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one of the problems the premium cards with all the perks have like the chase sapphire reserve ,which i have , is that the card holders typically pay no interest . they pay the card off monthly like we do .
the perks and points can be come quite costly .chase said it lost as much as 300 million on the reserve card .
Don't worry. That loss was far surpassed by the people who make their minimum payments and pay the most amount of interest. It's like anything else. Someone is subsidizing the few who pay their cards off every month.
I dint have a issue with DR. I dint like when he gets really preachy and god this god that but otherwise if his technique gets people out of credit card debt or general debt that's fine with me. I carry a certain amount of debt. But it's a small portion of my income and a very little amount of my net worth.
I use my CC. In fact I just got about 265 bucks worth of diesel tonight. I used my cc. But it gets paid at the end of the month. So to me I don't care what interest rate the cc has because there is nothing to pay interest on. Some people can handle their debt others can't.
My wife and I spend about $2000 a month on our Cash Back Credit Card. We use the Fidelity Visa Card which puts two dollars in our Fidelity account for every hundred dollars we spend on the card. So at the end of a typical year we get about $480 to invest in the stock and bond market.
But if you listen to Dave Ramsey he thinks we are wasting our time and should only use cash and a debit card. He says the $480 cash back is a waste of our time and we will spend more because it is so easy to charge and likely pay interest.
I never pay interest and only spend money on things we would pay cash for. But he may have a point with many people who abuse their credit cards.
What are your thoughts? Do you agree with Dave Ramsey about credit cards being evil for most people, even if they pay 2% cash back?
It depends on the person. If you use credit cards as part of your income, I would say yes. I use credit cards to make large purchases and I pay it off at the end of the month.
I do no think credit cards are evil. It can be a life saver when things go south.
Don't worry. That loss was far surpassed by the people who make their minimum payments and pay the most amount of interest. It's like anything else. Someone is subsidizing the few who pay their cards off every month.
I dint have a issue with DR. I dint like when he gets really preachy and god this god that but otherwise if his technique gets people out of credit card debt or general debt that's fine with me. I carry a certain amount of debt. But it's a small portion of my income and a very little amount of my net worth.
I use my CC. In fact I just got about 265 bucks worth of diesel tonight. I used my cc. But it gets paid at the end of the month. So to me I don't care what interest rate the cc has because there is nothing to pay interest on. Some people can handle their debt others can't.
chase was only referring to their premium cards , not their credit card business as a whole .
in fact over all the usage is far greater on all their cards since many who have the premium cards like us transfer points from the other cards to the sapphire where they get a 50% boost in points .
but chase was to aggressive in the perks and lost a few hundred million on the premium cards . they cyt the sign up perk from 100k to 50k points .
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.
But isn't it a bit ironic that he is against using credit cards but takes them on his website???
Like most of you, I use a credit card and pay it off monthly. Have done so for over 30 years. I do think there is some truth to the premise that you probably spend more with a card than you would with cash. I think nothing of spending $100 on a meal out with my family when I put it on my card. If I had to pull out cash I might feel different.
Let's say you get an average of $50 a month cash back, that means you spent $2500 on your credit card. I guarantee, if instead, you had paid cash you would have that 2% and more, in grocery savings alone, you would have easily spent $50 less at the grocery store over the course of the month. Factor in the rest of the purchases that you would not have bought with the friction of the paying process back in play, then that 2% doesn't really seem like a reward.
Ohh, and you can't speak or free floating money and self-control in the same post, one contradicts the other.
Having spent less, I came home without some of the stuff I needed, had to go to the bank to get more cash, and make another trip back to the store to get the rest of my groceries. I don't want to go back today, I was just there. I'll go back next time I go out, but the sale is over so the stuff will cost 25% more.
I love my credit cards; so much so that I have seven of them but I don't carry a balance.
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