Dave Ramsey on credit cards

[acarouselofantics]

My parents love Dave Ramsey!!

[CreditCardsAussie]

I don't think credit cards are definitely good or bad. It comes down to how we use them. Like driving in a car, a car can be helpful or dangerous it comes down to how we use or manage the car. Say with credit cards, use them in the right way and with respect that if you don't they can be dangerous.

As for all of this "Millionaires say credit cards are scam for middle class" that's Rubbish, Millionaire's use credit cards like everyone else, they just pay them off and manage them.

[makeiteasyable]

ty

[blackdragon1911]

This is complete nonsense. I have cashback card earning 1% on all purchases. I get paid for spending money which I would spend anyways. I have a budget and limit what I spend and monitor it weekly. My credit companies have never not posted a payment. My point is I make more money using my credit card then spending it in cash. Cash is for undisciplined people who don't have any clue on how to game credit cards. In fact the morons that revolve on credit cards subsidize reward cards.

[kentimusmaximus]

My sister made this same argument about saving money by getting a discount. She's an idiot and debt is dumb and cash is king is right. I've been following his advice for awhile now im only 6 months away from buying my first house cash. Screw the bank im not paying a bit of interest

[jebenn23]

I'm at least 15 years away from buying a house (I'm going back to school to get a phd) so maybe I'll get a credit card in 11 years to build up my credit rating. But I hope to pay cash for a house in Colorado.

[neemguy81]

@jebenn23 Why do you need a credit rating if you plan on paying cash for a house?

[chifylube]

So how do you suggest I build my credit rating so I can get a house some day?

[MPaulHolmes]

@chifylube You go through a direct lender.

[neemguy81]

@chifylube Screw credit...pay cash for the house someday.

[chifylube]

@neemguy81 Nah, really not worth it. You never really own your house anyway (property tax). I'll probably just save money by renting forever.

[cheeriosinabowl]

Things were so much simpler years ago, when we paid for (almost) everything with cash. If we didn't already have the money, we saved up and then bought the goods. Personal debt was minimal 30+ years ago.

Years ago, it was harder,  far harder to get a bank loan and a credit card. Now it's so easy to get credit. No wonder personal debt is a crisis and getting worse.

Dave has some good ideas, but to me he's just another money guru. Next.

[DojangRat]

I know people who make every single payment with a credit card. They never carry cash. Even a 1 dollar candy bar at the gas station they put on a credit card. They have 9 different cards because they think they save money buy getting a "company credit card" like a Sears CC for example. They think CC are the only way to go and brag about their credit score being high. Meanwhile they are in debt for years. I would rather have money than a high credit score. I'm weird.

[cheeriosinabowl]

@DojangRat

... good points you made. I'm weird too, I have money (real dollar bills!) in my wallet and a low credit score. Credit cards should be made a lot harder to obtain, that would help weed out the weaklings who buy everything with these cards.

[ir10031981]

I've been living and thinking like that caller Jim, I can relate. Thanks Dave, we could all benefit and be motivated by your radio show.

[ir10031981]

I think I'm gonna have to dump two things, #1 credit card, and #2, my girlfriend if she doesn't want to understand how I feel.

In 2011 I made a resolution to stop using my credit card if not cutting it up, I thought I wasn't gonna use my credit card any more, until the day I went to the mall with her and bought her stuff. And my cousin , who graduated college, suggested I raise my credit limit, oh boy. I'm finally ready to go back to doing it Dave's way. Good riddance Visa!

[marisole771]

ALMOST DEBT FREE (EXCEPT STUDENT LOANS, BUT THE SKY IS THE LIMIT).

SALLIE MAE AND FEDERAL DIRECT WONT GET ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!­! LUV DAVE RAMSEY PLAN.

[ir10031981]

if you make $25,000 or less a year , you're headed for trouble in your marriage or relationship, pfft, I got a girlfriend who's 19 and doesn't work, if I talk to her about budgeting, and not using credit cards ever, I predict a good chance she'll flip out , not care and maybe leave me. I'm making roughly $17,000/yr, I believe I am a good example of my statement.

