I honestly did what she said in this video when I was 18 and I ACTUALLY did that. To this day 13 years late I do not pay interest on the card and get all my points. It can be done. I just don't think everyone can do it.
Am I the only one who’s deeply annoyed by the girls stupid looking wide-eyes? I swear to God, it’s like they TRY to look low IQ on TikTok, almost like it’s a trend 😒
What she said is not wrong. It just happens that most people do forget about this advice once they start using it. That’s why Dave’s advice works cos he factors in human behavior. If you are savvy enough to use CCs, then good for you.
Yup, I've never carried a balance and track my spending like a hawk, but the majority aren't like that. They get tempted by the rewards then go off track.
@@Helthurian They don't get tempted by any rewards. They just "want that unnecessary thing" and they buy it ignoring the consequences. Almost like they think the cc company will make a mistake and forget to send them the bill.
Which makes her spoken like a true young person who thinks that they know everything because of the math. And yet someone who hasn't lived through life and understood how life actually works.
Exactly this! I respect Dave because he’s steering people with poor financial habits and debt away from them. To build good habits without the crutch of a CC. This is important. But why tell folks who are living a simple life, maxing out their retirement with no debt, that they CANT use CCs because many others don’t know how? Just be honest. Say it often doesn’t work out, say you don’t agree with it. But stop saying it works for no one, because that’s just factually incorrect.
If 52% of active credit cards had a balance, that means 48% did not. So the “pay it off in full every month and earn the perks” approach works for nearly half of people. A rigid “credit cards are bad” stance doesn’t make sense. They’re bad for some people and good for others.
thats an extremely misleading stat. A huge number of those credit cards are work cards that get paid off by the company and another huge number of those are just cards the person never used in the first place and just has for emergencies or have second and third credit cards with zero balance but their primary one has a huge balance. The percentages do not reflect the proportions of people with credit cards that keep a zero balance.
@@alexlewis8143 I don' really understand this as I've had a CC since I was a kid. I've never thought of a CC as anything other than a extension of my own money. Anytime I spent money CC or not I thought to myself how much work it took or how long it took me to make that money
I agree that for most people, cc are dangerous. We actually DO pay ours off every month & only spend what we were going to spend anyway. We travel a lot and are Hilton Honors members. Not only do we get benefits like late checkout, diamond parking, free upgrades, 5th night free, etc. many of our stays are covered w/points. So yes, it has saved us a LOT of money because we were doing these trips anyway and would have had to pay out of pocket for the hotel stay. I should also note that Dave always rags on ppl about the cc benefits saying no one ever got rich from them. Thats true. I never claimed we have or are going to get rich off cc points. I don't know anyone who actually thinks that. I look at it like any other money saving tool in our toolbox. Coupons, discounts etc. Just a help. Not a way to get rich lol
Dave wouldn’t like to hear that I’m driving to take my son to Washington DC for the weekend for free and have a free stay at the Mandarin Oriental that I would never spend my own money on. But Chase did. 😊
@@sha2596 that's awesome! But remember, Dr. John and George will think you're the devil because that money came from irresponsible people who didn't use their cards correctly!
I get their point, most people don't and everyone starts off saying they will. But, like you, we DO - and in fact, charge EVERYTHING - even our monthly bills. We accrue a few thousand dollars a year in cashback rewards.
@@michaelh7527 I know exactly what she said. She spoke for herself not for anyone else plus you can't prove that she's lying. Also the all time high comment has nothing to do with what she is doing.
@@michaelh7527 Just because MOST of you are stupid with your money doesn't mean WE ARE ALL stupid with our money. Past 2.5 years = $500 more I get to invest just by having my CC. Not just that, that additional $500 will COMPOUND for years and years and years and years and years....
Honestly the only really disturbing thing about that video is the tone like she’s talking an eight year old. She’s using the cloying voice of a kindergarten teacher, not talking to hear adults about adult topics. Totally cringeworthy.
I used cc almost 20 years, always pay full amount every month, never paid a penny interest to the cc company, instead, I earned cash back from cc company by the money I spend. I always make sure only spend the money I “have to” spend, and budget everything. Now I’m 38 years old, should be able payoff my house mortgage become completely debt free end of this year or beginning of next year. I just want to say, cc is not a bad thing for people like me, who love to save money and carefully spend every single dollar, I can use it as a tool to make some extra money (cash back) for the money I have to spend.
@Zagreus I only get cash back from my cc, not the point for travel, and that small amount of cash back reward won’t impact my spending decisions, I usually forgot it even exist have to set a reminder to redeem it.
