Congratulations!

Congratulations

Way to go!

you cant pay your mortgage with credit cards

Congratulations! That’s amazing to hear

@@ALCAN52 and if you just paid cash and debit along the way you'd have saved enough money to buy those tix outright at least twice. the credit card companies and banks are tricking your reward portion of the brain. everyone wants to get something for nothing. even using credit cards properly (no such thing, but just for discussion sake) there is the potential to run into financial irresponsibility, much less potential when using cash and debit

@@ALCAN52 just because you buy things you would normally buy doesn't mean you don't overspend. i get your situation may be a little different because you can't physically shop, but it would still be more responsible to have a debit card for purchases and auto deduct for other expenses. i still use cash too, especially for purchases under $100. i hate seeing people swipe for $2. really? you don't have $2 on you?!

@@eatpigsnot You make a fair point here, but I'm against Dave on this one like @ALCAN52. I never use cash unless I absolutely have to. I have swiped by credit card for as little as 10 cents to avoid using cash. The reason? Free money. Every time I swipe my card, I get 1-3% cash back that I deposit directly into my savings account. It's like getting a discount on everything I purchase. If I paid cash, I'm paying full price for everything which makes no sense in my brain. Now, the caveat here is that I pay my bill in full and on time. I have never paid a penny in interest or annual fees to a credit card company and never plan to. Plus, credit cards have fantastic legal protections that cash, and even debit cards to an extent, don't have. Some years ago I had my wallet stolen. I had about 90 bucks in there I never saw again, but when that thief used my credit card at a Walmart in another state, I called the bank and had the transaction reversed and didn't pay anything. I won't claim that this strategy works for everyone or even the majority of people, but for those who are disciplined and able to pay their bills in full every month, a credit card is a great way to build credit and enjoy rewards that cash cannot provide.

@@Kory31691 banks are not in the business of giving away money. just because you pay in full on time doesn't mean you don't spend more overall in the long run. also there's the possibility of an emergency that prevents you from paying the bill. debit and credit cards offer the same legal protections.

@@eatpigsnot You don't seem to understand what ALCAN52 was saying, or even how this works. He spent the exact amount of money he would have spent anyway. The only reason he even is able to cover those flights is BECAUSE he used a credit card. If he had used a debit card, he would have actually saved less. It's true that most people don't have the discipline to do it this way, but if you do, it saves you money overall.

yea I agree if you have money use your credit card like a debit car meaning pay if off every month. treat it like money you have vs money you don't't have and you can rack up tons of credit card points quickly and fly to other countries with the regular things you spent on anyway.

Maxime Mobayen most people cannot handle this and puts you at risk of relaxing your spending. Discipline is important but if your safety should come from the confidence in your ability not to spend and not in that you have a safety. I am that disciplined but my wife is not. It is psychology that cc companies and banks understand well and make lots of money on.

For the average person he's 100% right. Most people can't use a credit card responsibly. Those that do were most likely penny pinchers naturally anyway. If your not the kind of person who buys nothing but necessities and gets excited to save 2% on those necessities don't mess with credit cards.

Yes!🤣

OMG....hilarious comment

Holly B My husband and I are only a millionaire, but I've used one credit card and paid it off each month for decades. I've often used my rewards cash to give to someone in need. But we have some impulse control.

Lynda Brown That’s exactly what I do.

Riiiggghtt

But I’m sure you didn’t become a multimillionaire by using credit cards. If you’re a millionaire are a debt free, sure why not use the little perks. But most people are not.

National JudahGraphic All of the small things I did made me a millionaire. Like, automatically saving each month, pretending I didn’t get a raise when I did and putting that raise money on my mortgage, not overspending on cars, using credit cards wisely getting the cash back, etc...

YellowBrickExpat bingo

Dave is also a recovering debt a holic. And just like a recovering alcoholic he has a zero tolerance for the thing that tempted him into despair. Some people cannot touch a drop of alcohol and some people cannot handle a single credit card. For me, cash is something I don't track and easily spend if in my wallet. But when I use my credit card total up my bill subtracting that from my income and my savings, that's when I feel pain. I will never use a debit card because of the security problems. It is too easy for someone to swipe your debit card and access all the funds in your bank account. I have heard way too many horror stories a people's entire savings being wiped out buy a fief. Yes you can't have your savings restored but it takes time and a lot of aggravation. If someone swipes your credit card number and racks up a debt, you immediately protest it and keep your money well the credit card company sorts it out.

