swipe the card for $1 purchases. I don't spend more or less either way though and even if I did, it's all within my own means, a concept I gather from listening here some people can't understand.

[@CaesarAugustus.]

“I have never met a single millionaire that said they make their money from rewards programs.” *Graham Stephan has entered the chat*

[@CaesarAugustus.]

@Tyler he was a millionaire before KZbin.

[@speedneed573]

Point is Graham teaches you how to maximize rewards on his channel...

[@autohelix]

Using a credit card is perfectly okay and overall is actually smarter if you pay it off every month. Credit cards have extra protections that debit cards do not have. If a company screws you over or someone steals your information it's a lot easier to deal with those situations through a credit card. Unfortunately there's just a lot more legal protection with a credit card. My number one concern is your financial health and well-being. Protecting yourself with a credit card and also trying to have a excellent credit score in case you do need to borrow money, because a major disaster happens in your life is smart.

[@Jeramithehuman]

Yes omg yes. How does Dave not understand this. I use for my business and get 3% cash back on every purchase with no annual fee and usually get around 10K cash back at end of the year. Not saying Dave is stupid but I trust the guy in real life who the movie “Catch me if you can” is based on. He said exactly the same thing you did about the theft of a card.

[@Jeramithehuman]

Vlad Xavier yes it has same insurance but now you have to fight to get your own money back not simply make a phone call and get a new credit card 2 days later. It’s much more complicated to get money back from a bank than it is for a credit card when fraud happens. I’ll send you a link to show you this from an expert. So no I’m not wrong

[@carlton2361]

Creditcard & college debt is out of control...

[@jvolstad]

Great educational benefits in the military.

[@beautifulmess2023]

My son is about to graduate with 2 degrees physics and math then he is joining the military for 5 years -they will pay all his debt! Great plan for him

[@CriticalRoleHighlights]

The two holy rules of credit card ownership: 1) If you can pay off your credit card you don't need one. 2) If you can't pay off your credit card you shouldn't have one. Conclusion: credit cards are pointless.

[@cnpwatson]

I like that theory

[@dj091280]

I definitely see where Dave is coming from. I used my debit card to purchase a new Laptop and during the transaction my hands were weak and I felt light headed lol. I have two credit cards and when I use them the feeling is not as strong even though my credit cards are consistently paid off when used. I don't believe that credit cards are evil but when you look at people as a whole, there are more people than not that have issues with getting into debt with credit cards. Dave's structure might seem a little "too much" for some but as a whole it's a sure way of staying out of bad debt and creating a host of problems that can take a while to get out of.

[@volvotwoseries3384]

This guy is 100% going to keep the card.

[@SummeRain783]

As most do

[@Musicienne-DAB1995]

And he will 100% never get out of debt.

[@dustinstout1798]

It's all about how good you are with money and how disciplined you are. If you're bad with money, credit cards will make your financial life exponentially worse, in fact they are designed to do exactly that. If you're good with money and disciplined, credit cards are free money, and no personal finance guru likes to leave free money on the table. The reason the rewards exist is because of all the Americans who are bad with money making the CC companies tons of dough. For the disciplined users, they can take advantage of this.

[@LG123ABC]

Using credit cards is a little bit like playing with fire. It can be fun, but if you're not extremely careful you can end up getting burned.

[@normanfrank1532]

You can still swipe you debit card even If you don’t have money in your account. The bank will allow that and just charge a fee

[@henrykissinger4479]

A few days ago i tried to purchase a large 65 inch TV for a 1000$,i had the money in my debit card and a lot more but the pain was too big.Paying cash was very painful so i left the store,went home and some time later i was happy i didn't make the purchase cause i didn't need it.A credit card would have certainly done the damage.

[@MoneyJoX]

@T Hambone By that logic, we all should definitely be using a credit card then, to offset the extra cost with rewards points.

[@MoneyJoX]

@T Hambone Nice deflection, but no. You'd be a fool to think that.

[@knocknockify]

I was in the same situation, but with a $129 purse, around Cyber Monday. I ended up not spending money :)

[@kristinagordon7766]

This mantalityis the reason people get into cc debt. You should never spend money you don't have no matter if it's cash, debit, or credit. People that use cc wisely would save that 1k up in cash or in savings and then purchase on cc2 pay it off and receive the benefits of the cash back feature.

[@NaanHD]

That’s seems more like a discipline issue than a credit card issue to me

[@billschlafly4107]

The issue I have with this advice is that if your debt card info is stolen your money is gone and you have to fight to get it back. There are legal protections credit cards have that debt cards don't have. The bank may say that they extend those protections to debt cards too but it's still your money that you have to fight over. Keep control of yourself and pay it off. Oh, as a side note you get rewards too. If you have no control then don't get a cc card until you learn to control yourself.

[@MMA-mh9uv]

The answer is yes, if you are disciplined and pay you bill every month. Here's the thing though, think about how stupid the average person is...now realize that half of everyone else is stupider than that person. My wife and I each have a credit card with a fairly low limit and all expenses are put on them. Dave's stance on credit cards isn't really meant to apply to everyone, it's more of a blanket statement so dumb people won't overspend.

[@MMA-mh9uv]

@James Marquis I sure did. Been following Dave for a long time now. Using a credit card doesnt cause me to spend more to try to get "points". I use a credit card because it is safer and more convenient. Dumb people allow a credit card to influence them, so my original point still stands.

