Posted on 03/28/2012 7:20:25 AM PDT by Kaslin
I don’t agree with this. My brother charges everything he buys on a 2% Amex card, about $40K a year, and gets back $800 every year in cash
My expenses are much lower, but I still charge about $8K a year. I got a free TV this way.
If you have sufficient cash reserves and self-discipline, it is foolish not to do this. I only charge $500-1500 a month, and keep at least $10K in my checking account at all times.
Dave says that 75 percent of airline miles go unused. It is hard to use airline miles. You need a minimum of 25K or more for one ticket, usually much more. What good is one ticket? At one dollar per mile, you have to charge about 2000 per month to 'earn' one ticket per year. Miles expire, plus most airline credit cards have annual fees. Solution: get cash or merchant money that you know you will spend, (like Costco dollars).
Agreed. I've been using cash reward credit cards for 20+ years. Pay them off every month, no cost whatsoever.
Credit cards also have safety and security advantages over debit cards. For example, when someone steals your credit card informationas happened to me twice on two different cards last year (I never let a card out of my sight anymore)chances are the card issuer will detect and prevent fraudulent charges from going through. (Given your $50 liability limit, it's in their best interest.) BUT, if someone steals your debit card info, you're probably on your own. Good luck with that.
I’m not sure how the credit cards can make any money at all, or can manage to stay in business. Everytime I see Ramsey discussed, everyone pays their balances every month in full.
heh
I’m not sure how the credit cards can make any money at all, or can manage to stay in business. Everytime I see Ramsey discussed, everyone pays their balances every month in full.
heh
“Dave’s not here, man.”
If your debit card has the Visa logo on it, that is just not true.
ALL my normal day to day transactions are paid for with my Paypal Debit card. I get 1.5% Cash Back on every purchase. ( I am grandfathered in on that rate now I believe you can only get 1% cash back on new accounts) That adds up because it is put right back into my account so then I get 1.5% again when I use the cash back money.
I don't keep large sums in the Paypal account. But I am always transferring cash over to replenish it. Seems dumb to me NOT to take a 1.5% discount on every purchase I make.
Seriously? Transaction fees.
But, when our beloved Nanny State Congress gets around to dictating what size of fee is "fair" ...
“I dont agree with this.”
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I also don’t agree. But if someone is so financially ignorant that they have to ask Dear Dave fundamental and basic questions like these, then yes... the best answer is to cut up your credit cards.
Most people, howerver, have (or should have) sense enough to know how to manage money.
Spot on. But too many people have neither sufficient cash reserves nor self-discipline.
Personally, I use this rewards debit card which offers a minimum of 1% back on everything you buy. That's as good as or better than most credit cards.
Dave Ramsey’s great (for people who are financially retarded).
I don’t agree with Dave, either. I use credit cards that give us cash back, prefer the cash to the miles and we’ve gotten quite a bit of cash back from Discover and Chase. Yes, I do pay off the balances every month.
No most people do NOT have that snese is why Dave advises against it. If you have the good sense to do so, it is your choice to make. My father also charges everything to a crdit card and pays it off each month.
I, on the other hand, having failed in the past, do not. I have no credit cards, nor a desire to have one. Been down that road and am never going back. I now have no debt and paln to keep it that way.
Its about risk...
if you wanna risk the stumble use a credit card.
if you don’t wanna risk don’t use the credit card.
Being in debt has little to nothing to do with a credit card.
I don’t have a credit card, yet I am in debt. Having said this, I’ll admit my debt to income ratio is less than 30 percent and my home will be mortgage free in 8 months, and I’m only 53.
In other words - contrary to what Dave Ramsey preaches - being in debt is no great sin.
There’s very little risk if you have large savings and no debt. If you’ve been living way below your income for decades, there’s no way you’re going on a spending spree.
Yah... I run all of my expenditures through my Mastercard, and I pay it off every couple of weeks. I’m totally debt free.
Well, I am 50 and I have no credit card debt, no mortgage, and no car note. Sorry to say, I have rarely met anyone who pays off their credit card debt each month. Most let it ride and then add more. Been down that road myself once.
If a person can handle their debt, then it is no problem for them, but most who call Dave Ramsey have screwed up and need to be told that “you can’t spend your way out of debt”. Something the democrat party and obama don’t seem to understand either.
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