[82snowball]

@ir10031981 What? so you earn a low income and plan and making up the difference by using a credit card, you are in big trouble dude. Low income earners still need to budget. I started out working at a service station pumping gas and am now a self made millionaire, and let me tell you with out saving and bugeting I would have nothing,

[MegaMORGMAN]

Credit Card's are legalized loan sharks. Credit card companies are pirates out to look for treasure. Captain hook types they need their slaves for the money also the ones who get paid nicely to make them look good. People stupid enough to sign up for captain hook's crew get what they deserve it's the same way with credit card companies.

[nadine2k101]

@ir10031981 what's wrong with you? why would you want to do that? if anything, get rid of your credit card, cut it up, dump it, cancel it! whatever, credit card companies love to charge interest and they therefore want to keep you in debt. I owe $22,000 in student loans, and just like my sister, I avoid credit cards. Trust me, credit cards suck, pay with cash dude!

[ir10031981]

how do I raise my credit card limit?

[welton1971]

what about when employers ask you to get a credit card?

my last job caused credit card debt

as soon as the job ended, I destroyed the card

you cannot destroy a credit card if you need it for work

[Joeys48]

Typical Ramsey call.....

Hi Dave. I got a 75% discount on my first purchase yesterday at Sears for opening up an anual free CC. Did I make a wise decision? Dave responds..You didn't tell anybody you did this did you? You will look like a fool if you do! Your an idiot! Don't you know they have their hooks in you now? What if you make a late payment?  But Dave, I never pay late! You will because you're not following my advice which means you're a stupid idiot.....Let's go to the next caller.

[82snowball]

@Joeys48 3% per year of $1000 is only $2.50 per month, which is less than a happy meal. Dave was saying if you put your $1000 in a bank account for 1 month while you use your credit card you wouldn't earn enough for a happy meal, he is right, you are wrong.

[crfranchises1]

@Joeys48 its not 3% monthly, its 3%annually, so your $30 would only be $2.5 a month. And that will no buy you a happy meal.

[Joeys48]

Dave Ramsey is an annoying exaggerator. He's met with thousands of millionaires? What a load of crap! If Ramsey was king, he would not trust that any of his subjects were smart enough or disciplined enough to handle the responsibilities associated with using a credit card. If you lack impulse control, cut your cards up but many of us don't need a bag of wind like this blowhard telling us what to do and if we don't, we are stupid!.

[peterhansenism]

@noraklagrangian While that may be true, I would still never recommend a credit card to any one as the system is now. Buy stuff from reliable sources

[noraklagrangian]

credit cards are safer than debit cards and cash. if you buy something dodgy, you can get your money back more easily.

[FoolishInTheEnd]

In my opinion, just dont use the credit card if you dont have the mone to pay it off right away. just use a credit card like cash.

[RenRay26]

Oh I forgot one thing. I also like to use my card to make gas purchases and NOT have to go inside. haha It is maybe lazy of me but I want to make it easy

[RenRay26]

I add a credit to my Chase card once each month and I pay all gasoline and food and eating out, ect with the credit. So, I can track it and don't go over my amount that is in there. It helps see ALL my spending. and each month I start over again with the same amount. It is interesting to see WHAT I am spending and I check often to see WHAT I have spent. Its helps me??

[vacationboyvideos]

im not sure if credit cards are so bad....you can alwasy build your credit line...pay off the amount each month and then one day max out the cards and file for bankrupty! you dont pay nothign or little for a lot of fun things and then file for bankrupcty! hello!

[clayfield1]

I know one millionaire personally and he is a home builder. He buys all of his material on a AMEX card and pays the balance in full each month. He told me AMEX gave him over 10k in perks for using the card. I have redeemed over $500 this year in Discover card points.

[lsnows]

Ramsey is my own persoanl guru, financial shaman and hoxha. He is more than just 'the man.'

[annaslakersgirl]

yesterday I was at a Burger King and I tried using a credit card, to my surprise the credit card machine wasn't working and I had to pay with cash. It's like Dave Ramsey and God coincided to stop me from going further in to credit card debt.

[Patrickthedutch]

@annaslakersgirl

take a big scissor and cut your cards in two, call them up and ask if they can lower your limits, make a overview from ALL your costs and income, and last save money monthly never ever save too much, you will only withdraw it 4 days later. Just save a little amount, what you won't notice, like 50 dollars orso, or maybe 30. Save for things what you like to buy, a tv, a car, etc. Don't buy if you dont have any money,

i was there before, good luck !

