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

[MattB]

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

The title of this thread is very clearly asking about people who are anti-debit card and anti-credit card.

 

[HuntHarder]

The title of this thread is very clearly asking about people who are anti-debit card and anti-credit card.

Try reading it again...

 

[MattB]

I have had my debit card be compromised a few times over the years. A quick call to the bank and my money was back in an hour. That is why I choose to bank where I do and am not afraid of using my debit card.

It is nice that your bank did that, but I would bet that is not in line with their written policy and know that banks are not legally required to fully reimburse consumers under certain situations.

I am not willing to base financial decisions on hoping for the best possible outcome.

 

[MattB]

Try reading it again...

That actually worked. Touché.

 

[JakeSCH]

I am anti credit card debt like many on here. Always pay off in full and offers more protection to being scammed or having money stolen.

I am not anti-debt though, because it can be a powerful tool when well thought out and used with discipline.

 

[roadrunner]

Wasn’t a conventional retirement?

You have another source to "retirement" benefits. Most people don't get that until they reach a certain age, aka, mid 60's.

You also had a way to stockpile money above and beyond what many people can.

Not all corporate jobs pay you $250,000 a year when all you need to live on is $75,000.

Someone who makes the national average in a corporate job cannot throw more than 30% into investments that have high payout/high risk.

 

[mlgc20]

I get both sides. I hate debt. I have 7 years left to pay off my house on a 10 year mortgage. And even though the rate is 2.75%, we are paying very aggressively to shorten that timeline. And once we have it paid off, that's it. I don't plan on "trading up" or anything like that. Just want to be done with that debt. However, we put a lot of purchases on credit cards and pay them off at the end of the month. I've taken my wife to Europe multiple times for free thanks to rewards programs. If you don't want to play that game, I get it. But, we enjoy the benefits.

 

[74Bronco]

Yeah I should have seen that coming.

I am a bit immune to the conversation, I'm a loan officer that deals with different philosophies every day. Customers worth $10M are more concerned about interest debt than those worth $500k sometimes. Keeps me chuckling on a weekly basis.

 

[MattB]

You have another source to "retirement" benefits. Most people don't get that until they reach a certain age, aka, mid 60's.

You also had a way to stockpile money above and beyond what many people can.

Not all corporate jobs pay you $250,000 a year when all you need to live on is $75,000.

Someone who makes the national average in a corporate job cannot throw more than 30% into investments that have high payout/high risk.

True, but a lot of that comes down to choices. We could have had a much more extravagant lifestyle which consumed a much greater portion of our take-home pay. Many of my colleagues did just that. We had a goal of retiring at 55 and knew full well we had to find a way to fund the years between when we ended working and when we could start drawing on 401-K’s and SS.

Ironically given the topic at hand, much of what we were able to do in life was made possible by the levering up to buy income-producing real estate when we’re in our 30’s.

 

[Michigander]

I was forced into a credit card a couple years ago. I couldn't even open a basic savings account at a new bank because my credit score didn't exist. Rejected multiple times trying to get a credit card to get a credit score too. I finally had to get a garbage secured card to play their little games.

I have never needed to borrow any money and have a decent chunk saved but without a credit score I would never be able to borrow money for a house even with 50% down.

I use cash when possible and only use credit/debit for online purchases. I see plenty of places where there is added fees to use a credit card, as there should be.

 

[2531usmc]

Cash. Because 100 dollars in paper form stays 100 dollars. I do use a debit card here and there. No clue about this Ramsey guy.

Not in Joe Biden’s America does 100 dollars stay 100 dollars.

In one near that 100 dollars becomes 92 dollars in Joe Biden’s 8% inflation adjusted America. And the next year becomes 83 dollars in Joe Biden’s 8% inflation adjusted America.

 

[OH_Tony]

Haven't paid a dime of CC interest in the 17 years of having them. Have never been in debt. I always carry and pay cash when it makes sense. Big jobs around the house, local stores, when someone is giving me a cash discount etc. But if CC company is going to give me "free" money in the form of rewards for buying something that I'm going to spend money on anyways and it doesn't cost me a penny more since it's paid off immediately, I'm certainly going to take advantage of it. It's simple financial responsibility and being aware of what I can afford and what I need vs what I want. I'm 35 and haven't paid a penny of interest on anything besides my home and first vehicle. CC's are good tools if you use them properly. CC debt, is a problem not a tool. I do agree with you on that.

 

[74Bronco]

I was forced into a credit card a couple years ago. I couldn't even open a basic savings account at a new bank because my credit score didn't exist. Rejected multiple times trying to get a credit card to get a credit score too. I finally had to get a garbage secured card to play their little games.

