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The problem with people such as Dave Ramsey is they throw out simple rules for simple people.
We don't buy anything unless we can pay for it, but what about things such as charging airline tickets? I travel a lot on business on behalf of my clients, and I'm sure not going to be the bank for them.
Dave Ramsey says he uses a debit card to buy airline tickets, hotel deposits, etc.
Suze Ormon's advice is even more simplistic than D.R.'s.
ICCs do not trick me, I pay twice a month, sometimes 3X if I make large purchases. Things I saved for I put on the card for the rewards and then transfer from savings to pay it exactly the same as if I was using a debit card.
My credit union has a mobile banking app. Last fall when one of my credit cards was giving a 5% statement credit back on groceries, I'd use it to pay, put my groceries in the car, and then get my phone out and literally pay the charge off before I started my car's engine. Didn't want to forget and then be surprised when I checked the statement.
This is redundant with other posts but my cards auto-pay in full every month and I get 2% cash back. I get a 30+ day interest free float on the money.
Dave Ramsey is for people who lack the self-control to manage their finances properly. If you're one of those, then cut up your credit cards and pay cash.
Your assumption that those who lack self control is just that an assumption.
Some people have been blindsided by a spouse who hid everything then walked out with all the cash and left all the debt.
Until you walk in those shoes you should think about keeping your incorrect assumptions to yourself.
I'm more likely to spend compulsively if I use cash.
I attempt to track our cash spending primarily just to see where we're spending our funds. Getting into the habit of tracking it does help me remember to request receipts. Even with tracking it, I always end up with 20% or so of available cash that I have no idea where we spent it.
I agree with your statement about spending more compulsively. If I need to pull out that CC to buy a cup of coffee, I'm far less likely to do it. I do keep an emergency stash of a small amount of cash in a hidden pocket in my wallet. For the most part though, I carry very little cash.
The problem with people such as Dave Ramsey is they throw out simple rules for simple people.
We don't buy anything unless we can pay for it, but what about things such as charging airline tickets? I travel a lot on business on behalf of my clients, and I'm sure not going to be the bank for them.
You do not need a credit card to purchase airline tickets, bus tickets, train tickets, movie tickets, etc.
A debit card which takes the cash out of your account works quite well and has for years. We have no issue traveling, making a purchase, renting a vehicle or reserving a hotel room with the debit card.
A good high-limit credit card is like a chainsaw - a powerful tool that you had best know what you are doing if you are going to use it.
Dave Ramsey is catering to simpletons who can't handle credit. Probably no one on this board is so unsophisticated as to need old Dave's advice.
Good grief, many *simpleton's* are millionaires and your assumption is nothing but your perceived stereotype. Why not go all out and refer to everyone you feel is a simpleton as trailer trash morons?
You should perhaps learn the definition of unsophisticated as well.
You do not need a credit card to purchase airline tickets, bus tickets, train tickets, movie tickets, etc.
A debit card which takes the cash out of your account works quite well and has for years. We have no issue traveling, making a purchase, renting a vehicle or reserving a hotel room with the debit card.
Nope - I'm sure you have no issue with it. Merchants actually prefer that since they pay less to charge a debit card than process a credit transaction. And if/when your account is fraudulently charged for a couple thousand in charges, see how long it takes to get that $$ reimbursed by your bank.
Also, do the merchants give you a discount for paying cash? Some will. I've paid some transactions in cash (check) because I was rebated more than the CC cash back bonus would have given me.
I had relatives who tried to use a debit card to rent a SUV at Hertz and they would not rent to them without a huge cash deposit. They also did a check of their credit (FICO SCORE). This would not have happened to them if they had a regular credit card.
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.
You know what's funny at the grocery store I don't have a clue how much my total is going to be until I hit the checkout line. At that point cash or card hasn't even entered into the equation
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