[Patrickthedutch]

@annaslakersgirl

create 2 different saving accounts, one for a rainy day, for when disaster strike, like your car broke down, or you need a plummer etc. and the 2nd one, for things you like to buy, a new tv, a new couch etc.

In the beginning it will take a lot of discipline not touching the money, but once you have put some money aside, or bought things you for the first time saved for, you will feel really good about yourself, and you will do better.

Like i said before i saved for the tshirt

[steals2005]

Credit card companies chanrge busnesses for the charge. Most gas stations and some stores will have a lower price for cash than using a credit card. I Save more than 120 per year using cash to buy gas than a little 1% cash back with a max payout limit.

[tbaarr]

@steals2005 hey if the stations in your area do that then you are correct for the gas purchase only. That still leaves the groceries and phone and electric and cell and all the other bills ..not to mention fast food which dont GIVE A CASH DISCOUNT. And if $120 is something you can afford to blow off BE MY GUEST. I bet you voted for bushpunk both times and mccain too. BECAUSE you choose to ignore the fact that their repub party has caused 2 bubble burst recessions in a row

[AirLockBelsen]

Your an idiot Dave.......Alot of MILLIONAIRES or wealthy Businessman take LOANS (Credit) in Business to make more money and to be honest if your using your credit card to study or better yourself day by day then whats the problem !!??

Dave is another Egotistic Rambling busy body who believes his views are superior to everyone elses, i stress to anyone with a credit card invest in it wisely build a good credit rating, be responsible and do the things you want to do !

[steals2005]

@AirLockBelsen Funny AirlockBelsen. A self made millionaires an idiot. Better than you I bet. Or wait are you Opera. Alot of millionaires take loans. Alot? all the ones you hang with at the country club. lol what a joke you are.

[tbaarr]

@steals2005 ya steals we all know what a joke you are. repub loser joke

[AirLockBelsen]

Steals2005 you seem to issues with credit, which is strange as the only reason why the system collapsed in the first place was due to lack of credit.......So when you understand that loans and credit create money supply which is common economic theory then you will understand the whole system is a debt ! So whats your point when you insult people for seemingly no reason ?

[tbaarr]

@AirLockBelsen he a repunk .he stupidly supports a party that has given us a bubble burst recession both times that they were in office over 6 years and yet he still supports them.. he is either stupid or just [pissed off cause he is to arrogant to admit he is wrong

[AirLockBelsen]

@steals2005 And yes he is an idiot just like you, who will disagree because it suits THE EGO at the time of writing ! The majority of self made millionaires use credit, when you invest in real estate like this guy, do you think he used peanuts or bank notes.

What do you think investors do to begin with !

[Slides2006]

You can use credit cards if you pay them off completely each month. If you don't, then its only your fault.

[cyprusfilms]

shaycarl sent us!

[RunChewToyRun]

Shay sent me!

[danklucas2]

@RunChewToyRun shut up, he sent a lot of us

[SchnuffelLiebe]

Glad i dont have a creditcard xD They only bring pain and sufferings :)

[TwixRawr]

Thumbs up if shaycarl sent you!

[AppelMak]

@kianatard I guess his "you spend more with plastic" rule still applies

[alekessmylie]

I think that's a paradox :P

[eduarrdo839]

Thats USA for you "the best economics sistem" ;D

[YoLeanneYo]

haha shaytards brought me here! :)

[papaellison]

Your a moron. It helps your credit to keep your card active and shows a great payment history for your credit. If you close you account your credit score decreases.

[ajbee22]

shay is reallllly passionate about not using credit cards

[UK1774]

I don't know about the USA but in the UK there is protection on the purchase using a credit card you don't get paying with cash or a debit card

[MRSTAYLORLAUTNER0]

THUMBS UP IF SHAYTARDS BROUGHT YU HERE

[AirLockBelsen]

Dave you really are an idiot........Credit Cards are useful everyone BUT THINK before you use them they have got me out of hot water many a time and also allowed to have things which i wanted now rather than later which to be fair i dont mind paying a little extra to have something if someone has loaned me the cash as a thankyou !!!

