Credit vs Debit Cards: Which One Should You Use?

Video From ►“This Keeps 99% Of People Poor!” (From Broke To Millionaire)

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[elizabethadahl]

I’ve been an avid credit card user since I got my first card 11 years ago. I’ve never paid interest, always paid in full. However, I will say that credit cards make you feel like you have more money than you actually do and there have been months, especially when my income was lower, that I struggled to pay the full balance. I always paid it because I didn’t want to pay 25% interest, but I spent more than I could afford tbh. I’ve been deeply looking into my financial habits lately and it has made me decide to use the credit cards much less. Only for online purchases and once I make the purchase I pay the credit card off within a week. I don’t put it on the card if I don’t have it in the bank. Don’t borrow money from your future paycheck!

[pey]

"I don't think I would've been a net worth millionaire today if I still had my credit card " - George's comment here is absolutely true because Dave would've never hired him or kicked him out

[benjaminhough]

I believe BOTH guys are correct. Graham is correct, if you are diligent, if you are disciplined, then yes, you can make tons of money with credit cards. BUT, George is also correct, EVERYONE, thinks they can be that person, but the data proves that MOST people cannot be that person. I believed I can be that person and I have years of credit card use to prove it, BUT I found it freeing to stop worrying about it. I buy something, I own it. No one can take that from me, it’s mine. The biggest reason I left credit cards was due to the predatory nature of the industry. My rewards were paid on the backs of debt.

[docsays]

Credit cards are the safest method of payment, plain & simple. Zero liability, fraud protection, extended warranty, price protection. etc. Yes, you can get some of that with a debit card, but its still your money, not the banks money.

[jeffscalfano]

Pay it in full every month... Graham is right. Work the banks don't let them work you.

[therealjonasmancuso]

It's like saying if you smoke cigs you might get lung cancer. Will everyone that smokes get lung cancer? No. But is a huge risk you take. Using CC's can lead to financial cancer.

[Mishkafofer]

I am CPA and don't bother credit cards and their rewards. All that dopamine rush for cashbacks look silly to me. I don't even want to read cc rewards program papers.

[itsagreatday]

It's really NOT hard to figure out if you are that guy who can control yourself. If you never carry a balance and pay zero in interest, you are fine. If you pay anything in interest, then go checkout Dave Ramsey's plan because that is the audience they are great for. I will say though, someone who is responsible and pays their credit cards would never make it on the air since all calls are heavily screened before they ever make it on air so I totally believe George when he says that's all he hears from

[davidfountain]

I use a credit card and payoff the balance every month (I use cards with rewards). One of the main reasons I use credit cards rather than debit cards is because of the number being stolen. Even though I may get it back eventually, I’d hate for my bank account to get cleaned out. I’ve had charges on my credit cards before that weren’t mine and it was easily fixed. Enjoy y’alls show!!

[tcgtpl]

A Ramsey Solutions Team member admitting it’s possible for responsible credit card usage? I hope Papa Dave never sees this.

[thecapone]

I just want to say that I love how calm and positive this interaction is. You have these guys who have differing opinions on finance and discipline, yet they don’t resort to name calling, raising voices, etc. They’re level headed and don’t talk over each other. The bit about confirmation bias at 5:15 was very well said. It’s so enlightening that people can be aware of their biases and own up to it.
Very good conversation on display here.

[GSR]

I understand both sides. It makes sense for Ramsey to be completely anti-credit card so there's no ifs or buts.
I'm a strong believer in credit cards if you only spend what you can afford and you pay your CC off every money. I was late only with one payment over the twenty years I've had a credit card. That one payment was in my first year.

This was an incredibly civil conversation with two different views on credit cards. 👏🏻👏🏻 5:54 5:56

[es]

Caleb Hammer says it best to those who cannot manage their finances… “we are not credit card people!”

[jpknowledge]

Credit Cards are absolutely amazing if used responsibly. The problem is, most people are not educated on how to properly use credit cards. If you take just a little bit of time to study how they work, you'll understand how lucrative they can be for the amount of work required.
I understand why the Ramsey crew doesn't want thier students using credit cards, and it comes done to disapline. Many of them are in debt because of a lack of disapline. For those who are disapline, use credit cards just like they are debt cards, pay them off immediately, and then use the rewards to either invest or travel the world for free!

[nigelmckain]

If I have a $500 expense I was going to use cash/debt to pay it off, why not use the credit card; gain the points/cash back, then use that same $500 towards paying the bill. It's that simple, credit cards also come with insurance benefits. How about we teach how to be more responsible than to avoid the real issue. Everyone can do it, knowledge is power. Let's be better teachers.

[rogerfarley]

Both are correct, but talking about 2 different consumers. Consumers who have grown the resources almost NEED to add a layer of protection by paying their bills via credit card and paying their balance at the end of the month, with NO debit cards on their bank accounts as they are a constant target of scammers and their info is constantly getting stolen. Can't tell you how many times i have had to cancel a debit card, but have never canceled a credit card.

[angied]

Sorry but I side with George on this. Credit cards and spending are super addictive for most. Kind of like cigarettes... Most people will get addicted, but there are some who don't. If you're part of the small subset of people who won't over spend when you have a credit card... Great-use that and collect your rewards. But most people will get addicted and will experience financial pain from it. Credit card companies are banking on people to get addicted to spending... They wouldn't just provide all of this to be nice. They're betting that you'll over spend..and are usually correct on their bet. Although Graham is correct on great benefits... He's wrong in assuming that most people are like him and be responsible with credit cards.

[SexyStang]

I Love my Debit only buy what I terrible with Cash, I HATE carrying it, I'm compelled to empty my wallet, Just the way I But Debit Card is a different mentality for me, I Know it's plugged into my bank account, money I've worked for, so I'm just instantly frugal. When it's Cash, I just feel like Whatever, Cash is meant to spend....different thought process for me.

[anthonyjames]

Watching George give financial advice to Graham is hilarious.

[benchoflemons]

Recommending debit cards and high fee active investments is what turns Dave Ramsey from decent advice into total clown world status