Have you heard of Dave Ramsey- Can you "live" without Credit Card ?
Mar 27, 2011 at 12:09 AM Thread Starter Post #1 of 19

snapple10

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[size=small]Well, I do listen to him from time to time. But there is no way I am letting go of my credit cards.[/size]
[size=small]He believes in no credit card and no debt just debit card and Cash only.[/size]
[size=small] So, what will do you if your credit cards are gone tomorrow?[/size]
 
Mar 27, 2011 at 12:15 AM Post #2 of 19

El_Doug

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Considering I only use credit cards for the convenience, and always pay them off, I'd say that it would be very damned annoying using cash only.  I hate having a wallet stuffed with cash, especially a ton of small bills and change at the end of the day.  The lack of security that cash presents when compared with a credit card (in terms of theft) is also a major downside. 
 
Sounds like this Ramsey fella is just spewing shocking ideas in order to sell something
 
Mar 27, 2011 at 12:27 AM Post #3 of 19

snapple10

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Well, he is selling a lot, I must say. Got a few millions to show for it per him
I just can not imagine walking around without CC.
I have this image, 30 dgrees below zero( gets colder here sometimes) Minnesota weather and I have to go inside  to pay for gas, not happening
 
Mar 27, 2011 at 12:35 AM Post #4 of 19

rawrster

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I may be one of the few in here that does not own a credit card. I personally believe in spending only what I have so I just have my debit card and of course cash. A lot of places I go to only accept cash but if they accept cards then I'll use my debit card.
 
 
 
Mar 27, 2011 at 12:40 AM Post #5 of 19

marvin

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I figure I'd have to visit the ATM machine to get some cash. I rarely have cash on hand unless I'm at a gun show or Chinese restaurant.
 
But as far as the destructiveness of financial instruments go, credit cards get a bad rap. The 30 year government subsidized mortgage has much greater market distorting effects.
 
Quote:
Sounds like this Ramsey fella is just spewing shocking ideas in order to sell something


Every financial guru has to have a schtick and his is a no debt philosophy. It gets a bit loopy at the corner cases, but it's a reasonably strategy for the lower-middle to middle class audience he attracts.
 
Mar 28, 2011 at 5:27 PM Post #6 of 19

logwed

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I don't own a credit card and I never have, but that's more due to my age than any personal financial philosophy. Credit cards and debt are not inherently bad things like the man suggests, but there are far too many people that don't have a realistic picture of how much debt they can afford. There are always going to be people that are irresponsible with spending, and overusing credit cards can certainly facilitate that, but they are very useful for those who have a mote of financial savvy.
 
Mar 28, 2011 at 6:07 PM Post #7 of 19

earthpeople

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I almost never carry cash with me anymore, always just keeping a debit and credit card on me. I do often use my credit card, but I make sure I have enough in my checking account to pay it off beforehand. I get bonus points using my credit card, so as long as I pay it off before incurring interest fees it's actually beneficial. And of course, credit cards are always good to have in case emergency situations come up.
 
 
Mar 29, 2011 at 11:35 AM Post #9 of 19

kiwirugby

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The Federal Reserve current statistics on  consumer debt gathered by the US government agency includes the following.
 
  1. The size of the total consumer debt grew nearly five times in size from 1980 ($355 billion) to 2001 ($1.7 trillion). Consumer debt in 2010 now stands at $2.4 trillion.
  2. The average household in 2010 carried nearly $6,500 in credit card debt.
 
 
The national debt is currently at roughly $14.3 trillion, or $128,380 per tax payer.   Of course by the time that I post this and anyone reads this, those numbers will go up.
 
If you add the two sums together, the country is carrying an awful amount of economic debt, some $17 trillion.
 
Mar 29, 2011 at 2:27 PM Post #10 of 19

beerguy0

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We currently have zero CC debt, and have been CC debt free for almost two years. It took us a while to get everything paid off, but it was definitely worthwhile. We still have, and use, our credit cards, but they get paid in full each month. It's not practical to not have them, especially when traveling. It's just a matter of being responsible.
 
Mar 29, 2011 at 2:57 PM Post #12 of 19

DemonicLemming

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On a broader scale, it seems like it would be nearly impossible for companies to do business without credit.  The fluidity of corporate accounting - purchase orders, net terms, and the like - almost demands that, at least on a company-to-company basis, that credit exist.
 
On a more micro scale, individuals not using credit cards isn't as strange as it seems; my debit card sees exponentially more use than all of my credit cards combined, as it saves me the hassle of dealing with cash and change, but doesn't put me in a position of spending money I don't actually have.
 
Responsible use of low-limit credit cards can be a good basis for a younger person to build credit, also.  Having too many (especially if they're all carrying a balance) is a bad thing, sure, but something with a maximum limit between $300 and $500 can go a long way towards teaching a teenager responsible use of credit, and build responsibility towards making set payments on a balance every month - good practice for much larger purchases later in life like cars, houses, mail-order Russian "maids", and finger-sparklies for wife appeasement after buying cool toys.
 
Mar 29, 2011 at 3:42 PM Post #13 of 19

nullstring

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From where I stand, There is absolutely no reason to not use a credit card other than the inability to manage funds/control spending.
 
For anyone with self control, there is no reason to not use a credit card.
The only time I ever used my debit card is at the ATM.
 
Most of my arguments are simply defined here:
http://banking.about.com/od/checkingaccounts/p/debitvscredit.htm
 
http://en.wikipedia.org/wiki/Debit_card#Advantages_and_disadvantages
 
  • Credit cards offer a buffer between you and the merchant. Any chargers that are can be reviewed and cancelled within 60 days if necessary.
  • Fraud laws and associated are different between credit and debit cards with credit cards always having the advantage
  • In my experience, credit card companies offer better service toward credit card accounts.
  • Credit cards offer better rewards programs.
  • If you need to make an large purchases and you don't have enough in your checking account (but do otherwise), you can buy immediately and reorganize your purchases later.
  • Although these can be disabled by the bank, you avoid overdraft fees.
  • Free 60 day loan == more interest for you, etc.
  • In my experience, debit cards are more expensive for the business to accept.
  • EDIT: forgot a big one, credit cards can boost your credit score. Even though I am just out of university, I have a credit score that is already near the 70th percentile. This credit score has instrumental value because it will allow you to get a lower rate on a car loan or mortgage. (And lots and lots of credit card offers in the mail >_>)
 
 
 
Mar 29, 2011 at 5:52 PM Post #14 of 19

appophylite

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Quote:
I may be one of the few in here that does not own a credit card. I personally believe in spending only what I have so I just have my debit card and of course cash. A lot of places I go to only accept cash but if they accept cards then I'll use my debit card.
 
 



But it is perfectly possible to spend only what you have with a credit card. You just have to be on top of how much you have in the first place. Like El_Doug, I detest having to carry large amounts of cash around. And my debit card concerns me because it has a higher limit on it than my credit card (and can be used as a credit card online), and is a bigger PITA to deal with during cases of dispute (at least, with Wells Fargo). My credit card, were it to get stolen or compromised, has a much smaller limit and dispute claims go much smoother with it. And likewise, I know how much money I have at the start of the month, and how much money I have spent, so I know exactly how much more I can spend on the credit card, because I only spend what I can afford to pay off at the end of the month.
 
Mar 29, 2011 at 6:04 PM Post #15 of 19

rroseperry

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There's definitely a place for credit cards, but you have to stay realistic and on top of them.  It took me about five years to get out of debt, but it's been completely worth it.  I've probably got two credit cards and a debit card.  I generally use the Amex, because you have to pay it off at the end of the mont.

 
 

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