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

[yycyak]

I add up numbers in my day job, for all sorts of clients. Seen it all.

On Dave Ramsey: If you're mostly financially literate, obviously you're not going to like the guy or his methods. Easiest way to think of Ramsey is he's a self-help guy for "Addicts." I don't mean drug addicts. I mean people that can't trust themselves with debt, and especially high-interest credit card debt.

There's no "Just one drink" for an alcoholic. Same with the credit card guys. It's in their best interest to just stay away from that crap, and take the small wins vs. risking going off the rails by keeping a card around. Telling that type of personality "Well just control yourself and don't be an idiot" doesn't really work.

From a CPA standpoint, a decent chunk of Ramsey's stuff is wrong. But from a "Don't want to screw my life up" standpoint, he has a point. If you treat the material as if it were coming from an addiction counselor, it starts to make a bit of sense.

I like cash-back cards. I use them.

 

[GSPHUNTER]

People just don't give rats ass. If people would just come to this forum they could get some good ideas on how to get out of debt. Or at least realize how F*&*k up they are. How if the name of christ can US citizen be $925 billion in CC debt. What a lot of people do is run up massive debt, then either file chapter 11, or go to a financial Co. that gets their debt reduce to reasonable amounts. That way their debt gets passed on to us.

 

[fwafwow]

Nothing is as simple as anyone tries to make it, or said another way, there are always exceptions. “Cash is king”, “debt and credit cards are bad”, and “Dave Ramsey gives good advice” are all overstatements - but there may be some truth in each of them, for some folks.

Some have said it would help to have better financial literacy for our kids. I agree. Mine went to a high school that had such a required class. But the teacher was a Ramsey fan and taught only from the Ramsey text/playbook. It’s better than nothing, but not without overstatements and errors, which the teacher declined to address. I fixed that at home.

 

[TxxAgg]

My goal is to retire early and teach free personal finance classes. Lord knows kids need it.

 

[philos]

I did not read every post in this thread but here are my thoughts. A credit card is a tool nothing more nothing less. Like any tool it can hurt you if misused. Don’t be afraid to use it responsibly.

 

[Where's Bruce?]

Credit cards are like guns...used responsively they are useful...used with negligence they can ruin everything. It all depends on the hands holding em.

Alec Baldwin: Could His Killing of Halyna Hutchins Be Murder & Life Imprisonment? – Law of Self Defense

lawofselfdefense.com

 

[LostArra]

Cards that offer airline points or cash-back are not giving anyone free money. The merchants where you use the card are paying for that and reflecting it in their prices, sort of "plastic inflation". The card user is really getting some of their own money back while the all-cash dudes are paying the same sticker price to the merchant which includes the card premium but get absolutely nothing back.

Card security is a myth. Credit card and debit card numbers are out there as soon as they're printed. It's a headache to get a new card once it's hacked but I would be surprised if anyone has lost money with a credit card hack while the same cannot be said for debit cards.

 

[GSPHUNTER]

I think it can be boiled down to one thing, NOTHING IS FREE. if you get cash back, someone somewhere some how is paying for it. If you get a lot of air mile and fly for free someone somewhere is paying for it. Nothing in this life is free.

 

[CorbLand]

I take my response back. I rarely leave a tip on my card. I leave those in cash with the hope that the person that receives it doesn’t claim it on taxes.

 

[simplepeddler]

I sit on a board of directors for a non profit that works with people to overcome generational poverty. If you are able to get on this forum and offer an opinion, you are blessed indeed. Just a month ago I explained what “retirement” was to a 19 year old that has never, in his life, seen a male work in his family. NONE! NADA! We first had to get him his driver’s license just to fill out applications for a job. He never dreamed he would ever be able to have a Vehicle. So why even need the driver’s License.

It’s hard to imagine just what some people go trough.

Trust me, Dave Ramsey has bailed quite a few people out.

