Comments on: Forget Dave Ramsey, 5 Ways I’ve Used Credit Cards to Better My Financial Health http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/ Personal Finance Blog for Young Professionals Wed, 23 May 2012 01:29:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Jay http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-29497 Jay Wed, 28 Dec 2011 17:20:41 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-29497 You say he's just trying to help. I think most of us commenters are thinking if you want to help people in financial trouble why not go help people in financial trouble rather than taking jabs at someone that IS helping people in financial trouble. I probably owe my marriage to D.R.'s advice. I'm not an irresponsible person, but I did get my financial habits from my parents who were irresponsible financially. I'm not saying that every human lacks the ability to control his/her self with a credit card. I'm saying look at the average U.S. financial statistics and you'll realize that the majority of people DON'T control themselves. D.R. is hitting a larger number of targets by targeting out of control spenders than he would if he went after the tiny fraction of people who use their plastic wisely. But if you're really into rewards you should check out perkstreet online banking. I got back $800 cash this year. You say he’s just trying to help. I think most of us commenters are thinking if you want to help people in financial trouble why not go help people in financial trouble rather than taking jabs at someone that IS helping people in financial trouble.

I probably owe my marriage to D.R.’s advice. I’m not an irresponsible person, but I did get my financial habits from my parents who were irresponsible financially. I’m not saying that every human lacks the ability to control his/her self with a credit card. I’m saying look at the average U.S. financial statistics and you’ll realize that the majority of people DON’T control themselves.

D.R. is hitting a larger number of targets by targeting out of control spenders than he would if he went after the tiny fraction of people who use their plastic wisely.

But if you’re really into rewards you should check out perkstreet online banking. I got back $800 cash this year.

]]> By: ERHR http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-25515 ERHR Wed, 05 Oct 2011 18:32:28 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-25515 It looks like you got beat up a bit in the comments here, G.E.! But it's an aggressive post title so I guess that was expected. For what it's worth, I largely agree with you. I read Total Money Makeover and didn't find it very helpful (and actually laughable in places), especially as someone without any consumer debt! Post-college, I didn't know yet if I could trust myself with credit so I had one credit card that I never touched and used debit for everything. After three years I believed that I had sufficiently trained myself to never spend money I didn't have, so I switched to using a good cash rewards credit card. 1.5 years out and I have used my credit card perfectly (I actually pay it off several times per month to keep the balance low) and have enjoyed shifting my occasional redeemed rewards to my "Travel" savings account. I'm not sure about this argument that millionaires don't worry about getting a few percent back in rewards. I don't know any millionaires personally, but from reading The Millionaire Next Door I definitely got the impression that real millionaires are frugal. To me, using a rewards credit card (as long as you never carry a balance or are charged any fees) is part of being frugal. I can definitely see that someone else would consider using cash frugal if they know that they can't be trusted with credit cards. While I believe that people will spend a bit more on average if they use plastic instead of cash, I also know that there can be anecdotal exceptions. In our budget, the majority of our spending is for fixed expenses and we have caps on spending in every discretionary category. I am so strict with my spending that I really don't believe using cash would make a difference. I agree with Dave that for many people credit cards can be damaging and that if you are in consumer debt the best thing you can do is switch to cash or at least debit. I also agree with you and many posters that some people in some stages of life can use credit cards to their advantage and not get "bitten." I have demonstrated that principle and will continue to practice it - but you better believe if I ever see myself slipping into revolving debt that I will cut myself off from my cards, rewards or no. It looks like you got beat up a bit in the comments here, G.E.! But it’s an aggressive post title so I guess that was expected. For what it’s worth, I largely agree with you. I read Total Money Makeover and didn’t find it very helpful (and actually laughable in places), especially as someone without any consumer debt!

Post-college, I didn’t know yet if I could trust myself with credit so I had one credit card that I never touched and used debit for everything. After three years I believed that I had sufficiently trained myself to never spend money I didn’t have, so I switched to using a good cash rewards credit card. 1.5 years out and I have used my credit card perfectly (I actually pay it off several times per month to keep the balance low) and have enjoyed shifting my occasional redeemed rewards to my “Travel” savings account.

I’m not sure about this argument that millionaires don’t worry about getting a few percent back in rewards. I don’t know any millionaires personally, but from reading The Millionaire Next Door I definitely got the impression that real millionaires are frugal. To me, using a rewards credit card (as long as you never carry a balance or are charged any fees) is part of being frugal. I can definitely see that someone else would consider using cash frugal if they know that they can’t be trusted with credit cards.