@Zagreus I agree, business owners have already increased the merchandise prices in order to accept cc in their stores, regardless I use cash or cc, I’m paying the same amount, then why not use the cc(at least it can give me some cash back)~ Sounds really unfair to the cash customers, they’re paying more for cc cost which they don’t use, and they don’t get cash back or other benefits like cc customers got.
Until life happens and you can't that month (job loss, vehicle emergency,medical, etc.) CC are designed to trick yourself into thinking you can maintain it without issue Some can but the majority DO NOT, hence the trillion plus in debt in the US and millions collected in late fees🤷
@@brandondriver1377 Guess what! "Life will happen" whether you have a fall-back position or not! It's INSANITY to have FEWER "fall-back" positions due to some cultish financial philosophy! Your car dies, but you don't have the cash to fix it? Guess you lose your JOB, BUCK-O!
Technically yes. This is a “literally true, figuratively false” case. Everything said was in point but in the end most people do worst by following her advice (as shown by the stats)
@@esonon5210the Federal Reserve of New York has the stats and US citizens alone have over $1 trillion dollars of credit card debt combined and over 50% of the people who use credit cards in the US carry a balance (meaning they do not pay it off in full). This is why this girl is literally correct but in reality is false. The reality speaks for itself. Credit cards are statistically more dangerous for most people to use than not. If you hypothetically knew you had over a 50% chance to become addicted to alcohol after you started using it, would you continue to use it? Would you recommend your friends or family use it? I would hope the answer is no. So why defend credit cards? We as a society are clearly incapable of safely using a credit card. We have a spending addiction and credit cards help us fuel that addiction. So therefore even though the literal words this lady is saying aren’t false, the deeper meaning is that it’s ok to use a credit card when the stats suggest otherwise.
@saqlaq96 We can't possibly know that. Not everyone who got a credit card did so because of the points or miles programs. Unfortunately, they don't separate the stats saying who applied for credit cards to earn points or miles and who applied for no interest for 6 months or who just got a credit card because they saw something they couldn't afford. I earned $1,000 in points over the last 2 years. Credit Card company ain't making a dime off me.
When John looked at the camera and said “James, George is getting existential over here man” I felt like he broke the 4th wall and was talking to me directly through the screen. My name is James btw.
I mean- I agree with them, but also I payed my credit card as if it was a debit my whole college career and never once carried over my debt. And now that I am married, my husband and I are super disciplined and do the same thing. We only use it like a debit card. If we don’t have the money we don’t buy it.
Nothing she said is "wrong". Yes, the majority of Americans can't pay their debt, no denying it. But, the small percentage who can get exactly what she said, I.e., free or reduced fare travel, cash back, etc. I've been on both sides, the debt side sucks. But, I also see the benefits of having it and what I can get from it. My income means it will not get out of hand, but that's my situation.
100% I don’t get the close mindedness these guys have well I do but it’s unfortunate to not elaborate on how being disciplined w things like a cc can do wonders
She said IF YOURE RESPONSIBLE. The majority of people overestimate themselves. But those of us who can handle it, even 2-5% cash back plus sign on bonuses is worth it. Every penny matters. The fact we give away so much in taxes, at LEAST those of us who are responsible enough, can lower our actual outgoing cash and save more. A savings account no longer overs a 2-5% return anymore. And people always hype those up
That's like saying "don't invest/start a business" to save money on taxes and increase your income because every investor loses money and 8/10 businesses fail on average. Ramsey's advice is only for adults who either act like children or have no risk tolerance. 🙄
Dave’s advice is based on a plan that always works, 100% of the time. No question about it. Is his way the fastest/best way to build wealth? No. Not at all. Hardly anyone that builds wealth follows his method. The amount of people that build wealth without debt is tiny. But Dave’s way is the safest, and he knows that by giving the safest advice it always works, and he can never be wrong.
@@15KHPCLUB - I must have missed your financial advice channel. You know, the one that’s helped no one get out of debt and build wealth. Please shoot me the link because I’m an adult who clearly needs your advice. Forget those children and idiots who follow Dave. They’re just a bunch of idiot lemmings.
Consider their audience. Millions of people who probably skew towards those who have problems managing their finances. Yeah, he should tell them not to drive too.
Never been on TikTok, never got an account with them!! I'm sick of all of these social media platforms that make you feel like you "have to" get an account and for what?! To waste time and energy watching other people live their lives lol!! I'm trying to start living in the REAL world as it is!!😂
I especially love their truly bizarre notion that me paying my CC in full each month for necessities (groceries, utilities, insurance, etc.) somehow makes me complicit in the exploitation of some struggling single mother in the ghetto!