[@terriesmith8219]

@@MMA-mh9uv Agreed. You're 100% correct. ✔💯💯💯💯💯💯

[@TheRSAngle]

@JESSICA BRYANT thats what the emergency fund is for...

[@eatpigsnot]

while plenty of irresponsible morons get into trouble with debt and credit cards, plenty of responsible people do as well. think i'm kidding? watch IOUSA, Maxed Out, and In Debt We Trust. Dave is in one of those for a minute, but none are by him or about him. also watch BBC special The Men Who Made Us Spend and PBS Frontline episodes The Secret History of the Credit Card and The Card Game

[@MMA-mh9uv]

@JESSICA BRYANT that's what a fully funded emergency fund of 3-6 months of expenses is for

[@namekgodpiccolo2237]

Caller: I want to use a CC to get the reward points for my 250k student loan, 456k mortgage and 47k sailboat. Dave: Sell the car.

[@dancer1]

Lol

[@jjwrenmusic]

I make a payment with every credit card purchase. I spend $4 for a gallon of milk at the grocery store, I make a $4 payment immediately to that credit card. For 2% cash back, by the time December comes around, I have Christmas paid for with the cash back I have earned. I see no harm in that when I pay the credit card directly after a purchase and deduct it from my checkbook.

[@rs232killer]

The biggest problem with debit cards is that if the card or the number is stolen then the money comes directly out of your account and you have to fight to get it back. If your credit card or number is stolen they have to fight you to get the money. I have had a credit card number stolen twice and never had an issue getting the fraudulent charges dropped. I have a friend who only uses a debit card and when his number was stolen it took months to get roughly 95% of his money back. When it comes to fighting fraudulent charges I'd rather be the one in control.

[@skibum6422]

Sorry Dave, I love your program but I do not see the difference between the two. A debit card is not a $100 bill either. I've never met a millionaire that got rich because he used his debit card either. I use my credit card like it is a debit card and pay it off every month without fail. I don't use machines at hotels at all because they are way over priced.

[@RandomGirl380]

Strongly disagree with you Dave. Use the credit card and pay it off. You get rewards and really good credit score. I started my rewards card it's going well and I will be cashing out in 2 months. I still feel pain using my crediy card, that friction makes me remember to stick to my budget.

[@WhiteWingSTI]

would you then agree that not everyone have the same self control/discipline like you do? if so, then that's exactly what Dave is talking about.

[@erikrohr4396]

If you're using a budget though, Dave's argument is not relevant.

[@THEREALBRYCEH]

Erik Rohr preach it!!! Agree 💯 Be smart with your money, live by your budget, and pay off the cards to simply leverage your money for points, miles, and cash back. That’s all! Haha! I don’t get why no one understands this.

[@HelloThere-wk8ww]

I disagree with dave here. I pay off my credit card daily and only use it on things i would pay any way, like groceries and gas ir anything else i will need to pay. I dont see a downside. The cash rewards has really built up and i will invest it. I dont buy things i dont need.

[@retiredmanager1098]

Exactly- cash back card and pay it off each month.

[@ernestoberger7589]

Dave Ramsay's work which is deeply rooted in reality and eternal principles instead of in financial theory is really ground breaking. When he says: your income is your most powerful wealth building tool- is really something. Forget about credit card miles, the spread on your investments, etc just focus on these simple, sequencial, and sound steps and you'll get ahead -amazing!

[@beemo9]

Millionaires also didn't get all their money by clipping coupons, comparison shopping, choosing a savings account with a higher interest rate, and all the other little things we do that boost our finances. That doesn't mean we shouldn't do the little things. I agree that the average mindless consumer spends more with credit cards, but disciplined people like me who use a strict budget and have self-control spend exactly the same with a credit card as a debit card. It's only 2% cash back, but that's 2% more that i can put toward investments.

[@jamie49868]

BMO, Dave would be the first person to tell you to use a coupon for the rice and beans. He is wrong about this. The question should be do millionaires have credit cards they use properly. Dave would get a totally different answer, but it wouldn't support his argument. It all adds up. Dave should know better.

[@rosen380]

@@jamie49868 "The question should be do millionaires have credit cards they use properly." Exactly, perhaps some cause vs effect "mistakes" in the data analysis.

[@theboxer5]

I bet 99% of the millionaires out their use credit cards to buy stuffs, except that fool Floyd Mayweather Jr. lol

[@brentsmelser]

The statement “No millionaires have made their money by credit card points” is true, but also irrelevant. If you are diligent in paying your CC statement every month, and wise with your purchases, you can certainly win with a credit card. I use my CC for all regular monthly expenses that are required to be paid, but are largely non/variable (utilities, cable, cell phone, internet, etc.). I use my points every 1-2 years for airline flights for our family vacation. I’m in BabyStep 7, and I love Ramsey, but I disagree with this one.

[@euenfheiejrj]

It’s so stupid. Obviously no one has gotten rich from coupons but that doesn’t mean you shouldn’t use them.

[@gregoryguerrier963]

Dave Ramsey is right about this because most people nowadays don't have any discipline. I myself though have made thousands of dollars in cash back from only using a credit card for all of my purchases. I didn't fall into the Trap of buying things I don't need because I used an app for my bank account and every time I purchase anything with the credit card I pay the credit card bill immediately from my checking account. Thus, I always know exactly how much money I have so I never overspend and I never have a credit card balance but I'm averaging about $77 a month on cash back. Each year I use the cash back dollars to help pay my property tax.