[tbaarr]

@AirLockBelsen well said brother

[tbaarr]

@AirLockBelsen check out my vid to learn how to make 120 a year by paying you bills with your 1% cashback credit card

[steals2005]

@tbaarr WOW $120

[tbaarr]

@steals2005 LIKE I said earlier loser. If you can blow off $120 be my guest. this post is for Intelligent people who like making free money . not morans like you who supported losers like Bushpunk and McCain

[steals2005]

@AirLockBelsen I want now, Like a little baby in the store with mommy. Be an adult, save for what you want.

[AirLockBelsen]

@steals2005 ?! I do save but why hit your savings so hard isnt that just stupid

[tbaarr]

hey dave are you going to post my videos . They are factual truth based on my 30 plus years using credit cards. Are you afraid of a truth you cant poke holes in. ARE you afraid of the fact that a credit card company can never lose your payment or charge a fee if you use your banks free online bill pay because that makes it a bank to bank issue and you are not responsible for bank to bank errors. Credit cards are not a scam on the middle class. they are a tool for the diligent person

[tbaarr]

you can make 120 a year by paying your bills with a credit card dave ..thats a heck of alot of happy meals and its tax free..because a 1% cashback bonus is considered a coupon ie IT AINT taxable see my video

[the13thof12]

@tbaarr Obsess much?

[tbaarr]

@the13thof12 na dude i just believe in showing the truth , but if the truth violates your conservative thinking,,you will of course attack it ..because you are scared. I bet you are too afraid of your lack of due diligence to even try paying your bills with a 1% cashback credit card and paying that bill off 10 days before its due date. thus you cost yourself 10 bucks a month per 1000 bucks in bills or 120 a year. man 100 bucks is real money to me. and most intelligent people like free money too

[ir10031981]

I used to think there's nothing wrong with using a credit card if you're gonna pay the whole balance to the credit card company on time. I have done that often, so I'm guilty. Since I started listening to Dave, I've cut back on the plastic. Using the VISA credit card less. I still live within my means. I'm conservative and weird.

[tbaarr]

@ir10031981 does your visa pay 1% cashback.. why not pay all your bills each month and leave the cash in the bank. then pay the bill in full when it comes because your cash is sitting in the bank ready to pay the bill..Then for each 1000 you charge your 1% card will pay you 10 dollars and its acoupon refund so it aint taxable

[ratliff2006]

Dave Ramsey talks a big game but remember he has made a fortune off the poor. Isn't he just as bad as the banks?

[tbaarr]

@ratliff2006 he is worse check out my videos that refute his position for not using credit cards. I posted them for free.something dave ramsey would never do. I wonder if he has the guts to publish my video responses

[FlyLady13]

I love Dave Ramsey, I wonder if he is married hehehe.

[ir10031981]

@FlyLady13 he is, ever heard of Sharon?

[tbaarr]

ok dave why wont your comments work

[tbaarr]

hey dave I will take 150-200 a year paid to me by simply paying my bills of 1500-2000 with my 1% cashback credit card every month . The fact that most of the people that listen to you are to afraid to be responsible is truely sad. I am Tbaarr ..feel free to google me..I challenge any response you have on credit cards..

RESPONSIBLE people use credit cards ..they improve their credit score by donig so and the pay no interest or late fees

[wahabakbar]

True!!!! Thanks DAVE!

[ir10031981]

Dave Ramsey is smart, no wonder he wears glasses, so he looks smart too. LOL!

[GuerrillaSauce]

Here in the UK when you buy something on credit with a value of £100 to £30,000 the lender is equally responsible as the seller for any fault with or non-delivery of the goods/service bought. This guarantees a refund even if the seller goes bust, refuses to pay up etc. They're also obligated to refund any money that is fraudulently spent on your account.

So; always use a credit card for online purchases and goods or services costing over £100 and then pay the balance off immediately.

[GuerrillaSauce]

Actually, you don't even have to charge the whole amount to the credit card either - you can pay £1 on the card and the rest in cash or any other means and still be protected for the full sale value... just in case holding a large balance on the card makes you nervous.

I still prefer to pay it all on the card for convenience and security (don't want to be carrying large amounts of cash - no recourse if its lost or stolen like there is with a credit card).

