Everyone Should Get Rid Of Credit Cards? I'm Responsible With Them!

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[Zach_A]

The credit card vs cash argument has always felt opposite for me. When I pay cash it doesn't leave my bank account but when I look at my statement and see that money was taken out.... that's what hurts me.

[jhbigler]

Dave's logic is faulty.


"You know how much you get back for $100k of expenditures? $1k. That's not wealth building"
Of course it isn't, but it's $1k more purchasing ability than if you simply stuck with a debit card. Nobody is claiming to be able to get rich off of credit card awards, dude.

[Kimber]

Oh man the credit card company that gives me 5% cash back just tricked me into buying gas for my car so I can get to work! No wonder they have nicer buildings than me. Darn it

[matthewtrimble]

The reason he’s never met any millionaires who have said “Hey, I’ve made all my money with airline miles, ” is because NO ONE IS SAYING THAT. Even people who can aggressively take advantage of those 5% or 6% categories aren’t building wealth that way. The points and cash back are the icing on the cake to money you’re already spending anyway, nothing more.

I could stay warm for the next 17 years by fueling a fire with a straw man that big.

[sunset]

IF YOU ARE AN OVERSPENDER, YOU'LL FIND A WAY
NO MATTER WHAT THE PAYMENT TYPE

[rebeccastolberg]

I'm weird. I feel like I'm getting away with something when I use cash and throw away the receipt. No one will know I spent a whole $12 on M&Ms or a pair of shoes I may never wear. Heck, I'll even forget about it in a couple days.
Debit card keeps a record of my financial wrongs. Credit card even more so because it's like paying for everything twice, once at the store, second though mobile banking. It's not more friction, but it is more guilt.

[masterbrice]

The problem is the credit is a huge deal in the United States. If you have poor or no credit you essential pay more for property, goods, and services that you need.

[mihai]

Dave's whole argument of overspending is cash vs card. The exact same thing applies to debit cards but at the end he still suggests a debit card.

[RyanKJohns]

Dave often deflects with the claim that no millionaires made their money through credit card points. Nobody is making that argument. I’m sure plenty millionaires enjoy credit card perks and are interested in keeping their credit score high while being responsible with their lines of credit.

[vqblicj]

The whole “cash triggers pain” thing is for old people accustomed to using cash. I didn’t grow up using cash so using plastic is the same thing for me. My pain censor is not my form of payment but rather the price or bill of the product or service.

[davidrg]

Same old argument here that falls flat on its face

[jennifertackett]

I have a cash-back card, but I'm not using it to "create wealth". I use it for autopay on many of my monthly bills. Electric, phone, etc. gets paid this way. I then use the cash-back to pay towards the CC bill. It's a way for me to squeeze a bit more out of my money.

I get what DR is saying, but he's awfully rude and judgmental when discussing this topic.

[hollyb]

Self control is the key. If you don’t have it, stay away from credit cards. If you do have it, credit cards are not an enemy

[theawesomer]

I disagree here. I have to have a credit card because my employer requires I have one. All my business expenses I use it for get reimbursed. I get a statement each month with all the expenses and I submit to my work, you don't get a statement with cash.

In the ten years I've had this credit card, I've never once spent it on personal items for myself.

Self control is the issue here, not credit cards.

[nickbachner]

Dave again with his one size fits all approach

[JVIPER]

Dave's logic is sound. From his perspective, if you're trying to help people get out of debt, you can't give them ANY wiggle room to come up with excuses as to why they can still have a credit card. If they're already in debt, its indicative of not being able to handle credit cards. So he can't say, "Well, if you're careful...." because they won't be and people will blow it.

As for the people who ARE careful with their credit cards and debt, they have to understand that they're in the minority. Only 1/3 of people pay off their credit cards every month. And on average, Americans have $5, 000 in credit card debt each. It can be a dangerous game. Someone could be responsible for years, and then suddenly, an "emergency" comes up and it can't be paid off in full.

[hollyb]

I don’t agree with Dave’s blanket generalization regarding credit cards. I only buy what I need, stick to my budget, pay it off every month and use the cash back for vacation

[medviation]

They give you back your debit card after your purchase too right?

[TheBlackRazgriz]

Maybe ccs aren’t good for the folks that call into your show most of the time Dave but for the responsible adult credits are a massive tool useful for all sorts of things

[LittleMissRockChalk]

While I respect Dave's opinion, I find it hard to believe that any person who isn't already up to their eyeballs in debt has ever said they would get rich because of rewards.