[@lifeofrichard]

He didn't answer the question. He was asking to use a credit card as his debt card. To get the cash back and or point. You have the same spending habit with credit card and debt card. Why not get the protect that a credit card has over debt card. Plus most people don't carry cash anymore.

[@vetman544]

Richard Feinburg he did answer the question but just jumped straight to the psychology of spending. The concept of friction that Dave explained is true and has an effect to most people over time. Meaning, initially one that uses the credit card like a debit card will be diligent and buy things they only would have brought anyway and no more. But over time, most people ( and I stress “most people”) will loose that discipline and the psychology of friction will take hold and lead us to spend more. Only those who are super diligent about their spend over a long time can benefit. He also touched on how its often not worth the reward. Most cash back or point rewards are worth 1-3% so in order to earn enough points book a $1000 round trip airfare entirely with points, you would have to spend ~$50,000 on the card (2 points per dollar rewards card, 1 redeem point is worth 1 cent, which is also equivalent to 2% cash back) in above example you need 100,000 points to pay for the $1,000 plane txt. So you have to spend $50,000 on the card to earn the 100,000 points at 2points per dollar aka 2x point rewards cards.

[@311allmixedup]

My wife and I use a credit card for everything that gets paid off every month early. We haven't even paid one cent in interest, it keeps our credit active and in good standing, and so far we have over 1200$ in cash back rewards. We aren't getting rich off of it but we do have an extra 1200 that we wouldn't have had otherwise. We have had the card about a year.

[@DavidMossMGS]

311allmixedup stupid decisions You should look at point based cards a lot of time you can get way more points on everything compared to cash back cards Downside is though you’re more limited with your options and cash is king

[@vee9043]

You would have saved double what you earned in "rewards" if you'd use a debit card.

[@DavidMossMGS]

Ashley Dawson how stupid are you? If you were already going to make the purchase anyway If you use a credit card you get something back When you use debt you get no purchase protection and no rewards back or extended warranty Extended returns Bunch of things

[@jamie49868]

Ashley I just purchased new kitchen cabinetry. I saved up to do so. I put the whole $8,437 on the CC. I paid the card in full the next day. Either way I was going to take out 8437, but since my CC is 2%, I got to put back $168...how stupid of me. Ash, I can't wait to make the same mistake when I pick out my granite tops. Good gravy you are dumb!

[@DavidMossMGS]

jamie t what a beautiful comment God Bless You

[@mattyp3119]

Question: if i use the card but pay it within my app on my phone each day (not every month but each day) is it worth it? I think yes. In 4 years I've payed 0 in fees but gotten 3% cash back on every purchase I've made and I put everything through my cards. It's like a 3% raise in my salary.

[@Jeramithehuman]

I pay my bills electric, car insurance, groceries etc... Also my business purchases are made with credit cards like a debit card payed off as soon as a purchase has posted. No toys, nothing unnecessary. I have to disagree with with Dave on the credit cards. My annual cash back is around 10k. Here’s another thing, if my credit card gets stolen no big deal I call and get a new one and let them sort it out no problem I’ll have a new card in 2 days. If a debit card is stolen now you have to fight to get your money back and I’ve had both happen. This is the best about the cash back, IT’S TAX FREE. It’s a rebate. I agree with Mr. Ramsey on everything except the credit cards. If I don’t have the cash on hand to make a purchase I DO NOT BUY IT. It’s really that simple.

[@airops423]

Completely disagree with Dave here. If all a credit card did was provide 1% cash back on purchases, I might agree with him. But it does so much more: -Sign-up bonus: my most recent card paid for my trip to Hawaii with its sign-up bonus. -Rotating categories: up to 5% to 10%+ cash back on certain purchases. -Credit score: paying it off each month builds credit. -Travel protection: travel insurance built-in to the card. -Reduces risk: credit cards carry the least amount of risk in the event of them being lost/stolen vs. cash and debit.

[@sarasarah3404]

Dave advocates to not have a credit score as if you're financially set you pay everything in cash

[@airops423]

@@sarasarah3404 That's an even more ridiculous ideology though. Pay for your house in cash? Uh, no thank you, when I can get a low-interest (thanks to my high credit score) 30 year fixed rate mortgage and invest all that money for much higher returns. Even for cars, my brother got a 2.35% loan for his Tesla. Could he have purchased the car in cash? Of course, but that would have been stupid. Why have money tied up in a depreciating asset when it can be invested instead? Dave's only counter-argument to this is "I have never seen someone become a multi-millionaire because they borrow money at low-interest and invest it." That's a stupid oversimplification of what's going on.

[@sarasarah3404]

@@airops423 I agree wth you. I think most ppl pay off their mortgage during the debt snowball then just heavily invest remaining income. And only use cash for everything.

[@airops423]

@@sarasarah3404 Paying off your mortgage early often doesn't make sense though, especially with today's low interest rates. Much higher returns elsewhere. The only advantage of paying off your mortgage early is if you have like a zero risk tolerance and need a guaranteed return (albeit a small return since it's low risk, low reward). Maybe if you're retiring soon this is a good idea. If you're in your 20s or 30s and bought a house, it's generally a much better idea to take on a bit of risk and invest the money in a diversified index.