 

[dchilds7930]

I sit on a board of directors for a non profit that works with people to overcome generational poverty. If you are able to get on this forum and offer an opinion, you are blessed indeed. Just a month ago I explained what “retirement” was to a 19 year old that has never, in his life, seen a male work in his family. NONE! NADA! We first had to get him his driver’s license just to fill out applications for a job. He never dreamed he would ever be able to have a Vehicle. So why even need the driver’s License.

It’s hard to imagine just what some people go trough.

Trust me, Dave Ramsey has bailed quite a few people out.

Pretty wild to think of the disservice our school systems are doing by not offering or mandating basic financial planning courses.


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[simplepeddler]

Pretty wild to think of the disservice our school systems are doing by not offering or mandating basic financial planning courses.


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Totally agree!
That is why you see more and more faith based communities teaching Dave’s plan!

 

[CorbLand]

Pretty wild to think of the disservice our school systems are doing by not offering or mandating basic financial planning courses.


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Even more sad that it’s not happening at the mother/father level.

 

[MattB]

Even more sad that it’s not happening at the mother/father level.

I agree, but it also assumes the mother/father have the experience to share. As stated above, it sometimes takes outside intervention to bring that sort of knowledge to bear. Sad but true.

 

[roadrunner]

On another note, if you're happy where you live and don't see a change in status quo for lifestyle (including political leanings) and you have a stable income, do NOT pay off a mortgage early other than working at paying down the total interest paid over the life of the loan.

Paying off a mortgage ealry will hurt your credit rating, even if you don't keep CC's.

 

[Stalker69]

I use my CC like cash. If j buy online the credit card is way more convenient vs check,money order. I have never paid interest, I set the cash aside and pay off IN FULL every month.

 

[Customweld]

I sit on a board of directors for a non profit that works with people to overcome generational poverty. If you are able to get on this forum and offer an opinion, you are blessed indeed. Just a month ago I explained what “retirement” was to a 19 year old that has never, in his life, seen a male work in his family. NONE! NADA! We first had to get him his driver’s license just to fill out applications for a job. He never dreamed he would ever be able to have a Vehicle. So why even need the driver’s License.

It’s hard to imagine just what some people go trough.

Trust me, Dave Ramsey has bailed quite a few people out.

Not to sidetrack the thread but generational poverty effects are hard to address or overcome. My wife is a preschool teacher for special needs children. Almost every one of the kids come from that background and almost every one has siblings or even the parents that my wife has taught. When those kids have children, there is a good chance that they will end up in my wife's classes as well.

 

[simplepeddler]

Not to sidetrack the thread but generational poverty effects are hard to address or overcome. My wife is a preschool teacher for special needs children. Almost every one of the kids come from that background and almost every one has siblings or even the parents that my wife has taught. When those kids have children, there is a good chance that they will end up in my wife's classes as well.

Agreed. Unfortunately today, our social workers are being used to show people how to maximize the government's resources as opposed to how to use the government's resources to allow a person to not need the government's resources.

Apologies to the OP
s

 

[highside74]

We use our credit cards like cash and have enough discipline to pay them off monthly unless 0%. Not all debt is bad debt. We gain travel and rewards and have never payed interest in 20 plus years of doing it. All of our fuel, groceries plus any bills that will allow it go on credit cards.

 

[Where's Bruce?]

I think it can be boiled down to one thing, NOTHING IS FREE. if you get cash back, someone somewhere some how is paying for it. If you get a lot of air mile and fly for free someone somewhere is paying for it. Nothing in this life is free.

You are not right and you are not wrong either. Let's say you are at Bass Pro, buy a $900 tent, $1500 binos and $2K rifle and can now pay with cash, a check, a charge card, debit card or apply for a Bass Pro card and receive a 10% discount. A 2% cash back card gives you $88. A new Bass Pro card gives you $440. None of the other payment options give you anything.

The best advice when spending is...