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

[summs]

Didnt get to read all the posts, but your missing out on free money / airline miles. You are going to spend the money anyway, don't spend what you cant afford and pay it off every month. Some cards have like 5% cash back, you're on rokslide, you probably drive to hunt and fish, cash back for gas, costco card cash back for groceries etc... literally free money for things you are already buying.

If your debit card goes bad, good luck fighting for your money back. If the credit card goes bad, the bank fights for their money back.

 

[FLATHEAD]

Cash and Debit card.
I have one credit card I havent used in quite a while.

 

[Boarmaster]

I have a credit card and several debit cards. I use my credit card for purchases but never carry a balance forward from one month to another. It has a small limit $1600. I sometimes pay it off mid month if
i am running up the balance. I try to never get over 30/50 percent of my available. I do not carry debt of any kind other than a small truck loan and mortgage. I only use enough debt to maintain a good credit rating should I need to use it for an opportunity. Other than my house I don't buy it if
i cant pay for it or pay it off at anytime. Budgeting is very important if you want to have things and not have debt. Forecasting cash requirements is necessary. I know every 5 years I need to come up with a large amount to trade trucks. I budget that along with my current small truck payment so the money is there when I need it.
I know how much need each year for hunting and rec so I budget that in so that
its there.
I would like a new side by side so I am going to drive my current vehicle a few more years after I pay off the loan in July. This allow me to buy the side by side in a couple years as well as my new truck.
I have certainly made mistakes in the past with finances but I learned from those. I don't do anything on a whim anymore.

 

[hunt1up]

I got on the Ramsey wagon a few years ago. At the time we had two car payments, a camper payment, and a reasonable 15-year mortgage. My wife and I both have good stable jobs so those payments were never a hardship really. But every month when I'd pay each of those loans I'd get pissed. Fast forward 4-5 years and all those debts are gone. We have a very reasonble land mortgage left but that's it. Could I have invested or leveraged this or that to maximize profits instead? Yeah maybe. In hindsight I wouldn't change my decisions though. It has been fantastic and we put plenty of money into investments and things now.

As for credit cards, we reluctantly use them. Mostly for online purchases. I went debit only for some time and had my card number stolen. I think a few grand was taken from my bank account. Yes I got it back and the protection was similar to a stolen credit card, but when that money is taken it is YOUR money that's gone. With a credit card at least the thief is taking bank money. I think I had my money restored to my bank account in 8-10 days but it was a decent inconvenience.

As for rewards, I take them as they come. It's certainly nice to get a "free" flight or something here and there. People act like it's the greatest thing though. So you have to spend $100,000 to get back $1000-2000? Big whoop. Credit card companies don't give cash back out of the kindness of their hearts, but rather they know people will subconsciously spend more when rewards are available. So you spend more to get more back. It's a trivial perk that doesn't translate to actual wealth building in the long run.

 

[Tail_Hunter]

Rewards, new account bonuses, 0% APR and an interest free loan on purchases for a few weeks is too much for me to pass up to avoid credit card companies.

 

[Bachto]

One of the massive misconceptions that the older generation or those that don't know is those who use credit cards to the extinct of churning don't carry any balance and pay off before the statement date.

There's two dates, statement date and due date.

Then there's debt, debt is good. Making money via debt is how America operates. Good debt vs bad debt.

Lol dude I’m 28.

All you guys can play the credit card reward points game. You do you, but you will never convince me your credit card points are worth it. Period.

 

[Bachto]

I was Dave-ish for the longest time. I had a credit card with good rewards that I paid off every month.

I finally cut them up after being reminded where those rewards dollars were coming from.
-Single mom's who hold a balance on their CC, etc.
-Companies that borrow money to deforest the Amazon or rape the earth in some other fashion, etc.

You may pay off your card every day, but your free money is hurting people and places. You may not personally be enslaved to debt, but you are continuing the normalization of a system that devours people.

This is a huge part for me as well.