[@sarasarah3404]

@@airops423 agreed.

[@kierah16]

I look at Dave's philosophy on finance like level one- ground level financial education. Great for the general public. You can stay here and be okay with next to no risk, but going beyond this level of financial education is an individual choice and requires immense responsibility. Choose wisely (based on knowledge of self).

[@thedman454]

Just Got APPROVED For The Chase Freedom Less Than An Hour Ago

[@flash12319]

I just got my AMEX blue cash 👍🏾🤣

[@dezalex1174]

I just cash flowed a trip to Disneyland and earned rewards points because my bank offers a debit card with rewards points on every debit card transaction I make.

[@V4NLIFE_CANADA]

You guys didn't get the memo ehh?

[@ricoesqueda2702]

Lol freedom yeah 😂

[@deepeshchetwani6250]

Now spend all the credit limit and never pay back 😂😂😂

[@rustybell2722]

To me, the rewards are just a way to do extra, not the way to accumulate wealth. Also, in my brain when I pull out a credit card - it is painful because I mentally deduct that amount from my checking account. When I get home I set up a payment for that amount in my bank's bill-payer program & assign the purchase to a category in my budget. I don't wait until the end of the month. I haven't paid a fee to my credit card company in decades. Credit card can be a tool as long as a person is mature & disciplined in their use.

[@RobotMowerTricks]

@7:45 lol... the cash buyers did not spend 178% less... that's impossible (100% less=zero spent) The credit card buyers spent 178% more (8:00), so that means the cash buyers spent 64% less. Dave is always calling people stupid. Someone has to call him out.

[@dizquier91]

If I spent 40 one month then the next month I spent 80, that's a 100% increase.

[@dezalex1174]

If a cc buyer spent 8 at a vending machine and the cash buyer reduced by 178% its 4.49. I work in business and this is done all the time.... likewise take 4.49 and multiply it by 178% and you get 8.

[@meh6346]

Credit cards: It’s the objects fault Guns: it’s the owners fault

[@phukyew14]

Whoa people still use logic in 2019? 😭

[@beautifulmess2023]

Keep my guns out of this conversation

[@christopheri6036]

Exactly

[@waynejamel6703]

I believe wholeheartedly what dave is saying... however spending cash feels better for me because my my bank account didn't go down. Spending cash is still painful

[@Kenz3]

Discover card can give up to 5% back and if it your 1st year they match u at the end of year basically getting 10% back I’m not trying to get rich with my card but if I’m gonna buy something that $300 why not get some money back

[@iceman2921]

@Liberal Defendant they reel you in.... correction please. No one forces you to use that cc. You reel yourself in, not the cc company. End of the day.... if you have cc debt. You did it to yourself. Not "they".

[@JGuagliardo22]

It's just the group of people Dave caters his show to. COULD you use a CC and pay it off monthly? Yes. Does a credit card cause you to spend more? Yeah...if you aren't sticking to a budget. I use my CC for my recurring expenses like car ins, electric, etc and pay it all off monthly. I've paid off 70k in debt in 18 months. Dave has his concrete plan because of the majority of people he gears his show to. These people are not responsible after starting his plan if theyre still allowed to use CC. That being said, my fiance is on the Dave plan and because I understand her previous spending habits, she is NOT allowed to use CC. She does cash or debit with everything.

[@jamie49868]

kenz200g I just purchased new cabinetry for my kitchen. I saved up to do so. I put the $8,437 on my card, went to my bank the next day and paid it off. My card is 2%, so I got $168 back. Either way I was taking $8437 out, now I get to put $168 back in. Yep, that sure was a dumb move on my part...can't wait to charge the granite counter tops and make that same mistake again.

[@lucaslevon8466]

Watch this video dummie.

[@mikemayo4812]

@James Marquis you can listen to what he said and still disagree with him. It's his opinion. I feel the pain with credit just as much as I would a debit card. I log in my online account and check my balance daily.

[@beastfromtheeast9318]

I tried doing just using debit card after paying my credit cards off and it’s almost impossible to budget when you have young kids. We blow the budget every single month so I said F it and just starting using my bank credit card. Less stress for me, just have to pay it off every month and I can get points. I suggest using a credit card from your bank so that you can transfer payments directly from your checking account as soon as you get paid. I get Dave’s reasoning but you just have discipline with this method.

[@eulinebotha]

Um we have 2 very young kids and we do not blow the budget every month, seems like you have a problem. Do not blame your spending habits on your kids!

[@Mark-oc9gz]

I’ve been doing it and I now have a free flight to Germany for my study abroad trip this summer. Just be responsible about it and you’ll be fine but the moment you become irresponsible cut up the credit cards and pay in cash.

[@thedailyvlog2333]

its not really free. you paid

[@rosen380]

@James Marquis Do you get paid by the hour to copy/paste, "Wow, apparently you didn't listen to a word Dave said. SMH!" replies for every comment that disagrees with Dave Ramsey? Or is it a flat-rate?

[@jamie49868]

rosen380, that idiot probably pays to post with his credit card. Peace Bro.

[@georocks_]

This is so true Dave, i just took all my CC reward points now, exchange it for an item and I close my CC at the same time. no more CC! Debit and Cash now.. In my country i never used any CC only cash but when i came here in Canada they introduce me into using CC. i really regret falling into using it, but i learned alot from it. Experience is really an expensive teacher to have. lol. I'm really glad we have people like Dave. helps me renew my mindset and a heart to help people in there finances.

