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I want any fraud on occur in an account not tied to my cash. Even if debit cards are afforded the same protection they aren’t afforded the same convenience. There’s no real argument here against credit cards unless you have poor credit
That is too strong of a statement as there are many groups of people that can’t or don’t want to have a credit card for a variety of reasons. To name a few examples of those that can’t, generally illegal aliens and persons under 18 would fall in that group. Then you have people that simply prefer to use debit cards (due to religion, bill aversion, PTSD/bad experience etc.)
And then there are the millions of people that get along well with their credit cards.
Shaming people who choose not to use CC is no better than shaming any other group of people based on their lifestyle choices.
That is too strong of a statement as there are many groups of people that can’t or don’t want to have a credit card for a variety of reasons. To name a few examples of those that can’t, generally illegal aliens and persons under 18 would fall in that group. Then you have people that simply prefer to use debit cards (due to religion, bill aversion, PTSD/bad experience etc.)
And then there are the millions of people that get along well with their credit cards.
Shaming people who choose not to use CC is no better than shaming any other group of people based on their lifestyle choices.
Maybe you should reread what I was responding to because your scenarios you are bringing up aren’t relevant to the post I had quoted
I've noticed that a lot of stores and pharmacies in my area won't accept cash right now. For all of those Dave Ramsey followers who eschew credit cards, what are they doing during the this time? The envelope system maybe doesn't work quite as well during a pandemic.
I just use my cc. It’s really not that hard. I really don’t carry that much cash anymore. I used to carry a few hundred at any time. Now maybe $50/60 bucks. To me my cc is cash as I pay it when I get the bill and don’t carry a balance. It’s also safer. If I lose my cc and someone uses it I’m covered. I’m stupid for losing it but I’m covered against charges. With cash....not so much.
I'm no Ramsey fan or defender, but I believe what he preaches is to avoid credit cards because its easier to spend more impulsively since you are not literally seeing the money part from your hands compared to using cash. When you use cash you feel it more, so you are more selective with your spending. And due to this feeling the amount you overspend on a credit card outweighs the rewards points. Its a logical argument that probably holds true for many people. Ramsey also is concerned about missing payments and recurring debt, which also outweighs rewards usually.
For me personally, I prefer using a C.C. and shift as much of my spending as possible onto C.C.'s. I avoid using Debit Cards like the plague as they are high risk and offer no rewards. I also keep a sizable emergency cash reserve at all times, so there is never a threat of me defaulting on a credit card payment.
Use a credit card and pay off the balance before the interest starts to accrue.
Do people realize that only a small percentage of people can pay their full balance each month? It would be better for most people to not use credit cards since they cannot pay them off each month.
Do people realize that only a small percentage of people can pay their full balance each month? It would be better for most people to not use credit cards since they cannot pay them off each month.
data says otherwise .
those that pay in full are a sizable percentage ..
according to the federal reserve
45% always pay their card balance in full each month.
27% carry a balance most of the time.
21% carry a balance some of the time.
6% carried a balance just once in the past year.
those that pay in full are a sizable percentage ..
according to the federal reserve
45% always pay their card balance in full each month.
27% carry a balance most of the time.
21% carry a balance some of the time.
6% carried a balance just once in the past year.
Not to mention, that data is potentially skewed because people can float balances on 0% interest. I “carry a balance” most of the time according to that polling question.
Not to mention, that data is potentially skewed because people can float balances on 0% interest. I “carry a balance” most of the time according to that polling question.
Exactly. Carrying a credit card balance in and of itself is NOT an indicator of financial health. One needs to look at the overall balance sheet.
Case 1:
Credit card balance: $20,000 at 0%
Current liabilities: $5,000
Cash/Cash equivalents: $200,000
Receivables: $8,000
Case 2:
Credit card balance: $0 at 20%
Other current liabilities: $5,000
Cash/Cash equivalents: $1,000
Receivables: $3,000
Case 1 is incontrovertibly in much better financial shape than Case 2. Case 2's receivables and cash/cash equivalents cannot meet their current liabilities despite having no credit card balance. Case 1 has more than enough cash/cash equivalents to service their current liabilities AND credit card debt many times over. If the 0% rate ends tomorrow, they can pay off the balance in full immediately.
those that pay in full are a sizable percentage ..
according to the federal reserve
45% always pay their card balance in full each month.
27% carry a balance most of the time.
21% carry a balance some of the time.
6% carried a balance just once in the past year.
Guess the Dave Ramsey followers are the 1% that don't have a credit card balance to pay. They paid all their bills in cash or debit card.
Baby step 1 they have $1000 in emergency fund
Baby step 2 all the debts are paid except for the house
Baby step 3 they have 3-6 months emergency fund saved.
Baby step 4 they put 15% of their pay into a retirement fund.
Baby step 5 pay off the house
Baby step 6 take care of children's college fund
Baby step 7 be generous with their money
Baby step 8 retire with no debt, they have plenty of money.
Maybe in Covid they used their emergency fund to pay some bills. When they get back to work job 1 is to refill the emergency fund. They did not cash out of retirement funds so that they can ride out the storm. For 4 months they bought only shelter, food, medical supply, not much else
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