[GuerrillaSauce]

Visa do offer a very similar deal on their Debit cards (which most banks are switching to) - but being an idiot I didn't keep my copy of the T&Cs (and haven't been able to find a copy online) and as it currently isn't legally required I'm guessing they can change those conditions (not that I know what they are) as and when they want to.

Just another thing to look into.

[raunchbear]

No, only banks would collapse. The money they earn on you would be in your pocket. You wouldn't get big things right away, but you'd end up with more in the end.

[MegaWeagle]

In the spirit of attacking Obama, embracing the party more favorable to empowering credit card companies. Some people lose sight of whats important. That's leaving the American people to be free to make there own choices and do with there money as they please. Liberals and even some republicans are taking our freedoms at every turn you choose! Life, liberty and the pursuit of happiness and bigger scum bucket credit card companies. Or Less freedom, bigger government, higher taxes. Choice is yours

[roberts11000]

Its hard to understand what happened to Ramsey. cause at one time he was critical of Corporations like Credit Card Companies and believed in legislation that looked out for the consumer and criticized that one piece of legislation passed by the Republican Controlled Congress he called an aboslute scam. That bill every republican voted for in the Senate.Yet now in the spirit of attacking Obama he is embracing the party that is more favorable to empowering the Credit Card Companies to rip you off.

[roberts11000]

The Credit Card Bill that Dave Ramsey had criticized passed a number of years ago which Dave called a scam, AND EVERY REPUBLICAN VOTED FOR, a significant number of DEMOCRATS VOTED AGAINST.well now Dave wants you voting for the same people that passed that bill. The old Dave Ramsey or at least the one on the radio back then said that fifty five percent of families who get in debt ,get that way due to health care costs, and that that bill was a giveaway to the credit companies but now hes for GOP/

[IBMeddling]

People should use cash for political reasons also. Use it or loose it. There is a toll road in Texas that won't even accept cash.- since most people had the "i pass" in their car windshield, most people didn't even care about the no cash policy. The same thing could happen in major stores accross the country if most people don't use cash.

[800504]

but the system is forcing people into using credit, you wanna buy a car, and you're NOT a millionaire who make the payment in full, then you have to finance it, well, to do that you need a good credit, if you dont, ok they tell you to go out there and spend more so you can build up your credit. American life is almost just about building up credit if you're middle class, no car no house if you dont start your life on that plastic.Its how you use that plastic makes the difference.

[raunchbear]

And that's what's wrong with America

[MrGlennbeckfan]

Credit cards, in my decidedly unprofessional opinion, are basically an iou to... lets say the bank, credit cards are an iou what the price is, plus a certain percentage more. Like he says, when people have a credit card, there seems to be some sort of inherent genetical disorder to spend wildly.

[deltapunk21]

credit cards are not scams but valuable services. They do not force people to buy things and not pay them back or get themselves in a pinch in fact CREDIT CARD COMPANIES LIKE ALL COMPANIES WANT A PROFIT, and reckless debt means no profit aka no paying them back the amount you stole from them, plus intrest to keep up with inflation and sure as hell not tacked on little bit of a few percents to collect any profit off of it.

[firestarter123456]

Iv earned $1000 back in cashback and rewards so far this year by using a credit card and have never paid any interest, credit cards can be a very good thing if used wisely.

[believerintheword]

Wow there are alot of people who just cant let go of their credit cards. I dont have any Credit card debt. Guess where im going? Maui with my Wife, ALL CASH BABY!! and I will owe nothing to noone when I get back. Have fun with those chains. I'm Free!!!

[tbaarr]

@believerintheword hey believer if you used a 1% cashback credit card to go to maui and left your cash in the bank you not only would be able to get paid to use that card, you also get to keep the interest. Last time I went to maui it cost me 3k for 3 days cause I like comfort . I got 30 bucks cashback and 45 days interst in my bank account because I changed my billing date a month before my trip so my card cycled its bill 2 days before we left. ie I had an empty card and no bill that month

[tbaarr]

@tbaarr when i got back I simply looked over the bill which gave me an accurate accounting of all money spent .and then I paid it in full .What freedom I had the cash to pay for my vacation saved and I got paid to spend money on my vacation. And I had a free accounting of all my expenses. without needing to keep a bag of receipts. Now thats what I call freedom .Getting paid to have fun. its the ultimate freedom. OH did you worry about being robbed of your cash. I didn't have any worries

[MatthewTS22]

@believerintheword So for a teen as myself who is starting out in the world, what should I do instead of using credit cards?