@@broganmckoko thief* not fief

that's why they are begging to use credit cards too. those babystep 2 peeps are tied to those advertising of the credit card .

Yeah, like they actually need his permission to do so.

I mean credit cards aren't evil. It's the user that can't control their habits. Some people are absolutely better off not having one at all. It's like asking an addict to only have an ounce of their addiction. It's not going to work out.

I know😄😄

Mary Takahashi and that’s just it: they act like they need his permission. DR honestly doesn’t care if anyone takes or doesn’t take his advice. Millions of people have taken his advice and they’ve succeeded.

@@mikenelson8377 and even more have never heard of him and succeded too

Yes but 90% of his audience does not. So he has to play to the majority... It is like you are a waiter and 90% of your customers are allergic to mushrooms and ask you if they should get the mushroom swiss burger...

Edward Rhoads *underrated comment

@@edwardrhoads7283 This is not playing to the majority. A lot of the statements he makes on credit cards are straight out false. If he differentiated and explained the reasoning, then it would be better. However, Dave just spews generalities as if it applied to everyone, everywhere.

Im sure every person who ever got a credit card and ultimately had a credit problem said in the beginning that they were financially responsible and they would 't abuse it.

The study says you spend 18% more with a credit card. At that point a 2% cash back from the card company is a non issue.

PahJammer I’m the exact same. Dave says he is cool with a debit card.... it’s still a credit card because Visa/MC/etc. all back it.... look at your debit card, it has a Visa or MC logo. Plus, it’s just as easy to use as a traditional credit card. I pay my credit card off every single day. No joke. I make about $1K a year from cash back rewards. Why wouldn’t I do that? 🤨

I have 16 cards and am in the same boat.

@@pandafox12 why do you watch Dave then

@@Dr.C_Stag because it's likely you are spending more than it's worth to get the cash back. It's not spending and having the discipline to pay it off that's the problem, lots of people do what you do. It's the psychology behind it. This whole conversation was about how people tend to spend more because there is no pain point triggered when using a credit card. Even the most disciplined individual could fall prey to this and get two candy bars instead of one just because you know you'll pay it off plus get the points from it. That's what he's saying the problem is. Even if it's only an extra $20 a year, it's $20 more than you would've spent had you been using cash or a debit card instead because of the mild pain associated with it.

I have four rewards cards with their corresponding apps on my phone. I use my credit cards like a debit card because I know that I will immediately go to the app and pay that card once the transaction clears. I do feel pain when I spend because I feel it's coming straight out of my account.

greenlime1234 Same here! If I withdraw $80 in cash but only need $70 of it, I will find a way to spend the extra $10. If I use my debit card, I’m only spending the $70, and $10 stays right where it is in my account. I rarely carry cash these days, I mainly lean on my debit card.

ditto, i don't have a paper trail with cash. With debit card I have to answer to momma when I get home. :)

100%! Me too! And I do use my credit card sometimes to make purchases but never carried a balance because I pay it off each month. No issue there

Exactly, I hate holding cash.

Agree 100% especially with my kids. Since they ask for money constantly for random stuff, if I don't have it on hand I just tell them no. Had my wallet been full of $10 and $20 bills I'd easily have spent way more. Same goes for people panhandling - "no sir, don't have anything to give you"

I'm entering the chat now too

Still spends under 1% of his income with all those credit cards. Discipline is the key. People with no credit are still broke because they are not disciplined

@grahamstephan

And meet Kevin!

Truuuu. Plus at 2:20 Dave talks about the psychology of how the ease of credit cards can cause the average person to feel less guilt in spending and spend more but anybody who watches graham knows if he buys anything that costs more then 20 cents he starts hyperventilating and seizing so I think graham, and not just him, are exceptions here

I just got a Discover Visa a couple of months ago. It's cool to see the amount of cash back with every single purchase. I pay it off monthly and my limit is not too much.

All right: but you're never getting out of debt, and you will always be paying for your groceries twice.

@@Musicienne-DAB1995 and who said I was on debt🤔

Hahaha 🤣

...and dave is lying when he flat out says,;; you can't use your credit card like a debit card''. my CC has been linked to my CA for over 5 years...

@Tyler he was a millionaire before KZfaq.