[@americanmade36merica99]

Always good stuff on the, Ramsey Show. Never gets old, it's also interesting to hear people's stories in life.

[@tinamoreland9294]

I just starting listening to dave ramsey. I found his show by accident and only 1 person I know of all the folks I asked had heard of him, smh. Anyway, I agree with him on this point. I was excellent with paying my 1 and only cc off monthly, so no fees ever. This week, I convinced my husband to put the cc away and start using the envelope method. I am 100% sure prior to this week, using our credit card for groceries, we always went over our monthly budgeted allotment. Using cash only, no way that will happen and even better, I do have a more visceral response to laying down cash.

[@Light-vu6ws]

Dave is treating credit card with unplanned purchases only. What if you plan 50$ a month for personal purchases and you buy 50$ worth items online? There was no “impulse”. You pay back your credit card after. Credit cards can be used as a tool, unlike what Dave says

[@dragan176]

It's a good point. I think being on a budget is probably the most important thing

[@eatpigsnot]

no one is saying you don't buy things on a credit card you wouldn't normally buy anyway, but everyone spends more using a credit card than if they used cash or debit

[@Light-vu6ws]

@@eatpigsnot Well, Dave says that lol. I don't know what you have been watching.

[@jamie49868]

No judas, not everyone spends more. Sorry that you lack the self control and discipline required to act responsibly with a CC. Not everyone is so afflicted. Want some advice...take financial advice from those who can manage a CC properly, not from those who can't. Peace!

[@eatpigsnot]

@@jamie49868 everyone overeats at the buffet, everyone spends more using a credit card. not on every single transaction, but in the long run overall. stop thinking you're above it all. you are not

[@markbsb7176]

He knew the answer lol he wants permission.

[@lastempire7302]

I've used my credit card like a debit card for more than 10 years and I get cashback/rewards payout worth of hundreds of dollar annually without paying a cent on interest. Don't tell me it can't be done!

[@PeterGeras]

I use my credit card so that I can have a good credit history for when the time comes that I need to borrow for a loan. This also means that I get to learn the discipline of paying something off regularly.

[@MyNameIsCorey]

Yes if you're disciplined its absolutely possible to manage a credit card but we all know that the masses don't have have the discipline to manage credit debt half thinks its free money the other half have the buy now pay much later philosophy then here comes that old friend interest rates coming to over stay their welcome...so the best way is to just not have a credit card and pile up as much cash as possible....the one thing you can't argue with Dave's system is when you have no debt you have money point blank....

[@dr.bradshaw]

I always find it humorous when people comment and say “I am the exception with my credit card, I pay it off every month, and I collect the points, therefore Dave is wrong and I am right” Ok? Cool story, you do you but the rest of us aren’t going to do it. Either way, do what works for YOU.

[@waynejamel6703]

Everyone's the exception to the rule until they are not

[@cj7688]

Best credit card use explanation from Dave I've seen so far. I previously argued against him, thinking this logic only applied to 90%... because "I have always used credit cards for my personal financial betterment." Now I think I painted a prettier picture than the reality. I may have been in the top 10% to 1% of responsible credit card users, but people who can benefit from them are really only the most disciplined and dedicated 0.1%. If you have the discipline and have done the research to be in this group, you probably could have spent your time doing something else more lucrative.

[@osubeaver9976]

I wish Dave would get off his "no exceptions" credit card rule. Using a debit card is literally the same amount of "friction" or whatever he wants to call it and to discount the benefits of using a credit card is to be disingenuous. What he always fails to recognize is what to me is the most important aspect of a credit card: It's not my money until I pay the bill. In this day and age, with both online and brick-and-mortar retailers getting their customer info hacked regularly, I would much prefer that a criminal get my credit card info instead of my debit card info. When somebody gets your debit card and cleans out your checking account, that money is gone until you can convince the bank that the purchases were fraudulent. When somebody gets your credit card and goes on a spending spree, that's the credit card company's problem. Using a credit card for a planned purchase gives you leverage and another layer of protection that you wouldn't otherwise have if you used your debit card and he should at least mention it in the discussion.

[@michaellandry2227]

Indeed. The credit card provides a layer of insulation on my bank account. Years ago, when an insurance agent messed up a life insurance draft on my bank which resulted in overdraws on my account, I have been careful about automatic bank drafts. I have insurance drafts made from a bank separate from my regular bank and I carefully monitor the balance. I have automatic drafts to pay bills from my regular bank account but I monitor that weekly. I will not use a debit card because I don't want just anybody randomly in my bank account. In addition, if I get into a dispute over a bill, credit cards allow for me to call time out while I resolve the problem and have protected me several times when someone made false charges. I agree with Dave's reasoning regarding friction, but quite frankly, my low friction medium is cash: give me cash and I blow it. With a credit card I'm carrying a mental total in my mind all month with the sober awareness that I have to pay that bill at the end of the month. It keeps spending in check for me. This is my only disagreement with Dave, but that has to do with the current spending habits of me and my frugal wife. Otherwise, I'm glad that about fifteen years ago Dave taught me how to get out of $16k in credit card debt (without cutting up the cards) and to pay off our home 17 years early and our rental house three years early.

[@r3hab116]

I disagree with the point about pain using cash. When I have cash I don't feel anything as it leaves, what hurts is when I see my online bank account getting money taken out of it.

