Where are my anti-debt/credit card people at?

[MattB]

I agree but with car dealerships I’ve had little leverage with cash. They want to finance and make the interest and it shows in how little the 3-4 places I’ve worked with cared that I could pay cash.

Yup, they make money on the mark-up on the new vehicle, on the trade in, and the financing. Paying cash just takes away one of their three opportunities to profit.

Want to really piss them off? Intimate you will trade your current car in and finance your new car through them and get a price. Then sell the old car yourself and pay cash.

 

[MattB]

Credit cards are only debt if you don't pay them off, and not using credit cards is paying more money on every purchase.

Credit cards are only free debt if pay them off. The minute you make a charge on a credit card you are in debt to the issuer until you pay it off.

 

[Dgregory]

But you don’t have to pay interest if you pay it off by the end of the next month. Make a purchase March 1st. Payment isn’t due until the end of April. Maybe that’s now how every CC is but I’ve got an Amex and a MasterCard and both are the same way. If you pay by the due date you’re not assessed any interest.


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[Happy Antelope]

Only reason you need a credit score is to take on more debt lol

No, I use that credit card to gain wealth

Credit cards are only free debt if pay them off. The minute you make a charge on a credit card you are in debt to the issuer until you pay it off.

Nope, its only a charge card at that point, same reason an American Express is not a credit card it's a charge card. You can get a 2% cashback card and save 2% on every purchase, pay off with no interest hence no credit was issued. If you want pay the card 15 seconds after you use it. I get what you are saying, but if you don't use a point card or cash back card you are in essence paying more for everything single item you buy. This is why use a point card for everything. If I bought that Emirates first class ticket would have been about 10K one way, I used points and it was basically free. By using card points right one has the ability to literally change their entire life. Yes I agree it take discipline for sure, but I have taken maybe 500k in free flights over the last 15 years. Anyone can do it. Returns can be upwards of 15% if done right. I have helped so many people travel the world for free on points, anyone asks I help.

 

[MattB]

Nope, its only a charge card at that point, same reason an American Express is not a credit card it's a charge card. You can get a 2% cashback card and save 2% on every purchase, pay off with no interest hence no credit was issued.

That isn't true. The differences between a "charge card" an a "credit card" has no bearing on whether a charge represents indebtedness. But then again, I only worked in the banking industry for 25 years so what would I know?

 

[Happy Antelope]

That isn't true. The differences between a "charge card" an a "credit card" has no bearing on whether a charge represents indebtedness. But then again, I only worked in the banking industry for 25 years so what would I know?

Fair enough.

 

[cuerro viejo]

apparently you should only have a credit card if you are an accredited investor, other wise you don't understand stand healthy leverage or dont have the discipline to get there. Interesting takes on anti CC.

there are alot of things linked to a credit score, Particularly insurance premiums, which may not mean much if you don’t reside in a high premium area to begin with, or don’t have high value assets.

Ramsey has made millions selling books that are fronted on operating credit by a publishing house. Kind of ironic when you think about it.

Anti- CC card needs to be a lifestyle for some, others who are disciplined can show the value pretty easy.

 

[hunt1up]

55% of Americans carry a CC balance from month to month. It's crazy that in the Rokslide population it appears to be 0%! Talk about crazy odds.

Jaw-Dropping Stats About the State of Debt in America

Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt...

www.yahoo.com

 

[GSPHUNTER]

55% of Americans carry a CC balance from month to month. It's crazy that in the Rokslide population it appears to be 0%! Talk about crazy odds.

Jaw-Dropping Stats About the State of Debt in America

Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt...

www.yahoo.com

Funny how that works.

 

[Leaf Litter]

Just got a free scope from my Cabelas card points. Balance is paid in full every month so I haven't given them a dime of interest. Anybody opposed to CCs is just too unreliable/dense to use them correctly.

 

[cuerro viejo]

55% of Americans carry a CC balance from month to month. It's crazy that in the Rokslide population it appears to be 0%! Talk about crazy odds.

Jaw-Dropping Stats About the State of Debt in America

Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt...

www.yahoo.com

RS has a very high population of trades and advanced education, and or expensive hobbies that require a steady savings approach.

To give context to your posted percentage the US median net worth is 121k, and a “house hold” median yearly income of 67K+-


https://www.usatoday.com/story/mone...ns-100-k-net-worth-still-struggle/2674474001/

“About 46% of U.S. adults with a net worth of at least $100,000 are more likely to have credit card debt, compared with 40% of those who have a negative net worth, according to a new Bankrate survey. Surprisingly, 57% of those with a net worth between $100,000 and $199,999 are the most likely to carry credit card debt versus 42% of all Americans”

 

[CorbLand]

55% of Americans carry a CC balance from month to month. It's crazy that in the Rokslide population it appears to be 0%! Talk about crazy odds.

Jaw-Dropping Stats About the State of Debt in America

Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt...

www.yahoo.com

Rokslide is a very small subset of an already small subset of the population. I wouldn’t come here looking for an accurate representation of the population as a whole.

 

[Grassymike]

This has been a very interesting thread. I think no matter how you operate (with/without credit cards) there is no single "Right" way. What works well for me may be exactly opposite of others. My experience with my very first credit card taught me to be very careful with them. I have sadly repeated that lesson. I started my own business from scratch and consistent cash flow took years to develop . This coupled with credit cards and overly high credit limits was a recipe for trouble. needless to say balances were not paid in full every month. I needed an emergency fund but all excess went to pay off balances. Once things were paid another need came up. Rinse and repeat. I live in a far different state now. However I tend to remember well and as such limit exposure to credit .

 

[GringoBling]

Anyone who doesn't leverage credit cards in their favor via floating interest, cash back, rewards, etc. doesn't understand personal finance.

 

[Grassymike]

Ok.

 

[hunt1up]

Rokslide is a very small subset of an already small subset of the population. I wouldn’t come here looking for an accurate representation of the population as a whole.

I'm not trying to glean too much from it, just being sarcastic. Everyone seems to be so good with money, yet 55% of the population carries credit card debt and 60-70% of the population lives paycheck to paycheck. But hey, credit card points! (As mentioned prior, I use credit cards and do get points)

 

[sasquatch]

There is one huge difference in buying a house in Canada with a mortgage vs. buying one in the U.S. with a mortgage. In Canada we do not get to write off the interest paid on mortgages for personal homes on our taxes. Because of this paying off a mortgage quicker is more of a priority in my financial planning. If we sell our primary residence the proceeds (equity gained) is tax free. How would selling your primary residence work in the U.S. tax wise ?

250k of gains is tax exempt

500k if married


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[Z71&Gun]

Forgive me for the post, I know this is not what you’re after. Im aware of Dave Ramsey and have heard great things about his program and getting families out of debt.

I have credit cards, both for my business and personal. I treat it like a debit card in that I pay them off every month. In doing so were able to collext a lot of points to pay for a lot of flights and vacations.

i never understood the reasoning for paying cash. Other than the fear of not paying off and then ending up in substantial debt?

All about them miles! Also, that's how you get an 800 credit score to finance real property.

 

[Stache Attack]

Great thread, I’ve been a cash guy until now that I’m 28, really thinking I’m missing out by not using a credit card. I’m good at paying off stuff, have over 50% of my house paid off. Just gotta figure out if I’m going to go miles or cash back. Glad some of you agree you can be debt free and still have cards

 

[Paulyester]

If you’re paying in cash, you’re paying for someone else’s rewards. The cost of reward card processing is built into retail pricing.