Point is Graham teaches you how to maximize rewards on his channel...

kalek sts Dave has travelled the world speaking to thousands of millionaires. None of them got to where they are by cashing on on credit card rewards and miles. Ditch the stupid cards man.

@@costco_pizza This is a misunderstanding because what you said is my point. They will never tell Dave they become millionaires by using credit cards because if they did used them at any moment it was for some minor stuff and not for rewards or miles so for them credit cards are non existent and that's why they don't talk about them. I only have debit cards. While I grew up my mother either had the money to buy it or not. And not living in the US helped too. Around here most people have debit cards or pay cash it is very uncommon to see credit cards at least where I spent my time. I did have student loans but following Dave's plan I paid that out quickly. Finished the emergency fund and just started with baby step 4 a few months ago.

@James Marquis As I said to ACR my comment was misunderstood. I have never use credit cards and after finding Dave I'm glad I haven't. But let's say that in 10 years I'm already a wealthy person, I will never talk about how credit cards helped accomplished that because I never used them. I'm with you guys, last year I graduated from university and in one year thanks to Dave's teaching I paid my student loans, completed baby step 3 and 3 months ago started baby step 4.

People never got rich picking up 100 dollars they found on the street.

ACR I want to hear millionaires answer the question "do you have and use a credit card?". Bill Gates has a CC. Get real and stop being willfully ignorant.

Sean Pullman young adults should not not have credit cards. they don’t spend enough money to rack up the points to make it worth the likely hold they over spend and get in debt

jr smith there’s plenty of young people who can handle using a cc responsibly and plenty of middle aged people with several cards maxed out. It’s a discipline issue, not an age issue.

As most do

And he will 100% never get out of debt.

Great educational benefits in the military.

My son is about to graduate with 2 degrees physics and math then he is joining the military for 5 years -they will pay all his debt! Great plan for him

Jonathan Atkinson Do what you got to do. Most don't have the discipline. I personally have been using my credit card like a debit card for over 30 years with no issues.

@@blackworldtraveler3711 if it doesn't come out of you account automatically it's not using it like a debit card. even paying the bill in full every month you've obviously spent tens of thousands of dollars more in the last thirty years than if you paid cash/check/debit

Jonathan Atkinson well done man. Same here. You nor I are going to become millionaires off of airline miles and cashback. Ditch the stupid cards everyone!

ACR Just like Dave said, all those rewards incentives only get you to spend more money. No wealthy person ever spent more of their money unless it created more income. Credit Cards don’t produce income.

Jonathan Atkinson Already said most don't have the discipline and you have to do what you got to do. I know many that can't control themselves with credit cards or debit cards. Credit cards are tools for me and profit. Those points used to annoy me because I've had AmexBlue and Platinum Visa long before credit card awards thing started. Didn't care either way until I realized I had $7k worth. Figured out how to use them now and have been paying my monthly Audible and Netflix subscriptions with them since 2012. Amazon made it convenient for me to use them as well with online purchases. Think I will buy myself the large iPad Pro with a few points for a Christmas present.😃 And mileage awards are useless in my case. I use my credit card to pay my annual auto/home insurance and personal property tax. I pay my annual $1700 person property taxes in two weeks and already have $3k cash in my AmexBlue to cover it. My credit card is my debit card. My dad taught me how to do this long before there were debit cards. I was also saving since 4th grade and investing with a Schwab account since 10th grade. You do realize debit card holders paid over 40 billion in overdraft fees last year right?.....and growing each year. ....mostly with the Visa/MasterCard logo so you know what that means? Dave Ramsey mentioned that last year in one of the videos but said much else about it from what I remember. That's why I own several thousand shares of of MasterCard and Visa years ago. I bought them around $4 a share....with compounding dividends through the years.....look it up.....do the math. I watch adults buy pet rocks at the mall in the 70s and never forgot how stupid that was.....had an epiphany realizing people will buy anything even with money they don't have. Used my credit cards in over 50 countries with no issues,no interest,no penalties,etc.. I make $135k-$160k a year and always lived on less than $50k. Finished contributing $18k to 401k last month and the extra $1200 biweekly for the the rest of the year will go complete my Roth IRA for 2019 on New Year's Day. Minimum of $3k a month and dividend spillover goes to savings,investments,emergency fund,etc. I have a $400k emergency fund. Started my nieces and nephews at 14 on Roth IRA and give "uncle match" to motivate them. Currently doing fine on less with $1k biweekly budget because I have no debt. Have around $5k in cash at home for years. Don't carry cash anymore because wallet damage it after a few months. I give myself $200 a week allowance to do what I want regardless of whether I use cash or not. Already have around $25k cash to buy my next used car in a few years and still growing. Just come back from a week in Hong Kong. Cost me nothing to fly round trip business class because I have free lifetime global flight benefits and and 90% discount on most foreign airlines. I stayed with friends. Spent maybe $300 on my $30k travel budget. I'm disciplined with finances including everyone in my investment club of 30 years. Anyway Ramsey already said I was in the upper 2-5% that don't apply in this matter. That's why I say to everyone in your case to do what you got to do.