The credit card companies are a the casino. The odds are in their favor. They know that the more you use your card the higher chance you will carry a balance. Hence the rewards. They are literally betting that you will at some time pay interest.

I choose to just eliminate that all together.

 

[Reburn]

Lol dude I’m 28.

All you guys can play the credit card reward points game. You do you, but you will never convince me your credit card points are worth it. Period.

I flew round trip first class to south africa, iceland and argentina in the last 5 years on CC points.
For me it was worth it.
To date my company and myself havent paid anything to the cc company except what we spent and the yearly $500 membership fees.

 

[Kurts86]

How do people using only cash:

1) Book a hotel in advance (or at all?)
2) Book a flight
3) Apply for out of state tags

 

[Bachto]

How do people using only cash:

1) Book a hotel in advance (or at all?)
2) Book a flight
3) Apply for out of state tags

DEBIT CARDS.

I didn’t mean actual cash all the time, geez

 

[roadrunner]

My corporate job paid me just enough for me to allow me to retire at 51.

You're one of the exceptions and it wasn't a conventional retirement either.

Most corporate jobs don't do that...

 

[Reburn]

This is a huge part for me as well.

The credit card companies are a the casino. The odds are in their favor. They know that the more you use your card the higher chance you will carry a balance. Hence the rewards. They are literally betting that you will at some time pay interest.

I choose to just eliminate that all together.

@Nick992

Guys,
I had left this comment alone. but since you quoted it.
Its not right.

Debt is neither good nor bad.

Credit card companies make money on the transactions. They charge the vendor a percentage for using the credit card. While the consumer carried debt is a profit center its not their main profit center by a large chunk. It would be ok with all the credit card companies if everyone paid their bill every month as they are still making 1.5-5% on all transactions. Fact is if they have to carry a balance that money they are carrying is worth prime rate + whatever profit they determine.

Would yall rather that single mom not have the means via credit and some interest to buy her babies medicine that it needs to survive.

Compaies deforesting the amazon dont take loans from credit card companies. They take loans from banks. the bank may have a credit card arm. Dont get those confused.

 

[johnw]

I dont understand how this is even up for debate.

If you can't afford something with cash or cash equivalent, you shouldn't be putting it on a credit card and letting the balance ride.

Lenders want extend credit to people that don't need it and have the means to pay it back.

Having a credit card absolutely can help improve your credit score. You may not need a credit score if you are buying everything cash (including house/car/etc), but having access to the credit if you need it is always a good thing, and it will be at better rates/terms if you have better credit.

Credit card rewards are definitely a perk, but if you dont have the discipline to pay off your credit card every month (or more frequently), or not buy something you cannot buy with cash/cash equivalent, then you shouldn't have it. Nothing is worse than paying 20+% APR for a non-essential.

 

[Poser]

I had an older friend who died last year. He got out of the late 70s/early 80s cocaine trafficking business clean. He did become a contractor and did well, but he had a literal mountain of cash and paid everything he could with it. He used a local insurance guy for his insurance and went by and paid his premiums in cash. Big time tipper. He was mostly trying to use his money. He had safes in and under his house. I saw at least one of them. As his health was going downhill and he was on the death clock, he lamented several times that he still had more cash then he could spend.

Side note: I was a tiny bit surprised I didn’t end up in his will with a suitcase from his estate. As far as I know, I was one of 2-3 people that knew about his loot. He didn’t want his daughter, who would have inherited his estate, to know about his past, so not sure how a mountain of cash was explained unless he laundered it at the end.

He had some crazy stories that I wasn’t entirely sure I believed, but some stories from that era have been picked up in recent years in the news and podcasts and, from what I’ve read, totally validates the stories he was telling me back in the 90s.

Anyway, no credit card debt, but use credit cards. Lived in Nashville for about 10 years and never heard a good thing about working for Dave Ramsey’s company.