[marvin83cole]

@MatthewTS22 if you are short of money what make you think you will be able to repay your credit card bills, just learn to live with the money you have each month till you are able to but a bit away each month then you will have savings to buy the things you want

[MatthewTS22]

@marvin83cole So basically stay away from credit cards completely?

[marvin83cole]

@MatthewTS22 i wish i had done :( instead now im about 10.000 in debt

[musicgeek3]

Read the book MAXED OUT and you will see how even if you have the best record of paying off your cards always on time always in full they WILL try to mess it up for you @ some point CUT UP your credit cards ! Be done with DEBT forever!

[badmudda]

ive never even have had a credit card, i guess im just too retarded to figure out why borrowing money and having to pay it back with interest instead of just using debit is a good thing.

[handsandleet]

my mom uses an american airlines credit card (some type of airline not really sure about which one)and she gets free airline tickets after a certain amount of purchases have been made with the card. im not sure if they do that kind of stuff with debit cards. if they dont i guess that's one thing a credit card is good for

[averageworkinggal]

The reason why you use a credit card over a debit card is TILA protection on purchases over $50 with the credit card.

If the vendor stiffs you on a debit card purchase, you're stiffed.

Not with a credit card.

You get to reverse the charge.

[rappilot]

Amen Dave! We have been living without a CC for over 2 1/2 years now ... Oh my .. we are still LIVING and Living LIKE NO ONE ELSE!!! THANKS!

[cymbeli]

paying bills and living beneath your means is not the solve it all though. You need a CC to fly, buy flowers, reserve a car well you can put a substancial deposti down for that..I've done it but so many things in this regard...I only use my debit card and have no more credit cards. I'm paying off one that I can't use anymore but I'm making progress. I just sucks that there is record of things I buy. This is why grocery stores have savers cards. They keep tabs on you so they can size you up.

[RealAndTruth]

People need to re-build Credit. America is in a position of needing to re-build credit.

[Salena52]

What's so great about credit?

[Markisagoodboy]

at the moment I am spending credit cards on credit cards.

[Salena52]

Ouch. You're going into debt in a handbasket. If anyone needs to listen to Dave Ramsey you should really concider.

[altha2008]

I got 20 credit cars with $5,000 on each one do not owe nothing on them

got $125,000 in cds still have them with people who investing mutual funds lost everything

got a line of credit on persoanl resident up to $250,000

so anything around $500,000 I can get

DAVE just complines about Credit cards because his wife was called and he was made a fool of for not paying his credit card bills

pay your credit cards bills on line you will not have to worry about it being late

[fatdaddync]

I tend to disagree with Dave on this one. There are consumer protections built into credit card purchases that don't exist with checking account debit cards (Visa check, etc). He is right about the tend to "upsale" with credit cards though. I've caught myself wanting to spend more with plastic because I knew the money wasn't coming right out of my checking account.

[grekridea]

You can't rely on that crap my friend. It's worthless. Those c.c. companies will do anything they can to screw you. It's revolting. They'll find ways that make it seem legal on the outside but are illegal and at the very least unethical.

[altha2008]

if you will pay your bills you will not have to worry about Credit cards

[grekridea]

Yeah and when you rack up debt and forget to pay a bill and get the high interest rate good luck

[Sonnybuckfarms]

If your debit card has a Visa or a MC logo on it, its protected under the EXACT same consumer protection laws as your precious credit cards. Ten bucks says a creditor told you that.

I'm done with credit anything!

I'm done with being a slave to the lender!

[jedmarum]

I love Dave Ramsey! I wish I'd heard him 25 years ago.

[stonecoldjason]

I love my credit cards I got 20 credit cards with $5,000 limit on each one $100,000 limit

brought an investment property with it held on the property for 6 months made $25,000

DAVE got into trouble living on more then he makes

[cooksonkid]

And so will you stonecold. You got away with something. Talk to me in ten years.

[flwrgrl41]

You go Dave! You are right!

[juleeandmichael]

amen...power to the people!!!

[Hern76]

that is so true ....if only people would stop & think @ .