I like that theory

@James Marquis I've never carried debt in my life but watch Dave for the entertainment and experience of other people's lives. Not every single person is bad with money or self control but that's not the audience Dave talks to so of course he's not going to promote something that's dangerous to people who are bad with money.

@@WinterWind Same here. Use credit card but never had a balance due at end of the month because I always clear what I spend before the amount is due. ( Automatic Online Transfer) Also, I don't over spend simply because it's a swiped method vs cash method. It's called disciple and only buying what is necessary. Also, I've never had debts in my life. I just watched Dave Ramsey to hear people call in for entertainment purposes. When my parents was sick with Cancer, I paid for all their Alternative Treatments (which is not covered by insurance) it's pretty much cash or credit only. No insurance accepted. So if I have the money to cover my parents cancer treatments, guess what, I don't worry about over spending on a credit cards. Lol Again, never had debts in my life. Even my house is paid for as well as my two apartments (which I rent out). Not everyone who tune in to listen to Dave is bad with money.

I do the same... Using real money in public is a bad idea. "but if they steal my debit card I will get it all back." Okay, so while you are waiting to get your money back your mortgage comes thorough, or your overseas and having to deal with real monies being lost. The bank sees your cash the same way you do; a real loss, they are going to deal with as such. We all handle our money the way we chose to. Dave offers one of many ways to do so... Find your path and follow it.... But have a plan, money without a plan is a recipe for disaster.

@@terriesmith8219 Absolutely

@@tdmorgenthaler8384 I don't know a whole lot about fraud or theft reimbursement as I've luckily never had to file for reimbursement however I live in a country where almost no one uses cash and everyone uses EFTPOS cards (literally comes out of your account... like a debit card, but no online payments, hence the credit card for online payment). Anyway, I don't know about other people but cash just annoys me, it doesn't cause more pain from spending it, it's more the anxiety of shoving the coins back into my wallet before the next customer or counting the change given causes me to swipe the card for $1 purchases. I don't spend more or less either way though and even if I did, it's all within my own means, a concept I gather from listening here some people can't understand.

He's given that answer before - acknowledging that the asker is probably a disciplined person who will probably continue using their card without getting into trouble. The reason he generally doesn't give a more nuanced answer is because people generally aren't wired to accept that they are anything but totally capable of managing their finances and keeping their credit card. If his anti-credit card message allowed for the possibility that one could be disciplined and use credit cards, most of his listeners would reflexively assume that they could do that. When the truth is, they can't.

ASimoneau, So receiving a CC bill that you can't pay is not enough for you to understand, and you need Dave to tell you???? Good gravy! It's been my experience that people who can't handle CCs can not handle a check book or cash in their pocket. If they really need for someone to explain it, I have to question how they two nickels together in the first place.

@@jamie49868 You seem both to understand the reality of the situation and be confused by it, simultaneously.

I kind of understand Dave's position. You have to understand that he is mostly helping people who come out of a financial wreckage in their lifes because of a lack of discipline so he is not gonna say that it's OK to use a credit card.

Very wealthy people, millionaires and billionires, Bill Gates, Warren Buffett should all use credit cards!

Todd D. Annual fees are a good thing They are by far the best cards

Dave's a hoot. He will tell you to sell a kidney for $1.50, but will pass on the cash back. He is just spouting nonsense on this one.

You are paying utilities anyways.

If you have a balance of $100, you have to repay $100. If you didn't have that balance, you could have kept the $100, which would help you a lot more than $1.50.

@@Musicienne-DAB1995 yeah just simply never spend money ever. Food? Diapers? Not necessary

Erik Rohr preach it!!! Agree 💯 Be smart with your money, live by your budget, and pay off the cards to simply leverage your money for points, miles, and cash back. That’s all! Haha! I don’t get why no one understands this.

