Millionaire Reacts To: Insane Credit Card TikToks

About this episode:
Is it just me, or are more and more people taking crazy leaps in logic to make their credit card habits make sense? Check out these wild examples and decide for yourself whether credit cards are tanking our collective IQ.

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[TheDeanosaurus]

BIG L on the "pay it" mom for ragging on your kid for not knowing something YOU SHOULD HAVE TAUGHT THEM. You played yourself.

[JaySmith-pvmw]

I actually don't know the interest rates on my credit cards because I pay them off each month. I don't pay interest.

[robertl]

I've carried an Amex card for over 20 years and it's PAID IN FULL every month.

[lotsaspaghetticodejr.]

I just paid off my first credit card last night. Had a balance of $3, 500 at 28.99%

I threw $350 a week at it for 10 weeks

Now I have one more card with $7, 500

Time to grind that one down next

[Patrick-ptyd]

This is me... unable to pay off the credit card debt at the end of the month. But I'm learning and not charging anymore... focused on saving emergency fund and then paying off debt!!

[jackiekjono]

There are a frighteningly large number of people who don't understand the basics of how money works. I once had a customer who paid with a check at one of our locations. Since we don't typically accept checks at our locations, the check had to be sent to our main office and went missing in transit. I was expecting the customer to be frustrated by this but, her level of upset was through the roof. And after listening to her rant for about 3 minutes, it finally dawned on me that she thought that just because she had written the check, that the money was already gone from her account. I had to calm her down enough to explain that the money is still in her account as long as no one cashes the check. I explained what a stop payment was and how she could request one if she felt it necessary and I offered to reimburse her for the stop payment charge at the bank. She had no idea how that worked.

[Aren-Tibbs]

I am among the half of Americans who don't know what my credit card interest rate is.
I pay in full every month to avoid paying interest. Knowing how much interest I'm not paying is a waste of brain cells.

[davidharvell]

I have a middle ground position on this TBH. I think you're right when it comes to the risk and people getting into bad situations to get rewards. At the same time, I use credit cards for everything. BUT I never make any purchase that I don't have the money for (not in the future, in the bank now) - I track everything. I never buy anything just to get points, but I happily collect points on things I would buy anyway. I don't think I'm getting rich off of points, but it does help me maximise the efficiency of my money. Now, I agree that if you are not prepared to be VERY disciplined, you're better off to cut them up.

[caseymyhro]

This is the one topic that I disagree with. The Ramsey Show crew act like EVERYONE is irresponsible with credit cards. If I have to pay for necessities like groceries, why would I use cash when I can get 3-5% cash back on a credit card? I pay off all of my credit cards every month and never carry a balance. I don't spend more just because I use a credit card. Not using a credit card on necessities is like throwing money away. Not everyone is irresponsible with credit cards.

[kirkfriend]

I'm from the UK purchased "The total money makeover" by Dave about 4 years ago and lived by it ever since. I am 34 and would have paid off my house in 3 more years.

[duanewolfe]

6:38 This conversation takes me back to the movie Dumb and dumber when Jim Carrey has the duffle bag full of IOU's including the one for the Lamborghini lol.

[Krinbo]

George knows what we want: him reacting to idiots on the internet.

[javaskull]

TLDR: “I got no cash, so I don’t have a cash flow problem.” Yikes.

[tcgtpl]

That $50k spend to get a $750 ticket for free example is using rookie numbers. Besides, that’s money I had to spend to live anyways, like utilities, gas, groceries, etc. which I can get better than 1 pt/mile per dollar spent anyways. If you’re saying people can’t be responsible with using credit cards then you also better be against using coupons & businesses having sales because people can’t control their spending with those either.

[spencer]

This is where Caleb Hammer has it right: There ARE some people who are credit card people (i.e. using a credit card as a debit card and paying it off completely at least monthly). I haven't paid credit card interest in nearly a decade - since becoming single again - and I'm taking both of my adult children on bucket list vacation this year with airfare and hotel completely covered by points! I only use my card for necessities and planned purchases within my budget.

[MrMoonDollar]

That first dude makes about as much sense as burning cash cause oil heating prices are high.

[strnashtygaming]

I will never understand these "finance experts" saying that using your credit card for purchases you were already going to make (like gas, groceries, and some bills) is a bad thing. If you have the cash and paid the balance in full at the end of the month you're making money on the cash back. Im not talking about making additional purchases, but expenses that were planned and budgeted for. No interest paid.

[hockeyhalod]

The Money Guy would say, "Don't get caught swimmin' Nekkid"

[PleaseEnlightenMe]

If you are disciplined and spend only what you can afford you can get free flights without debt by paying off your card monthly. Where people get in trouble is not staying disciplined and overspending

[jeffreymartin]

It's like walking past the slot machines and table games at the casino to get to the free food. Some people can get the food without playing the game, but a lot of people can't.