 

[Poser]

I had an older friend who died last year. He got out of the late 70s/early 80s cocaine trafficking business clean. He did become a contractor and did well, but he had a literal mountain of cash and paid everything he could with it. He used a local insurance guy for his insurance and went by and paid his premiums in cash. Big time tipper. He was mostly trying to use his money. He had safes in and under his house. I saw at least one of them. As his health was going downhill and he was on the death clock, he lamented several times that he still had more cash then he could spend.

Side note: I was a tiny bit surprised I didn’t end up in his will with a suitcase from his estate. As far as I know, I was one of 2-3 people that knew about his loot. He didn’t want his daughter, who would have inherited his estate, to know about his past, so not sure how a mountain of cash was explained unless he laundered it at the end.

He had some crazy stories that I wasn’t entirely sure I believed, but some stories from that era have been picked up in recent years in the news and podcasts and, from what I’ve read, totally validates the stories he was telling me back in the 90s.

Anyway, no credit card debt, but use credit cards. Lived in Nashville for about 10 years and never heard a good thing about working for Dave Ramsey’s company.

 

[Poser]

I had an older friend who died last year. He got out of the late 70s/early 80s cocaine trafficking business clean. He did become a contractor and did well, but he had a literal mountain of cash and paid everything he could with it. He used a local insurance guy for his insurance and went by and paid his premiums in cash. Big time tipper. He was mostly trying to use his money. He had safes in and under his house. I saw at least one of them. As his health was going downhill and he was on the death clock, he lamented several times that he still had more cash then he could spend.

Side note: I was a tiny bit surprised I didn’t end up in his will with a suitcase from his estate. As far as I know, I was one of 2-3 people that knew about his loot. He didn’t want his daughter, who would have inherited his estate, to know about his past, so not sure how a mountain of cash was explained unless he laundered it at the end.

He had some crazy stories that I wasn’t entirely sure I believed, but some stories from that era have been picked up in recent years in the news and podcasts and, from what I’ve read, totally validates the stories he was telling me back in the 90s.

Anyway, no credit card debt, but use credit cards. Lived in Nashville for about 10 years and never heard a good thing about working for Dave Ramsey’s company.

 

[Poser]

I had an older friend who died last year. He got out of the late 70s/early 80s cocaine trafficking business clean. He did become a contractor and did well, but he had a literal mountain of cash and paid everything he could with it. He used a local insurance guy for his insurance and went by and paid his premiums in cash. Big time tipper. He was mostly trying to use his money. He had safes in and under his house. I saw at least one of them. As his health was going downhill and he was on the death clock, he lamented several times that he still had more cash then he could spend.

Side note: I was a tiny bit surprised I didn’t end up in his will with a suitcase from his estate. As far as I know, I was one of 2-3 people that knew about his loot. He didn’t want his daughter, who would have inherited his estate, to know about his past, so not sure how a mountain of cash was explained unless he laundered it at the end.

He had some crazy stories that I wasn’t entirely sure I believed, but some stories from that era have been picked up in recent years in the news and podcasts and, from what I’ve read, totally validates the stories he was telling me back in the 90s.

Anyway, no credit card debt, but use credit cards. Lived in Nashville for about 10 years and never heard a good thing about working for Dave Ramsey’s company.

 

[Kurts86]

DEBIT CARDS.

I didn’t mean actual cash all the time, geez

The tread title specifies both anti credit card and debit card.

 

[S.Clancy]

CC require discipline. If you have discipline, no problem. If you don't, I can see not having one.

The fact is, if you have the financial discipline, CC produce a small % of return, are accepted everywhere, if you lose them you don't lose the $$$, if someone steals them you don't lose the $$$, and CC companies fight pretty hard for you when business refuses to play nicely.

I WILL NOT use a debit card, they have none of the positves of CC and have the negative of financial theft when the store or wherever you purchased something gets hacked and information stolen.

 

[Bachto]

The tread title specifies both anti credit card and debit card.

No. It says anti-debt. Not anti debit. They are not the same thing.