John regrets going into credit card debt to replace his transmission. He says that it took him years to get out of debt. Instead of going into debt, he could have abandoned the car since it had no transmission, dropped out of college because he couldn't get to campus, not found a job because he had no transportation, and simply lived in his parents' basement--credit card debt free.
A big red flag is when people who give financial advice use absolute terms. For instance, "No one opens one going, 'I can't wait to go into debt and carry a balance every month.'" I can't wait to go into debt and carry a balance every month when I open my next credit card. I know several people who say something similar. Proven wrong.
I usually follow Dave's advice when it comes to debt, but there's NOTHING wrong with what the girl said in the video. It's all about DISCIPLINE. Have been doing this since a few years now. Did not pay a penny in interest. Got a ton of Cashback and Miles though!
@@VincentVanHalen55 that's a lot of intertwined words. But yes, I did watch the video. And if you didn't get what I wanted to convey earlier, the girl said nothing wrong. No harm in having credit cards if you are disciplined. 🙃
I think the Point is about half of people fuck up with their credit cards. I strongly disagree when dave is talking about people with a good history of proper card Use if you have shown you can use a card use a card. But if you are just talking the average young person getting started right off the bat the odds are basically a 50% chance of getting 2% back or a 50% chance of getting -16% and that isn't good a bet.
These are the same naive kids who advocate for student loan forgiveness. LOL Nope, ain't gonna happen. But by all means, run that CC bill up. Max it out. Years later you will have that "you were right" conversation with your folks.
I don’t think u can say this is bad advice because it’s not! I think it’s good to remind people that good intentions are not always reality….and CC are not for everyone, but I know lots of people including myself who have never paid interest. I take a nice vacation every year and pay nothing outside of airline and hotel fees. Additionally, CC offer a lot of other perks besides points and are a lot safer to use than debit cards.
12 years and never paid interest or missed a payment. I am reimbursed from the transaction fee that is charged to the vendor with any plastic transaction debit or credit. I don’t get miles, I get cash back.
One thing they didn't touch upon was the autopayment option. I only use autopayment sparingly. For bills that are a regular amount every month, like my hydro bill, or my gas bill. I can't justify to myself why I would grant access to something with an ever changing amount. What happens if there is a bad charge on credit card, and you are late checking the bill? That money is already out the door. What happens if a sudden unexpected expense on the credit card suddenly leaves you with not enough money to pay your mortgage or rent?
Honestly, this is one of the best things about having an AmEx, particularly their luxury cards. Since they’re charge cards, you HAVE to pay back the full amount.
I really wished I had known this 10 years ago when trying to buy a house! I had over 200k in my investment account, but still couldn't qualify for a mortgage! Your score has nothing to do with wealth!
@@MyCatChloe we do more of the things we incentivise, goes for spending aswell, good that you can pay if off each month but that doesn't mean you are not over spending in the long term
Just because Dave didn't know how to manage debt and went bankrupt doesn't mean everyone will.i know of more people that started with almost nothing and now have a 300 million+ net worth like Dave.they all did it with real estate and borrowed money.Dave is the only person I know of that has done it without borrowing any money and that's good that it worked for him.
The girl is annoying, tiktok advice is trash, the message is true! Use it as a debit n pay it off at the end of the month. Not hard to do! She never said use it to buy things outside of your monthly expenses
No? It’s 100% accurate. Just because people lack self discipline to not use them properly doesn’t make it true. Follow a budget, be an adult and you won’t find yourself falling into the “psychological trap” of spending more on the card than you would with cash. If you don’t have the discipline and will power to not overspend, don’t get a CC. You would be wise not to. Many people have the discipline, though. -10 year CC user that is financially secure.
I still don’t know why they act like it impossible to have a credit card, enjoy the benefits, and not carry a balance. I’ve been using credit cards for almost a decade. Only carried a balance for 6 months 1 time on a 0 interest card to pay for groceries when I took a new job that had 3 months of no pay and ended up landing me in a $300k+ per year position.
I totally enjoy my cash back and my "free"vacation without my conscience bothering me because my neighbor is having trouble managing his debt Dave Ramsey always talks about being a responsible adult and that means not spending money you don't have and not borrowing what you can't afford to pay back that's the way the system is designed and I take full advantage of it as do most people who manage money well and become wealthy so play the game and play to win the game is not rigged if you lose you're not playing it right those who win this game know how to play and those who lose don't that's all
Totally agree. If you are an alcoholic, don’t have alcohol in the house or go to bars. However, I use mine wisely and use my rewards. Best reward is a VIP lounge in an airport. A few drinks plus food will cost you around $200, and it’s free. You gotta know how to play the game, but being 17 STAY AWAY FROM THEM!
