Is Dave Ramsey Wrong About Credit Cards?

Подписаться 1,1 тыс.

Просмотров 1,6 тыс.

50% 1

What's the harm in using credit cards if you pay them off in full each month? How much wealth could you build if you invest your cash back rewards? Is Dave Ramsey's advice too strict or does it really apply equally to every single person?
Find out more about us:
www.wootencpa.com
******************************
*Disclaimer:
This video is for entertainment purposes only and is not financial, tax, or legal advice.
All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Our content is not tax, financial, or legal advice and should not be implemented as such by any individual, business, or other entity. Should you need such advice, consult a licensed financial, legal, or tax advisor. Any information contained in our content related to budgeting, finances, taxes, investments, etc. are solely our opinions and are not intended to influence specific decisions you make as it relates to your finances. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

Опубликовано:

16 окт 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 39

@shingchau1896 9 месяцев назад

Never paid a penny to the credit card companies for the 20+ years I've been using a credit card. Paying with a debit card is like leaving free cash on the table!

@IntentionalFinance101 9 месяцев назад

If you have a budget and the discipline to stick to it, I agree, the cash back and rewards seem like free money to me too. If not though, the interest and fees will quickly be more than any benefit received.

@marylandmike7655 9 месяцев назад

My wife and I actually took Dave Ramsey’s course to get out of debt and we succeeded! However we didn’t cut up the credit cards and use them for everything! we get roughly 2200 to 3000 a yr cash back and we don’t pay any interest.

@IntentionalFinance101 9 месяцев назад

That is awesome, congrats! Perfect example of the Ramey method strength of helping people get out of debt while also showing that not everyone has to avoid credit card usage in order to win with their money.

@carlosgarcia8770 6 месяцев назад

I agree with you 100%. I use credit cards to pay for just about everything, and apply the cashback money to my balance. When I get my bill I just pay the full balance. Ramsey is Wrong.

@IntentionalFinance101 6 месяцев назад

Absolutely. I think if you use the cc that way it’s perfectly fine to keep using it.

@araslintakas6810 9 месяцев назад

I enjoyed the way you explained this topic clearly. I often disagree with Dave, but then I am one of the few who can pay off my credit card every month, keep a 3% mortgage while I am making at least 5% with my cash, etc. BTW, I rarely disagree with The Money Guy Show.

@IntentionalFinance101 9 месяцев назад

Thanks for watching and commenting. I’ve been watching more of the Money Guy Show. I like their balanced view. I’m more in line with their thinking (with a few differences still). I like Ramit Sethi as well. You should check him out (no RU-vid channel I don’t think, he has a book and Netflix series).

@pch5938 4 месяца назад

I once heard that the credit card companies call their customers who pay their balance off monthly, deadbeats.

@IntentionalFinance101 4 месяца назад

I wouldn’t be surprised by that

@Joce123 9 месяцев назад

Everything in life is better if you have self-discipline

@IntentionalFinance101 9 месяцев назад

That's the truth.

@johnchristensen7096 9 месяцев назад

Thank you for making this video, I agree with almost everything Dave says, this is one area where I think he’s way too harsh, he always brings up the point that no millionaire made it on credit card points, but nobody is thinking with that same logic, I think you laid it out very well where if you’re going to spend the money from your budget anyway, you might as well get some cash back from doing so

@IntentionalFinance101 9 месяцев назад

Thanks John for watching and commenting. Dave has good advice, but I agree, it’s definitely too strict in several areas and doesn’t allow for people who have different situations to be addressed individually. And the “no millionaire became a millionaire this way” line is one of his favorites and it’s getting a little old. He twists it and uses it however he wants to make his point. Plus that’s never the point a caller is making anyway. It’s a classic example of a straw man argument and he does it constantly. It distracts, in my opinion, from his otherwise great advice.

@ericnewman6523 8 месяцев назад

Made $500 last year with my cash back.. I pay it off at least weekly! Never paid interest!

@IntentionalFinance101 8 месяцев назад

Awesome. Yea, I like to try to pay it off weekly too just in case I miss a week I still know I'm never late on a payment.

@PBMMoney 7 месяцев назад

Both of our channels cover personal finance ! Great content and I did a couple of videos on Dave !!

@IntentionalFinance101 7 месяцев назад

Thanks for watching and commenting. I'll check yours out.

@chrisschneider4226 Месяц назад

Ramsey is right about the psychology of credit cards, you don’t feel like you’re spending the same as cash. But Ramsey is super simplistic and gives really bad advice a lot of the time.

@IntentionalFinance101 Месяц назад

Couldn't agree more about the psychology. And if i were him (speaking to millions) I would also have a zero tolerance policy for credit cards. However, there's a way to budget where you can prevent spending more simply because you're using a credit card... but financially disciplined individuals are not exactly his target market, so it makes sense he does not speak to them on air.

@Tristin471 3 месяца назад

I agree, wholeheartedly. I like a lot of what Dave Ramsay says, but credit cards are the biggest thing that I disagree with him on.

@IntentionalFinance101 3 месяца назад

Yea, I understand why he takes the stance he does, but I still disagree with it. As you can tell from the video.

