Why I'll Never Use a Credit Card

Ramsey Solutions Privacy Policy

[traviselrod]

I am 41 years old and have never once used a credit card. Best decision I’ve made financially.

[Jen-qdqc]

I’m a responsible adult and I will always have a credit card. You can still budget and use a credit card.

[kevinlam]

I have been using credit cards since I was 18. Paid them off fully every month and have never paid a dime in interest and have made thousands off cash back rewards. By the time I was 25 I had a credit score in the high 700's, bought a house with 2.5% fixed interest. Not everyone can do what I do but there are many that can.

[Techreux]

Rachel, don't forget that credit card companies not only make money off of fees and interest, but off of transaction charges the seller of the product you are buying has to pay to use their services.. which is why you see some vendors offer discounts for cash payments. As an online vendor, more than once I lost money on a sale - due to transaction fees.. which all get passed on to the consumer.. even the cash buyers have to subsidize the added cost in most cases. Thanks for posting this video!

[lindsaysimplified]

I can attest to spending more (even if you pay it off every month). When we’ve done experiments on the months we only use cash/debit cards we save over 50% more. I’m way less likely to buy something if I know it’s coming directly out of my account. I’ve also found that we come way under budget in categories when we only use cash/debit (hence saving way more). The psychological effect is real.

[asavannah]

I'm in my Forties and my husband and I also don't have credit cards. If we don't have the money, we can't buy it.

[treidkr]

I totally understand why some people should not use credit cards. If you aren’t a responsible spender, it’s a dangerous game. However, I am extremely responsible with my money, & I use a credit card for purchases I would have made anyway. I use different credit cards that get me more cash back depending on the type of store I’m buying from. For example, a certain card at grocery stores because I get 4% cash back, or I use a certain gas station for 3% cash back, etc. I pay then off in full every month. I’ve gotten thousands of dollars in cash back over the years. It just takes discipline, but I realize a lot of people don’t have that discipline & use them irresponsibly. It all depends on the person.

[anthonyb]

“The system being gross” really resonated with me

[tcgtpl]

Here’s an idea. You can adhere to the Ramsey Solutions Team’s principles & use credit cards responsibly. Just because others are irresponsible doesn’t automatically mean you have to be irresponsible as well.

[PhilipMarcYT]

I too used to think "I'll use this credit card for an emergency" but then what about the balance on the CC and the interest, who pays it? I do. It's better to put money aside and use _THAT_ as an emergency fund.

My family is the type that uses a ton of credit cards, get themselves into debts, and then don't pay them or pay them when CC calls them or sends them letters. I'm debt-free and plan on being that way for as long as possible.

Anyway, good advice, Cruze, and you have good intentions, but everyone is different so some will use CC responsibly and others irresponsibly. So.. yeah.

[CanadianWealth]

Just because other people are bad with their money, doesn't mean you should be too. If you are responsible with your credit, keep using it, having a higher score will be useful at some point in life, but you don't know when until that time comes.

[robinheminger]

My debit card was cloned after I used it at a gas station. My bank responded quickly and I did not incur any penalties, but I was lucky. I choose not to use a debit card to avoid this. I use my credit card and pay it off twice a month. Be responsible with your spending no matter what payment method you use.

[joeylee]

Always keep multiple forms of payments. If your debit card is compromised, you need a different form of payment. Also you can keep a budget and use a credit card. Not that difficult.

[PuzS]

This is an amazing message. I hadn’t thought of this before! Huge thank you! I get caught up in the dang rewards. Please continue talking about this topic. And maybe the steps to take to break up with our credit card, and the steps to take to start budget and using the Debit card instead. So inspiring.

[PC-uhhk]

I've paid cash for all my purchases for over 20 years and never felt like I needed credit. I even saved enough to buy a brand new Ford F-150 Lariat with cash and the sales person looked at me like I had two heads.

[tokyothecat]

We have people like Robert Kiyosaki who encourage debt; then you have people like Dave Ramsey who avoid it at all costs (2 extremests), its important to learn the benefits if both sides. What if, for example, you want to purchase a forplex to generate wealth, but you can only afford 20% of it? What if you wait to purchase your dream home but you're too afraid to finance so you decide to wait to buy it in full only to realize that the house that you waited for has appreciated 1.5-2x its value, now costing you more.

[geogriapeach]

Debt free. No credit card. Just Mortage.

[jerrypissonme]

I bought my last vehicle with cash and not with their line of credit. The car dealer looked at me like I was from Mars. I told him I'm paying with cash so take my money or the lot next door will. He took it.

[pjlacey]

Here is an idea for a video. Give us a behind the scenes tour of Ramsey Solutions. Many of us will never get there.

[JA-zhxi]

I only use credit cards. As someone who has had their checking account hacked - trust me you don’t want that to happen. I use credit cards and pay them off weekly. Haven’t had a monthly balance in 20 years.