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The risk he is talking about isn't from online shopping/fraudulent charges. The risk is spending money that's not actually your money and then being in a situation where you can't pay it back or have to pay way more than the original purchase price because of interest. It's enslaving yourself. I think that's smarter than Suze Orman's take on things.
Yea and if you read my whole diatribe you would understand that is what I was talking about. If you already have the cash in your savings account why not earn rewards as you shop for normal everyday things? I get that most of Dave's followers are irresponsible in that regard.
Yea and if you read my whole diatribe you would understand that is what I was talking about. If you already have the cash in your savings account why not earn rewards as you shop for normal everyday things? I get that most of Dave's followers are irresponsible in that regard.
Are you really earning so many rewards that you choose not to pay with cash that you already have?? Not worth the effort.
Are you really earning so many rewards that you choose not to pay with cash that you already have?? Not worth the effort.
Doesn't take much effort. You're swiping a card instead of paying cash. At least when you lose your card or it gets stolen you can call and cancel and no money lost. You lose cash, and you're SOL.
Are you really earning so many rewards that you choose not to pay with cash that you already have?? Not worth the effort.
I don't have a big income nor am I a big spender, but this quarter I get back 5% on online purchases. Some quarters it's 5% on gas or groceries with 1% back on everything. It's not a ton, but it's usually $10-$20 a month for no effort.
Location: Chapel Hill, NC, formerly NoVA and Phila
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I get 5% on all gas purchases using my credit card. I don't buy any more gas than I would with cash. Each month we get back about $15-$20 for about a $200 savings per year. I just got a Fidelity Amex Card, which will give me 2% back on all of my other purchases besides gas. That money will go into my Fidelity account to be invested. We put groceries, our cable bill, restaurants, and hotels on our credit card. We spend about $1500-$2000 per month on our credit card not including our gasoline. This should give me another $400 or so per year to invest. So I get an extra $600 per year for swiping my card, in addition to loss protection, insurance, and a good record of my expenses. And yes, I have the cash to pay for all of it, but I prefer to take advantage of their great offers.
Are you really earning so many rewards that you choose not to pay with cash that you already have?? Not worth the effort.
I don't see what effort it is not worth? Paying with a card is much easier/more convenient than carrying out and paying with cash to me and I make a few hundred + a free hotel room in rewards in an average year specifically from my credit card usage. Plus, I get free extended warranties and other consumer protection just for using these cards.
I only use it to buy stuff I would buy anyway and I pay my balance in full every month.
The risk he is talking about isn't from online shopping/fraudulent charges. The risk is spending money that's not actually your money and then being in a situation where you can't pay it back or have to pay way more than the original purchase price because of interest. It's enslaving yourself. I think that's smarter than Suze Orman's take on things.
It's only a risk if you have no self-control of financial know-how. If you have those two things, credit cards REDUCE your overall risk (you can refuse payment if a seller screws you over. I have done this once and AmEx sided with me and I didn't have to pay for the defective item that the seller wouldn't accept a return on. They will also often extend warranties).
I think I have had at least one credit card for 12 or 13 years now and I've never paid a penny of interest but have made several thousands in rewards and been saved with a free extended warranty and a refusal of payment. If there is much of a downside, I have not found it yet
I do wonder if Dave Ramsey's company operates without a business line of credit, to cover the time gap to collect on accounts receivable. These lines of credits are normal for most (if not all businesses).
... you aren't likely to be needing anyone like a Dave Ramsey telling you such basic things.
no argument there.
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