While I believe that people will spend a bit more on average if they use plastic instead of cash, I also know that there can be anecdotal exceptions. In our budget, the majority of our spending is for fixed expenses and we have caps on spending in every discretionary category. I am so strict with my spending that I really don’t believe using cash would make a difference.

I agree with Dave that for many people credit cards can be damaging and that if you are in consumer debt the best thing you can do is switch to cash or at least debit. I also agree with you and many posters that some people in some stages of life can use credit cards to their advantage and not get “bitten.” I have demonstrated that principle and will continue to practice it – but you better believe if I ever see myself slipping into revolving debt that I will cut myself off from my cards, rewards or no.

]]> By: Danny http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-24968 Danny Fri, 23 Sep 2011 22:59:40 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-24968 Dave Ramsey's advice saved my marriage and took us from six figure debt to seven figure wealth. His advice is solid and seeing that he's a millionaire, I'll stick with what he says. Argue all you want, but you realize that 2% of the average household's expenses is only going to be about $600 right? Thankful for my lack of a credit score, D. Dave Ramsey’s advice saved my marriage and took us from six figure debt to seven figure wealth. His advice is solid and seeing that he’s a millionaire, I’ll stick with what he says.

Argue all you want, but you realize that 2% of the average household’s expenses is only going to be about $600 right?

Thankful for my lack of a credit score,

D.

]]> By: Bob http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-22681 Bob Thu, 21 Jul 2011 22:35:51 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-22681 Borrowing someone else's money is ALWAYS a recipe for disaster. It amazes me how many people don't get this. Debt is financial slavery. Plain and simple. And credit card company's wouldn't make any money if the majority of their customers never carried a balance. They make money based on people's irresponsibility with money!! There are a few out there who do a fine job of paying off their debt every month. Good for them. But I will never borrow someone else's dime ever again. Credit is a scam. Ever since I have followed Dave Ramsey's plan, I have gotten out of debt, I got money in the bank, my equity has gone up ten fold, and my stress level is much lower knowing that I don't borrow money. I work hard and pay for everything outright. It's a good feeling knowing that I don't ever have to concern myself with borrowing someone else's money. Plus, Perkstreet offers 2% cash back on all purchases with your debit card. I'm on track for about $600 cash back this year and I don't need to borrow anyone's money to do that! Borrowing someone else’s money is ALWAYS a recipe for disaster. It amazes me how many people don’t get this. Debt is financial slavery. Plain and simple. And credit card company’s wouldn’t make any money if the majority of their customers never carried a balance. They make money based on people’s irresponsibility with money!!

There are a few out there who do a fine job of paying off their debt every month. Good for them. But I will never borrow someone else’s dime ever again. Credit is a scam. Ever since I have followed Dave Ramsey’s plan, I have gotten out of debt, I got money in the bank, my equity has gone up ten fold, and my stress level is much lower knowing that I don’t borrow money. I work hard and pay for everything outright. It’s a good feeling knowing that I don’t ever have to concern myself with borrowing someone else’s money.

Plus, Perkstreet offers 2% cash back on all purchases with your debit card. I’m on track for about $600 cash back this year and I don’t need to borrow anyone’s money to do that!

]]> By: Idaho for Sale http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-20949 Idaho for Sale Mon, 23 May 2011 23:32:58 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-20949 Man...Dave Ramsey has you all brainwashed. If you have no self-control, by all means follow his advice to a fault. Just enjoy paying more for auto insurance and many other non-debt related items because you have a poor credit score. It's not just about borrowing money, it's about how you manage your finances as an adult. Not to mention all of the "hang around with millionaires" comments....why not talk to a billionaire about how to use credit? Don't know any? Start with Trump. Man…Dave Ramsey has you all brainwashed.

If you have no self-control, by all means follow his advice to a fault. Just enjoy paying more for auto insurance and many other non-debt related items because you have a poor credit score.

It’s not just about borrowing money, it’s about how you manage your finances as an adult. Not to mention all of the “hang around with millionaires” comments….why not talk to a billionaire about how to use credit? Don’t know any? Start with Trump.