[@eatpigsnot]

they both hurt, but cash hurts more

[@r3hab116]

@@eatpigsnot that may be true for you, I'm just saying how it works for me. Cash feels like free money. What my bank account says feels like the actual money I have

[@vee9043]

Same. Cash does nothing for me, but seeing my balance go own in online banking definitely does.

[@rosen380]

@@@vee9043 / @Justin Smith -- Agreed. It is almost like everyone is a little different and perhaps hard-and-fast rules don't always work. Similar to debt snowball vs debt avalanche. in some cases, where the person has a lot of small debts at low interest rates and some large debts at high interest rates, debt snowball will eliminate individual debts more frequently and if that is what motivates you, then that is right for you. But if you are motivated by seeing your total debt decrease, then starting with those larger high interest loans will have a bigger impact. DR just assumes everyone is the former.

[@themetadaemon]

Air miles are a scammy as time shares. Get a Dividend card if you stand to net more than the yearly fee.

[@whywouldigivemyrealname5162]

Hey Dave. I use my rewards from business travel for my vacation each year. Money that I’m required to spend regardless and get reimbursed for allows me to enjoy myself each year for near free. I’ve saved about 10k on vacations in the last 4 years. I also have more security around the card. I don’t have time to explain that to you as the intricacies of digital security will always be past you.

[@jaredselling6259]

I have to respectfully disagree with Dave on this one point. I make all small purchases (groceries, gas, small bills) with a credit card that has 1.5% and rotating 5% cashback rewards. I consistently pay it off the second I get the notification that my balance has updated. Basically, it is a debit card because I only use the credit when I've budgeted the purchase ahead of time and the money to pay it off is is already in my bank account. As a result, I accumulate a free 15 bucks a month or so and have a 750 credit score when I go to make a down payment on a house.

[@robocop581]

Then why are you watching his show if you know he's against credit cards? If you don't abuse alcohol, would you attend or watch an AA meeting? His show is targeted at spendaholics. Are you a spendaholic?

[@D3strocion]

Robert Halili His show isn’t only about credit cards. Also, it’s fun hearing all these stories people get themselves into. I’m always speechless when someone call and says “I’m $50K in credit card debt”. Like how?? How do you spend that much!!

[@adelaidedanielle9898]

Meet the credit card master, if you need help to clear your credit card debt payments. No upfront charges. He cleared away $29000 on my credit balance was given another cut in my credit card. Very good and reliable, if not Dave wouldn't have pick my call and introduced me to hacker Ghost. Contact Ghost on [phone] for your debt hacking payment method. Thanks Dave. You're the best Ramsey

[@NoRegrets001]

I use my credit card to pay my bills before they're due, typically on the 1st of every month, while having my bill notebook showing that the bill isn't paid. When payday come around I pay the bills that are due, which is money put on my credit card, then cross that bill off my list showing that I have paid it. I gain points by this and use them to get so called discounts on everyday items i.e. diapers, wipes, baby food or household items.

[@Musicienne-DAB1995]

You could have gotten the same discounts by paying for everything just once with a debit card and getting coupons.

[@ShondaHector]

I've had an AMEX Gold Card for 30 years. I pay $95/year to have it (Thinking about closing it now because I don't use any of those benefits.) Yet, I've paid it off monthly for 30 years! I don't like purchasing online with my debit card. I also have a credit card with GAP that gives me rewards. I pay it off weekly usually...never longer than a month. I purchase ALL of my clothes through the GAP stores for free through those rewards. I don't buy clothes anywhere else. If I go out physically shopping I would pay cash. I'm not a shopper. My brain activates as soon as I send those payments online. I do use cash for groceries to keep the grocery budget. When I can use cash, physically I do. If online...I use a credit card for protection. A couple of years ago we used a credit card to purchase a car. Then as soon as it hit the account, we sent the money to the credit card. We received $300 cash back. We tried to offer cash for a lower price, but they didn't care. So we took the rewards. I think some people can do it. I'm frugal. It works for me.

[@MOBMJ]

yea I disagree if you have money use your credit card like a debit car meaning pay if off every month. treat it like money you have vs money you don't't have and you can rack up tons of credit card points quickly and fly to other countries with the regular things you spent on anyway.

[@theyluvloki]

Dave is gonna flip when he finds out they put apple pay on vending machines.

[@96ruly]

How do you feel about 3% back on gas? I use my credit card strictly for that and it is a bit smarter than just buying gas and not getting anything in return. Thoughts?

[@spazzman90]

4% back with Costco + the lowest prices on fuel in town.

[@SmallSpoonBrigade]

Dave, for folks who have debt, you're likely right about not using credit cards, as they can make it easy to overspend. That being said, credit cards come with benefits that aren't generally available on debit cards. For example, they come with warranty extensions and $0 liability. If I ever rent a car, the card gives me free insurance for the rental. Plus, the fact that it's the bank's money until you pay your bill, not yours, it's far more likely that the bank will be serious about protecting you against unauthorized charges. I do think, you've got a point, for people who are in debt as the debit card will limit your ability to get into trouble as the money comes out of your account relatively quickly, and you'll see the balances dropping. Especially if you've got that $1k emergency fund and some form of overdraft protection.

[@jg-xx8oh]

Well said Dave! You Shine !