Multimillionaire here. I put everything on a cash back card. In 33 years, I've never paid a penny in interest or fees. Almost all of us who are "Everyday Millionaires" use credit cards.

Liberal Defendant well I would expect that ratio as most people who are broke come to him for advice. I’d think that most millionaires would spend their time doing other things rather than watching Dave Ramsey’s show constantly.

And as of 2017 not including 2018 American’s have racked up over 1 trillion in credit card debt, so I can see why he argues against anyone using it, especially since it does not seem to be working for the majority of his callers. Yes, there will be a few millionaires that use credit cards, but we all know his show is tailored towards people who are in debt, so the average millionaire probably wouldn’t spend time watching his show to begin with.

libertarian4323 I can see that. I am not saying anyone is wrong, but I will say I can see why he tells the average caller not to fool with them considering American’s have racked up over 1 trillion in credit card debt. As you can see based on those numbers it does not seem to work out for the majority of Americans. I can see where it does work out for everyday millionaires, but I also understand his point about millionaires don’t use it as a form to build wealth. It’s really a silly argument from both sides, but I do understand both sides.

Mr. Wick that’s great. Sounds like you are good at budgeting, saving and investing money which is what he wants everyone to do. The average caller does not understand the latter which is why he is against using a credit card.

@T Hambone By that logic, we all should definitely be using a credit card then, to offset the extra cost with rewards points.

@T Hambone Nice deflection, but no. You'd be a fool to think that.

I was in the same situation, but with a $129 purse, around Cyber Monday. I ended up not spending money :)

This mantalityis the reason people get into cc debt. You should never spend money you don't have no matter if it's cash, debit, or credit. People that use cc wisely would save that 1k up in cash or in savings and then purchase on cc2 pay it off and receive the benefits of the cash back feature.

That’s seems more like a discipline issue than a credit card issue to me

Lol

@James Marquis I sure did. Been following Dave for a long time now. Using a credit card doesnt cause me to spend more to try to get "points". I use a credit card because it is safer and more convenient. Dumb people allow a credit card to influence them, so my original point still stands.

@@MMA-mh9uv Agreed. You're 100% correct. ✔💯💯💯💯💯💯

@JESSICA BRYANT thats what the emergency fund is for...

while plenty of irresponsible morons get into trouble with debt and credit cards, plenty of responsible people do as well. think i'm kidding? watch IOUSA, Maxed Out, and In Debt We Trust. Dave is in one of those for a minute, but none are by him or about him. also watch BBC special The Men Who Made Us Spend and PBS Frontline episodes The Secret History of the Credit Card and The Card Game

@JESSICA BRYANT that's what a fully funded emergency fund of 3-6 months of expenses is for

Yes omg yes. How does Dave not understand this. I use for my business and get 3% cash back on every purchase with no annual fee and usually get around 10K cash back at end of the year. Not saying Dave is stupid but I trust the guy in real life who the movie “Catch me if you can” is based on. He said exactly the same thing you did about the theft of a card.

Vlad Xavier yes it has same insurance but now you have to fight to get your own money back not simply make a phone call and get a new credit card 2 days later. It’s much more complicated to get money back from a bank than it is for a credit card when fraud happens. I’ll send you a link to show you this from an expert. So no I’m not wrong

Exactly- cash back card and pay it off each month.

Exactly. Dave just assumes that everyone is stupid with money.

Me too. Long as you pay it off every month and collect the miles off of it. But I'm still on step 2 so... Maybe I'm wrong lol

cumminsdieselable yes you are lol. Hate to break to you , but continuously going into debt every month and paying it off right away does not build wealth. The opposite actually. You tend to spend more than you typically would or need to. People get motivated by the little bones credit card companies throw at you they call “rewards”. They aren’t free, you had to spend money to get there. You could’ve just saved the money and put it towards wealth or paying off debt

But I bet you spent extra $$$ here and there over the budget using the credit card.

But you're not financially disciplined enough to get completely out of debt, and to stop losing your income just to repay debt every single month, only to start the whole cycle again next month.

You are the exception rather than the rule .

@@WISHBONEL7 dave Ramsey is not god hes wrong on this one

@@DSNCB919 The advice that Mr. Ramsey gives will work for most of the people , most of the time . If it did not , then the credit card company's would probably go out of business !! . What part of that do you not understand ?? .