]]> By: Lida http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-20037 Lida Tue, 05 Apr 2011 16:10:56 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-20037 I see that you have a lot of haters, but I definitely support what you're saying. I'm taking the Dave Ramsey class right now, and I do think there is merit to it, but it's more for people with no control... which just happens to be most people. If you spend money like crazy, then his mindset works well, so most people think he's God, or close to it. Anyway, I treat my credit card as if it were a debit card, and thus, I get rewards for things I was going to buy anyway, and had the money to buy anyway. This is exactly what you're saying, and I'm not sure why people are offended... You're actually trying to help. (Plus, you're right.) But hey, if they don't want your help, it's their loss. On the flip side, there are people out there who are taking your points into account, and so I thank you for your input! I see that you have a lot of haters, but I definitely support what you’re saying. I’m taking the Dave Ramsey class right now, and I do think there is merit to it, but it’s more for people with no control… which just happens to be most people. If you spend money like crazy, then his mindset works well, so most people think he’s God, or close to it.
Anyway, I treat my credit card as if it were a debit card, and thus, I get rewards for things I was going to buy anyway, and had the money to buy anyway. This is exactly what you’re saying, and I’m not sure why people are offended… You’re actually trying to help. (Plus, you’re right.) But hey, if they don’t want your help, it’s their loss. On the flip side, there are people out there who are taking your points into account, and so I thank you for your input!

]]> By: Dan http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-19496 Dan Sat, 12 Mar 2011 23:48:40 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-19496 P.S. In his book whose cover you show a picture of, he makes a comment on the security of using a debit card. He asserts that Visa has made it very similar to dispute a debit card transaction as compared to their credit cards. P.S. In his book whose cover you show a picture of, he makes a comment on the security of using a debit card. He asserts that Visa has made it very similar to dispute a debit card transaction as compared to their credit cards.

]]> By: Dan http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-19495 Dan Sat, 12 Mar 2011 23:46:46 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-19495 point 2 and 3- Dave doesn't worry about the credit score because he wants to keep people out of debt, so these points seem not to stick as arguments against his method. point 4- Dave links to a 2% cashback debit card on his website, which is higher than the 1-1.5% example given in your article. point 5- Dave believes that even if you're using others' money, you will spend more with plastic than with cash. So even if you're just paying for the essentials, the temptation to overspend on them and on other things are there. Sensible sounding advice in your article, but I like the experience driven method of Ramsey. My $.02, thanks for the food for thought point 2 and 3- Dave doesn’t worry about the credit score because he wants to keep people out of debt, so these points seem not to stick as arguments against his method.

point 4- Dave links to a 2% cashback debit card on his website, which is higher than the 1-1.5% example given in your article.

point 5- Dave believes that even if you’re using others’ money, you will spend more with plastic than with cash. So even if you’re just paying for the essentials, the temptation to overspend on them and on other things are there.

Sensible sounding advice in your article, but I like the experience driven method of Ramsey. My $.02, thanks for the food for thought

]]> By: Mark http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-2/#comment-19144 Mark Thu, 03 Mar 2011 23:34:08 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-19144 I just heard Dave on the radio the other day counsel a woman to cut up her cards despite the fact that it will hurt her credit score. Who cares about a credit score? A few months ago I purchased internet for my house and they had to do a credit check. Because I don't have any credit I couldn't do payments on my equipment. Seriously I didn't care that I had to pay $100 for the equipment, I planned on paying in full anyway. The bank I use doesn't even consider your credit score for home loans so why do I need a credit score? I have never had a credit score so from what I have observed from family, friends, and late night television is that it is something you need to try and convince yourself that you are not an idiot for going into so much debt. Look at me guys, I will make payments for the rest of my life to someone else for stuff I can't remember, but look I have a high credit score! O man I could go on and on :) I just heard Dave on the radio the other day counsel a woman to cut up her cards despite the fact that it will hurt her credit score. Who cares about a credit score? A few months ago I purchased internet for my house and they had to do a credit check. Because I don’t have any credit I couldn’t do payments on my equipment. Seriously I didn’t care that I had to pay $100 for the equipment, I planned on paying in full anyway. The bank I use doesn’t even consider your credit score for home loans so why do I need a credit score? I have never had a credit score so from what I have observed from family, friends, and late night television is that it is something you need to try and convince yourself that you are not an idiot for going into so much debt. Look at me guys, I will make payments for the rest of my life to someone else for stuff I can’t remember, but look I have a high credit score!

O man I could go on and on :)

]]> By: Mark http://20somethingfinance.com/forget-dave-ramsey-5-ways-ive-used-credit-cards-to-better-my-financial-health/comment-page-1/#comment-19143 Mark Thu, 03 Mar 2011 23:23:08 +0000 http://20somethingfinance.com/blog/2008/01/04/credit/#comment-19143 Weak sauce bro, there are debit cards that give you 2% back on your purchases. I think it is great that you already agree with everything paul has said because he is right... its ok you don't have to keep defending credit cards, we all know that you don't really believe in them :) Weak sauce bro, there are debit cards that give you 2% back on your purchases. I think it is great that you already agree with everything paul has said because he is right… its ok you don’t have to keep defending credit cards, we all know that you don’t really believe in them :)

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