[@ashtonmccants]

I don’t even know why people bother asking Dave anything regarding credit card usage. If you are travel hacking, you approach it with intent and purpose. It is not for the average person and requires a lot of planning to use it effectively. The goal is to not spend more than what you already planned on spending anyway and never spend more than what you have in your checking account. Pay the amount off before the statement date to avoid paying interest. This method is used to gain value in money that you already planned on spending. People get messed up when they carry over balances, buy items they don’t need or lose discipline in the process. I get his take on this, but he is approaching this concept with the average credit card user in mind. “Buy more than what you can afford at one time and pay ridiculous amounts of interest on carrying over the balance.” There is a reason credit card companies limit how many sign up bonuses you can get, how many cards you can apply for within period of time, etc. Someone that knows how to play this game can get tremendous value with this method. You can realistically abuse the system if you know what you’re doing. Credit is not bad, it is just bad in the hands on the wrong people. Same with money. Educate yourself on different strategies. There is no “one size fits all” method in this game. If traveling for free is a strategy you would like to incorporate while building wealth, travel hacking is an excellent strategy to deploy. Just do your homework and get cards that have significant value for you and your lifestyle.

[@jacobm1001]

I tried an experiment. Cash vs credit. 0 consumer debt to start . 6 months credit paying off every 28 days. 6 months cash only. Spent on average 400 per month more on credit. We ( I ) do spend more when being detached from my money ( time ) . Thanks dave for helping me change my life for the better. I'll be 0 debt ( mortgage too ) in 36 months or less.

[@SkinnyAnimus]

Dave is completely wrong about this. If you are not stupid, it doesn't hurt to make some extra money with the bonuses. He is too emotional about this. Just have some self-control.

[@jaypence332]

Quicksilver is the easiest because you get 1.5% on all purchases and unlimited! If I spend $20,000 a year on it at the end of the year I receive a check for $300! Was it worth the hastle. Also where I live gas stations charge 10¢ more a gallon if using a credit card

[@parkerschmitt1594]

One thing I do disagree with is if you pay it off in full online every day it's often better than a debit card because when a debit card is stolen you have to argue to get you money back. With a credit card if it's fraud you don't have to pay and don't have to fight to get your money back.

[@CharlesTines]

I started using simple bank which lets you set “Goals.” They are basically like digital envelopes inside one checking account. I find that using my debit card from that bank I immediately see how much I have left to spend and to me it seems I spend less than with credit cards or cash.

[@CharlesTines]

Honestly is think simple bank is the best for tool to do the envelope system digitally. Just go to simple dot come /friends/CFGDT5K

[@Countcho]

I have a great credit score due to using my CC all the time and paying off every month. Never paid CC interest in my life and been using for past 7 years. I dont see the issue?

[@dragan176]

Have you heard Dave talking about the credit score? Why would you want a good credit score?

[@eatpigsnot]

issue 1 you spent a lot more the last 7 years than if you just paid cash and debit. issue 2 anyone can have a problem where they can't pay the bill in full

[@Countcho]

judas brute no i have not. I never spend more than i need. I save 90% of my paycheck

[@Countcho]

judas brute i treat my CC like cash. I dont think of it as credit

[@Countcho]

dragan176 i need a good credit score for when I get a mortgage in the future

[@paulaaquino5847]

been paying of my cc every month and accumulated enough travel points already, but switching to one now only for emergency fund. Stayed within the budget, but always maxed out the budget 😅 Now, I've never been more frugal and saved up almost 40% (from 20% using cc) of my income for investments and etc. The "pain" is real with physical cash!!!

[@clarkclarke]

Are you able to use those travel points now ????

[@dogan6070]

I agree with Mr Dave. When I spent cash. It hurts more then spending credit card. I'll stick to Dave's plan. It's working for me. Cash is king!.

[@DuMStuFFrc]

I've disagreed with Dave on this point until watching this video... Now I'm thinking about it

[@WISHBONEL7]

Walter Gramer - Have those FACTS soaked into your hard skull over the pas 5 months ?.

[@OnlyBlix]

@@WISHBONEL7 Those "facts" are irrelevant since he always argues you should budget. If you budget, it doesn't matter if you're spending cash or credit. If you budget 50 dollars for gas a month, then the difference is you'll be getting a 5% discount every single month on those 50 dollars using a credit card vs not using one. Dave treats the financially-mentally ill so he can't say credit cards are good.

[@WISHBONEL7]

@@OnlyBlix Dave is giving the same advice that I give , which will work best for most people , most of the time. .

[@kashfortheking]

I think a lot of what Dave says comes from his experiences when he went over the cliff. He feels like a lot of people have no control (which I agree with), and so his top goal is to stop the bleeding (credit cards). With that said, if you are religiously paying off your cards every month (WHILE STILL budgeting), I don’t personally see the issue with getting the free points.

[@voiceofshanghai9681]

Dave Ramsey is a senior citizen, living a long time in the past without a credit card or a debit card, instead, with cash. That's why he insists that people will spend more on credit card compared to cash, which is true, for his generation, because credit card is something different from what they are familiar with. Young generation who grew up with debit cards or credit cards doesn't seem to be likely to spend more with credit cards than with cash, because these are just a kind of payment methods for them, just like cash to the older generation. I don't think they will spend more if they use credit cards. Don't make me wrong, I don't deny that there are lots of people in credit card debt. I just don't agree with Dave on the idea that people spend more with credit cards than cash. I think this situation varies in different generations.