@Tristin471 3 месяца назад

@@IntentionalFinance101 It’s a good stance for people that are bad with credit/finances, but as a whole, not really. Even if 2% of $1000 is only $20, that’s still $20 more than I would have if I paid with a debit card or cash.

@leeposton1664 2 месяца назад

Dave Ramsey is excellent for people that don’t know how to manage money. But not so much for anyone else. Why not use a credit card and get points for flights or travel when you’re going to make those purchases anyway. Plus, it is better fraud protection than debit card. his argument for using a card versus cash also is because you spend more. OK that may be the case. But if you’re someone who still pays it off weekly or monthly and carry no interest balance. Again it’s a no-brainer.

@IntentionalFinance101 2 месяца назад

Thanks for watching and commenting... I see why Dave Ramsey has a zero tolerance policy given the credit card debt problem we have, but I also agree with you... there are people who can use them responsibly and utilize the benefits you mention.

@sssoundslike2259 5 месяцев назад

Just because the caller doesn’t have credit card debt, it doesn’t mean they are debt free. They could have other debt (car loans, general loans, mortgage loans, student loans, medical loans etc.) The issue is, most people don’t control their credit card usage. If people were, the banks would drop these perks. They offer them as they know people will overspend. Most people are not beating or outsmarting the Bank. Do you think these banks are offering these points/cash back because they suddenly feel guilty? People tend to overspend on credit cards (even if they settle their balance every month) which has been proven.

@IntentionalFinance101 5 месяцев назад

I don't disagree with anything you said. And it's why a vast majority of people should probably avoid credit card usage. However, we're party far now from when cash was the predominant form of payment. People who spend on credit cards vs a debit card, when they have the money, don't spend anymore than they otherwise would. Cash vs. plastic (whether it's debit or credit) probably does lead some people to spend more than they would with cash, but not everyone. The way we budget, I don't spend a penny more no matter which form of payment I choose and there are others out there like that too... so back to what I said in the video - Dave Ramsey is narrow minded in his view and while his advice is great for the masses, the are people who fall outside of it and would be perfectly fine utilizing credit cards. I stated I also don't think they're 'beating the system' or the banks... just utilizing a card and getting some cash back.

@joliettraveler 7 месяцев назад

Ramsey didn't answer the question. He shows his complete ignorance. If you pay your balance each month it is a interest free loan. What does arrogant Dave not understand.

@IntentionalFinance101 7 месяцев назад

Oh, he understands, but he has to reframe the question because he can't answer it. He can't go back on his 20+ years of being anti credit card, even when the situation would be ok for someone to use a credit card.

@techwithgriggs2879 9 месяцев назад

I saw a video from Rachel and Jada where they freaked out over a dude's F250. He had ZERO debt other than the truck. They said he had to sell it now, no debate only sell it! He was making $15-20k a month. The Ramsey hosts are completely insane and out of touch. They couldn't stand him having a nice truck to drive around (he said it was a luxury for him). They also forgot that he had no debt other than 80k on his truck and could easily pay it off in 6 months without sweating. Rachel was complaining about his super nice truck, which will hold its value, while she drives around a shitty Tesla that just lost 2/3rd of its value because of TESLA! I have stopped listening to anything from Ramsey Solutions. But do agree with other comment about The Money Guy Show

@IntentionalFinance101 9 месяцев назад

Thanks for watching and for the comment! I think that sometimes they react stronger in their show than they would if you talked to them in person in real life because they know their views come from the 'over-reacting'. It's also a lot harder to give general advice to millions than specific advice to individuals, but they do both and they give individuals generalized advice with hard lines in the sand for everyone instead of looking at the specifics of each person's situation. Their principles are good and will help you improve your financial well-being, so it's hard to criticize, but nuance in specific situations is certainly not something to go to the Ramsey show for. I don't even know why people call in at this point... it's obvious what they're going to say in every single situation... so who needs to call them and ask them? We all know what they're going to say before they say it.

@robertcampbellii9787 6 месяцев назад

Will people please stop giving Dave credit? (Pun intended) even if he is correct on some things, people who keep saying that he is right will cause him to become more arrogant.

@IntentionalFinance101 6 месяцев назад

I don't have any issues with Dave Ramsey. If he's right, it'd be ridiculous to say he isn't just because you don't like him. So where I agree with him, I'll mention it, and where I don't I will point out why. He helps a ton of people and I can't take any issues with anything he says as being wrong (except for that 8% retirement withdrawal rate... look it up if you haven't seen anything on that because that is flat out wrong), but I do disagree with him on some things, such as the credit card issue.

@robertcampbellii9787 6 месяцев назад

@@IntentionalFinance101 I'm not saying don't, but it is important to note that for each person saying that he's right and he sees it; it will cause a boost to his ego and he will continue doing what he does.

@IntentionalFinance101 6 месяцев назад

@robertcampbellii9787 yea, I get it. I don’t think he’ll ever see one of my videos though 😉

@joliettraveler 7 месяцев назад

Ramsey is the one who is arrogant!

@IntentionalFinance101 7 месяцев назад

He definitely comes across that way at times on the show. Never met him personally to know what he's actually like though. There's probably a difference in someone's true personality and their celebrity, public figure persona.