@@WISHBONEL7 what evidence do you have other than him just saying so? It clearly makes more sense to use credit and pay off before the balance gains interest

@@DSNCB919 What percentage of people actually do that ?? . Do credit card companies go out of business , or have to get bailed out by the government ? . I take my hat off to you if you are one of the ones that actually pay your balance off each month , yet just keep in mind that many people don't , and the calls that are on Ramsey's show , are a microcosm of USA society .

I just got my AMEX blue cash 👍🏾🤣

I just cash flowed a trip to Disneyland and earned rewards points because my bank offers a debit card with rewards points on every debit card transaction I make.

You guys didn't get the memo ehh?

Lol freedom yeah 😂

Now spend all the credit limit and never pay back 😂😂😂

BMO, Dave would be the first person to tell you to use a coupon for the rice and beans. He is wrong about this. The question should be do millionaires have credit cards they use properly. Dave would get a totally different answer, but it wouldn't support his argument. It all adds up. Dave should know better.

@@jamie49868 "The question should be do millionaires have credit cards they use properly." Exactly, perhaps some cause vs effect "mistakes" in the data analysis.

I bet 99% of the millionaires out their use credit cards to buy stuffs, except that fool Floyd Mayweather Jr. lol

Like you said you implemented a budget. Isn’t the reduction due to the budget?

nemo Keep the budget AND the CC. It’s really simple

Amen

@@butteredbread1756 Why?

@@Musicienne-DAB1995 Because the CC wasn’t the issue. It was the lack of budget

It’s so stupid. Obviously no one has gotten rich from coupons but that doesn’t mean you shouldn’t use them.

Yeah I'm so tired of this argument too. It's not even a good one. But it's fine. Dave's audience are people who can't -- for the life of them -- know how to control a credit card or maintain a budget. And once they get out of debt, he doesn't want his viewers to go back to credit card cards -- even responsibly -- since they're already associated with everything negative they just went through them. And worse they could rebound into debt again. He doesn't want anything to do with it. Which I think is great even though it's flawed. I understand what Dave is saying. Logistically it makes sense to use credit cards if you are going to use it on things you would have purchased ANYWAY and didn't purchase something more expensive just for the points.

CARLOS GUTIERREZ you guys just don’t seem to get it. What millionaire on earth has gotten to where they are through airline miles and cashback? No, ditch the stupid credit cards and start getting yourselves out of debt!

YES Carlos!!!!! This is my feeling too!

@James Marquis You didn't listen to a word Dave said. Carlos brought up a point Dave didn't mention. Maybe you should re-watch Dave's video, because you obviously didn't understand what Dave was saying.

But he did the biggest study of millionaires EVER, and he has DATA POINTS. And, most important, he has books to sell

?

311allmixedup stupid decisions You should look at point based cards a lot of time you can get way more points on everything compared to cash back cards Downside is though you’re more limited with your options and cash is king

You would have saved double what you earned in "rewards" if you'd use a debit card.

Ashley Dawson how stupid are you? If you were already going to make the purchase anyway If you use a credit card you get something back When you use debt you get no purchase protection and no rewards back or extended warranty Extended returns Bunch of things

Ashley I just purchased new kitchen cabinetry. I saved up to do so. I put the whole $8,437 on the CC. I paid the card in full the next day. Either way I was going to take out 8437, but since my CC is 2%, I got to put back $168...how stupid of me. Ash, I can't wait to make the same mistake when I pick out my granite tops. Good gravy you are dumb!

jamie t what a beautiful comment God Bless You

Heck, I want 2% if I'm spending $1. Dave advising people to blow off free money is irresponsible.

@@jamie49868 it is not free money. You buy more stuff with a credit card

@@nsbioy No. You may buy more stuff, I don't. If you don't have discipline, it doesn't matter the method of payment you choose. If you can't walk into a store and only purchase the items you went into to get, you will be broke and have trouble paying the electric bill. I have never walked in to buy underwear and walked out with a bike. Credit is extended on all sorts of things you don't think about. So if you can't control yourself, you will always have problems when those bills come due.

@@jamie49868 nothing personal, but you sound like a person who started using an addictive substance and says that he can quit at any time. Guess what? You are right, some people can and do. Look where people end up on average, though. A credit card is a financial cigarette, plain and simple.