I have never needed to borrow any money and have a decent chunk saved but without a credit score I would never be able to borrow money for a house even with 50% down.

I use cash when possible and only use credit/debit for online purchases. I see plenty of places where there is added fees to use a credit card, as there should be.

I have had customers borrow $2k, put the money in a CD in the same bank, and get credit history that way. You end up with some fees, that really suck, but ~2 % over the CD rate is better than most credit card experiences. Pay a couple months, pay off early with the CD, do it again. Just playing the game.

If you have 50% down, and enough verifiable income to make the payments, hard to imagine any bank wouldn't do the loan, if you have a good relationship with them.

 

[roadrunner]

True, but a lot of that comes down to choices. We could have had a much more extravagant lifestyle which consumed a much greater portion of our take-home pay. Many of my colleagues did just that. We had a goal of retiring at 55 and knew full well we had to find a way to fund the years between when we ended working and when we could start drawing on 401-K’s and SS.

Ironically given the topic at hand, much of what we were able to do in life was made possible by the levering up to buy income-producing real estate when we’re in our 30’s.

You're retired from corporate, but not from having to have a source of income

Many can't understand that retirement doesn't mean not working or living only on tax advantaged retirement accounts in the more golden years of age.

I had that plan once as well, until a corporate SOB of a CEO screwed up for many of us where I once was...

 

[AkRyan]

I had to wait 3hrs for our local skidoo shop to get $350 cash in there till to return a cover...cash is king but unfortunately iys going away. Btw my business/Indus is 100% cash, I have to walk down a city street with upwards of 15k at times to pay my state taxes and since it's "drug" money I am not allowed to carry a firearm to protect myself.....I wish I had options at times.

 

[jzeblaz]

I saw a post about the "best credit cards", credit cards make me want to vomit so I thought I would make a thread seeing who else has an aversion to debt and specifically credit cards?

Edited to add I have a debit card because many of you think I meant actual cash all the time. I’m not a total caveman.

Do not comment about your credit card rewards, debt arbitrage, or whatever. This is for my cash slinging friends only.




Oh and yes, I am a pretty big Dave Ramsey fan.

 

[ChrisS]

You're retired from corporate, but not from having to have a source of income

That's my goal. Just took advantage of the shift in labor power and took a job with a new firm. A heckuva lot more money. Hopefully, I can get it done before 59 1/2, but that's cool too. I'll definitely be working after I "retire," but it will be more on my terms, probably building custom furniture and selling what I can to pay the basics.

As far as the rest of the thread:

Debt is a tool and there isn't wealthy person alive who doesn't take advantage of it. For me, everything is paid off except the mortgage which is less than 2.5% interest, I'd rather sock the extra money into ETFs. I get the attractiveness of Dave Ramsey, but he's a bit cultish with his books and tools and courses. You too can be a representative of Ramsey Solutions to peddle his books. No thanks.

My philosophy is that as long as the interest is less than inflation - it's free money to me. Like others have said, credit and credit cards are a powerful tool which require respect, not fear. And the comparison to guns is pretty accurate, credit cards don't create debt just like guns don't create murders, but both make it a helluva lot easier.

But you do you. Except if you want to buy my book and enroll in a course. Only $29/month recurring. Just sign up with your credit card.

 

[rayporter]

been dept free since 1991 and have never carried CC debit.

used to have an aversion to even carrying a CC.

but times have changed. many motels force you to have one and i can avoid carrying large sums of cash. they are a necessary evil now days.

 

[LostArra]

Who of you cash kings paid for their first home fully in cash?

El Chapo?

There would be a lot of people better off if financial literacy was actually taught in public schools. I not going to let my kids learn it all on the fly like I had to.

You really might want to think this through. You would like the most fiscally irresponsible group of people in the country (the government) to teach your children how to be fiscally responsible in their government schools? I don't know you but I do know you will do a much better job than the government.

 

[Grassymike]

Bit of a different perspective here. I think differently on debt as a small business owner. I grew my business with a series of small loans that were achievable at the time payment wise. My philosophy is never to pay with a loan or credit on anything that does not appreciate in value or earn me more money .I have grown to the point in my business now I pay directly for most things. I have two credit cards with very low limits that get used sparingly. The comments on Dave Ramsey on this thread are interesting . One thing hard to argue with is he provides a very solid roadmap to get to financial freedom whether you like the way he explains or not. I think it is important to remember he is helping people who are not financially disciplined and need his help to get there.