[@teampenit]

yeah yeah, you just got out of Mom's basement and already know waaaay more than that ol dinosaur that is a millionaire...and those scientists that ran the various studies he cites are probably like WAAAY over 25 and probably only interviewed really old people like in their 40s man, so what do THEY know. Come on, man, ya'll millennials invented computers and credit cards, amirite?? What could someone HIS age know about the new fangled innovations HIS generation invented? Let me clue you in....the people that invented the product, know more about it than you and I promise the first thing they know about it is how THEY will make money off it. No credit company, no internet company invents anything just for fun.

[@1800Beatdown]

Funny, I knew all of this info that Dave is telling us but I kept finding a way to justify it. So glad I found this channel

[@AndyAJ]

It all goes back to self control. I had an unexpected emergency surgery I had to have and it cost me almost $8,000 in medical expenses. Instead of just writing a check or paying cash all upfront. I did open a “rewards card” and have earned like $1,000 worth of travel credits. I had the cash, but instead used that card to at least get something for my trouble... Paid the card off instantly, never paid interest on it.

[@weston407]

if it isn't costing you anything extra (no annual fees), you're making a little extra with it (whether it's actual money, flight miles, or gift cards, things that can help you enjoy life without hurting your bank account), and you're disciplined enough to pay it off monthly and not accrue any interest, i don't understand what would be wrong with it

[@heavihandzthearch1322]

I don't even use my debit cards anymore. I pay all of my monthly expenses by cycling between 4 credit cards while being mindful of how much of my own money that's in my bank accounts. Yeah... Sometimes I take liberties but if I can't pay for it twice, then I won't purchase it once! If you are responsible, disciplined, pay your balance on time, in full, and restrain from using the card/s until after the statement date/s you'll have peace of mind. If $5 burn a hole in your @$$, then a $1000 credit limit isn't for you!

[@alexb8053]

I agree with Dave you do spend money when your using credit. It’s all about self control!

[@thatsyrianguy487]

how I do it is, I check my checking account before I use my CC and if I can't afford to buy that items multiple times over, I don't use my CC

[@sikeditionperformance7178]

I have real estate investments using credit cards doing the velocity banking method. I have lots of money by leveraging my debt, but you do have to be very disciplined and use other peoples money (credit card companies) to make money so you are not using your own money where you have to save tons of money just to get a start. All of my credit card debt has been paid off and now I am making $15k/month take home off of real estate investments using credit card companies money so if you are disciplined in the end you are using them and making money using their money!

[@MR3DDev]

As always I agree with Dave's method of being extreme because people from this show have extreme debt, and I know there are studies in this, but this could always be applied to other things. Don't drink alcohol because that can lead to alcoholism, don't ever go to play at a casino because you can get addicted to gambling. We need to be responsible and diciplined, or you won't be able to enjoy anything.

[@waynejamel6703]

I won't do temperance with alcohol or casinos. Abstinence

[@rcarlson8203]

I run a business and we pay for our re-occurring business expenses (office 365 subscription, server hosting, etc.) using a credit card. Its a predictable, fixed amount every month that goes to running our business. I can't see a reason NOT to use a credit card that gives us 3% cash back for those types or purchases. However, for my personal finances I NEVER use a credit card.

[@aatheus]

What he was talking about doing with credit card is called a charge card. The Amex Centurion (black card) is actually a charge card. Due in full every month. You still spend more than with a debit card, due to lower friction

[@ryanelgar2299]

This dude is scared to argue his point 😂

[@SuperMarioThatWhore]

Simply put. No.

[@jillstover8782]

NO, many reasons for no cash! Bills online,da,da common sense if you take 300. For food cash no buy any food if no more cash left, pretty simple money knowledge, many people cannot even compute that?

[@OscarMartinez817]

Yes you can as long as you know how to manage your money plus you will enjoy the free rewards that come with it 😉😁

[@Mark-oc9gz]

Oscar Martinez - Stock Market Hustler that’s how I do it.

[@OscarMartinez817]

Mark same i made my mistakes when getting my first credit but now i know and only use credit cards for all purchases 😉

[@eatpigsnot]

think people think! why do you suppose the credit card companies give "free" rewards?

[@MMA-mh9uv]

Investing Hustler's alternate account?

[@costco_pizza]

Oscar Martinez rewards? Who on earth becomes a millionaire off of credit card miles and cashback? No, you need to ditch the credit cards and get yourself out of debt.

[@nycalien]

My problem with using my debit card is security. If you compromise your debit card number then they money is coming straight out of your actual bank account instead of the credit card company that has power to do more to recover the lost money. You don't have to pay the $$$ to the credit card company while they do the investigate and get their money. But with Debit account, you'll be losing your actual money from your checking account and sometimes the bank is not that helpful because it's actually your real money.

[@nycalien]

@Roy_Thousand Thank you. That's whatnot thought of too and did the exact.

[@jessecarver9176]

Who does this guy think he called? 🤦😅

[@nocalsteve]

Dave has a point about the behavior of using a credit card, but a credit card as a mechanism of payment is the safest method of payment. You get huge benefits from not actually spending your own money until you pay the bill: fraud protection, rental car protection, and benefits.

[@inaxsesable]

I prefer the warranty and dispute benefits of a credit card vs a debit card. I too pay it off in full.