@@nsbioy No offense, but you sound like a person who can not resist temptation. If you lack the discipline to use a card properly and are constantly in financial trouble as a result, then by all means, you shouldn't have one. I'll give you an example of my usage - I recently purchased new kitchen counters and granite tops. Total cost about $14,000. I put it on my card, went to the bank the next day and paid it in full. Cash back was about $210 (my card is 1.5%). My card has $0 fees for good customers, so there is no back end charges. I guess you don't want to save that extra money. I do. Peace.

If I spent 40 one month then the next month I spent 80, that's a 100% increase.

If a cc buyer spent 8 at a vending machine and the cash buyer reduced by 178% its 4.49. I work in business and this is done all the time.... likewise take 4.49 and multiply it by 178% and you get 8.

Richard Feinburg he did answer the question but just jumped straight to the psychology of spending. The concept of friction that Dave explained is true and has an effect to most people over time. Meaning, initially one that uses the credit card like a debit card will be diligent and buy things they only would have brought anyway and no more. But over time, most people ( and I stress “most people”) will loose that discipline and the psychology of friction will take hold and lead us to spend more. Only those who are super diligent about their spend over a long time can benefit. He also touched on how its often not worth the reward. Most cash back or point rewards are worth 1-3% so in order to earn enough points book a $1000 round trip airfare entirely with points, you would have to spend ~$50,000 on the card (2 points per dollar rewards card, 1 redeem point is worth 1 cent, which is also equivalent to 2% cash back) in above example you need 100,000 points to pay for the $1,000 plane txt. So you have to spend $50,000 on the card to earn the 100,000 points at 2points per dollar aka 2x point rewards cards.

Everyone's the exception to the rule until they are not

DJSHARK9000 preach it!!!! I agree 💯 As long as you have self control and are responsible with your money and are able to budget yourself. Then you can easily use your money for just a little bit of leverage for travel points, miles or cash back!

@Liberal Defendant they reel you in.... correction please. No one forces you to use that cc. You reel yourself in, not the cc company. End of the day.... if you have cc debt. You did it to yourself. Not "they".

It's just the group of people Dave caters his show to. COULD you use a CC and pay it off monthly? Yes. Does a credit card cause you to spend more? Yeah...if you aren't sticking to a budget. I use my CC for my recurring expenses like car ins, electric, etc and pay it all off monthly. I've paid off 70k in debt in 18 months. Dave has his concrete plan because of the majority of people he gears his show to. These people are not responsible after starting his plan if theyre still allowed to use CC. That being said, my fiance is on the Dave plan and because I understand her previous spending habits, she is NOT allowed to use CC. She does cash or debit with everything.

kenz200g I just purchased new cabinetry for my kitchen. I saved up to do so. I put the $8,437 on my card, went to my bank the next day and paid it off. My card is 2%, so I got $168 back. Either way I was taking $8437 out, now I get to put $168 back in. Yep, that sure was a dumb move on my part...can't wait to charge the granite counter tops and make that same mistake again.

Watch this video dummie.

@James Marquis you can listen to what he said and still disagree with him. It's his opinion. I feel the pain with credit just as much as I would a debit card. I log in my online account and check my balance daily.

🤣

I just skip church altogether, saves me 10% of my income every month.

Same. 😁

he is trying to make the point that you always spend more when using credit cards. even if you pay it off at the end of the month and pay no interest....you still are spending more money or people tend to be loose with the money if it’s not cash. I have witnessed people in my payment line with cash in one hand and a credit card or debit card in the other hand and they always seem to have a easier time forking the card over for payment verses handing me the cash. It’s like they deem the cash more valuable then the card........the two thought processes are completely different. I see this behavior over and over again as a cashier.

its not really free. you paid

@James Marquis Do you get paid by the hour to copy/paste, "Wow, apparently you didn't listen to a word Dave said. SMH!" replies for every comment that disagrees with Dave Ramsey? Or is it a flat-rate?

rosen380, that idiot probably pays to post with his credit card. Peace Bro.

The argument that humans dont have the mental capacity to not spend money they dont have unless they literally hold it in their hands is ridiculous. You have to hold yourself to a higher standard. Youve put yourself in a frame of weakness that you will never succeed from.

would you then agree that not everyone have the same self control/discipline like you do? if so, then that's exactly what Dave is talking about.