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I have no problem managing my personal finances. The Dave Ramsey stuff is for people who lack willpower and spend money they don't have. I'd rather get the free 45-ish day float and 2% cash back by using my credit cards for all my purchases. It's not YUGE money but I get 1.25% in my Ally Bank account plus the 2% cash back. That adds up over the course of a year. It's also convenient for corporate business expenses where the expense reimbursement typically lands in my bank account a few days before the credit card bill is due with the travel expenses. And did I mention the 2% cash back on it?
A credit card is a tool. Any tool can be used properly or improperly. A tool’s use is entirely dependent upon the user.
I always like to say 'You can either use credit cards for the financial tool they are or be the tool that gets used by credit cards'. Has a nice ring to it and I know many Ramseyites are a fan of snappy sayings.
Location: Chapel Hill, NC, formerly NoVA and Phila
9,777 posts, read 15,786,780 times
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Quote:
Originally Posted by Klassyhk
Dave Ramsey is speaking from experience. Years ago, he and his wife were deep in debt and broke. Throught trial, error, and self-discipline they manage to not only recover from debt but start saving and acquiring wealth. They've never looked back since that time. Consequently, he knows from experience what he is teaching others about financial sense.
Dave Ramsey might know that he and his wife cannot handle credit cards. But that does not mean that other people have those same issues. I got my first card at age 21 and am now age 50. I have never been "in credit card debt" and have never once paid interest on credit cards.
As a comparison, I wouldn't expect an Alcoholics Anonymous instructor to go on the radio teaching millions that that they should never, ever have a glass of alcohol. It would only make sense for him to teach that to people who have problems drinking alcohol to excess, not to people who can have one glass of wine with dinner and quit.
Dave Ramsey might know that he and his wife cannot handle credit cards. But that does not mean that other people have those same issues. I got my first card at age 21 and am now age 50. I have never been "in credit card debt" and have never once paid interest on credit cards.
As a comparison, I wouldn't expect an Alcoholics Anonymous instructor to go on the radio teaching millions that that they should never, ever have a glass of alcohol. It would only make sense for him to teach that to people who have problems drinking alcohol to excess, not to people who can have one glass of wine with dinner and quit.
Well said.
I appreciate Dave's approach, but I loathe his callousness with regard to people who are plenty capable of managing their finances appropriately with credit cards. Not everyone he speaks to is incapable of handling a credit card appropriately, yet he doesn't vary his message at all. This harms people who have capability but turn to him as a faith-based adviser.
I have had as many as 23 active credit cards (I have 15 now) and have never missed one payment. I ended up reaping credit card rewards that and cash back bonuses that exceed over $50,000 in cash and points/miles in the last 4 years and my only remaining debt is student loans and $12k we purchased my wife's recent car on a credit card at 0% for 12 months. My credit score is in the 800's and I was near bankruptcy 12 years ago due to an unfortunate incident after divorcing my 1st wife.
I used the snowball method to get out of credit card debt, but I also took advantage of 0% APR offers that didn't have a fee for transferring as well to limit my interest damage. Credit cards and balance management kept me from filing bankruptcy and hurting my ability to work in the finance world that I've been in for the last 18 years.
I appreciate Dave's approach, but I loathe his callousness with regard to people who are plenty capable of managing their finances appropriately with credit cards. Not everyone he speaks to is incapable of handling a credit card appropriately, yet he doesn't vary his message at all. This harms people who have capability but turn to him as a faith-based adviser.
I have had as many as 23 active credit cards (I have 15 now) and have never missed one payment. I ended up reaping credit card rewards that and cash back bonuses that exceed over $50,000 in cash and points/miles in the last 4 years and my only remaining debt is student loans and $12k we purchased my wife's recent car on a credit card at 0% for 12 months. My credit score is in the 800's and I was near bankruptcy 12 years ago due to an unfortunate incident after divorcing my 1st wife.
I used the snowball method to get out of credit card debt, but I also took advantage of 0% APR offers that didn't have a fee for transferring as well to limit my interest damage. Credit cards and balance management kept me from filing bankruptcy and hurting my ability to work in the finance world that I've been in for the last 18 years.
Which banks offer 0% BT fees? I am getting offers at 3% and using them. I had to spend 10K on a Divorce Attorney, plus 5K for upgrading my eCommerce, while I have the cash to pay it all off, I prefer to use OPM for points which I credit to my accounts to further snowball debts.
Which banks offer 0% BT fees? I am getting offers at 3% and using them. I had to spend 10K on a Divorce Attorney, plus 5K for upgrading my eCommerce, while I have the cash to pay it all off, I prefer to use OPM for points which I credit to my accounts to further snowball debts.
I appreciate Dave's approach, but I loathe his callousness with regard to people who are plenty capable of managing their finances appropriately with credit cards. Not everyone he speaks to is incapable of handling a credit card appropriately, yet he doesn't vary his message at all. This harms people who have capability but turn to him as a faith-based adviser.
I have had as many as 23 active credit cards (I have 15 now) and have never missed one payment. I ended up reaping credit card rewards that and cash back bonuses that exceed over $50,000 in cash and points/miles in the last 4 years and my only remaining debt is student loans and $12k we purchased my wife's recent car on a credit card at 0% for 12 months. My credit score is in the 800's and I was near bankruptcy 12 years ago due to an unfortunate incident after divorcing my 1st wife.
I used the snowball method to get out of credit card debt, but I also took advantage of 0% APR offers that didn't have a fee for transferring as well to limit my interest damage. Credit cards and balance management kept me from filing bankruptcy and hurting my ability to work in the finance world that I've been in for the last 18 years.
I find it very hard to believe you managed to rack up $50K in rewards in only 4 years. That's averaging $12,500 a year. I typically spend around $45K on my Credit Card each year and usually only amass around $1K in rewards. Even including any new bonuses, I don't see how you could achieve such a high reward rate unless you are spending obscene amounts on the CC. You were likely exaggerating but if not I'd be curious to hear how you manage that sort of return.
I find it very hard to believe you managed to rack up $50K in rewards in only 4 years. That's averaging $12,500 a year. I typically spend around $45K on my Credit Card each year and usually only amass around $1K in rewards. Even including any new bonuses, I don't see how you could achieve such a high reward rate unless you are spending obscene amounts on the CC. You were likely exaggerating but if not I'd be curious to hear how you manage that sort of return.
You can find it hard to believe, but with a 5% cash back card and a very creative spending method last year, I was making $5k a month in cash back bonuses for at least 6 months. Absolutely not an exaggeration and yes, my spending was obscene, but never did I carry over a balance. Unfortunately, that card ceases to exist these days.
My $0 fee for transfer card is with Navy Federal Credit Union. Annually, they do a 0% APR promo for 12 months. Back in the days of 6.25% online savings rates, I maxed out that card so I could earn a strong interest rate on my entire credit line for 12 months, paid it off, and then did it all over again. Oh, for the olden days...
Those who are accepting of the norms in banking will be shocked to understand what credit cards can do for you with a little ingenuity and dedication.
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