20 with no cc problems or debt. Definitely think that travel rewards are backwards because they encourage you to travel and you may spend more or take a brake from work loosing income but cash back is great.
@@SidewaysEightSix my card costs $600 a year and the VIP lounge yearly access costs $600. Plus, I get $100 global entry, $120 wireless cash back, $200 airline fees back, $100 Fedex back, 24/7 platinum concierge, and other perks. How am I financing my bank??
I’ve been using my credit card like this for years and years. I NEVER pay interest, have not for probably 20 years or so, and I always get back quite a bit in cash back points. I put everything on there, just paid my house insurance premium on there. I have the money right in the bank transferred yesterday. as soon as it isn’t pending any more I’ll pay it off. I am extremely self disciplined, though. If I can’t pay it off when the bill comes in, I find another way to pay for an emergency expense. I use my EMERGENCY fund to take care of things like car repair. Using credit cards is a luxury for people who have a financial cushion. Poor people need to stay away from them.
Why the F cant you pay it off every month? I have hundreds of thousands of airline miles, I'll never pay for a flight again, and the bank isn't getting any interest on my CC. Is this advice for smooth brains?
Peter Lynch used to say that when everyone has a stock tip wherever you go, it’s time to sell. Whereas if you go to a party and talk about stocks and no one wants to talk to you, that’s the time to buy!
Agreed. But I have a friend who does thousands of dollars worth of purchases for her church w her cc that they reimburse her for and she pays it right off. She racks up serious points this was
@@IzzyMakesMusic this scenario happened to me in smaller scale before. I often travelled with groups of friends or coworkers, I was frequently appointed as the “travel coordinator”, we used my CC for purchases and reimbursed me in cash. In concise, I bought my furnitures and home accessories from points.
Actually this is exactly what I do and have done every month for almost 30 years since I got the card. Ive never paid a single cent in interest and I only buy things that I know I can afford. It works great if you aren't a greedy idiot.
She did not say a single incorrect thing. It’s just that most people have horrible impulse control. If you can set a limit and stick to it, maximize the free flights. I haven’t paid for a flight in several years from points alone.
The sad part is that most people will end up paying interest. We have a discipline problem. I own several credit cards and have never paid interest. But i also only spend money on it that I have the actual cash on hand to pay off (groceries, gas and other budgeted expenses).
Have had credit cards for almost 20 years and never paid a penny in interest. I'm far from a financial expect, but it can be done. Don't get out of control, don't spend more than you can afford.
As a gen z, peers of mine laugh at the fact that I listen to “old channel” that consider in yt for financial advice while I laugh at them about tiktok financial advice 😂
I mean if you have the discipline I don't see why its a big issue?? I get most people don't, but if you do like me and my wife have done we have gotten over 10k in free vacation travel WITHOUT paying interest or spending more than we already would. Most people can't do this but don't say its impossible
This is exactly what I do and have been doing for years, though I am responsible. I use my CC to buy the things I buy every month anyway and yes, I get cash back. I pay it off every month and do not pay interest. Just transferred $1200 cash back to my personal account. Win/win. To say this is foolish across the board is...well...foolish. It's not difficult.
Exactly. I'm the same way and I have doe it for years. Plus, having no credit is worse than having bad credit. Only way to build that up is to get a credit card and pay it off every month
As a business owner that accepts all forms of payments, the costs of the CC processing fees is between 2-3%. The cost of your cash back and miles is baked into the cost charged back to the consumer. Your not winning with CCs, you’re breaking even at best.
As a fellow business owner, I try to tell my clientele that I will charge a 5% fee on top of the their total if they decide to pay by using ANY source of plastic (CC/DC) and they reply, “that’s okay, I get cash back” 😂😂
@@gianfrancoilliano my insurance wants to auto draft my acct to avoid paying them a fee so although I hate people auto drafting (because they take out the wrong amount and then I have to wait on them to reimburse me 🤦🏽♀️) I let them do it. But at the store I see where I pay more for using a card. So would I be getting charged more if they are bumping the price up to cover card transactions fees when I'm using cash?
Can be done, just have to be diligent. You should have a robust emergency savings beforehand so you never use the cc for emergencies. You should check the balance every week to make sure you aren't overspending. Always pay off the full amount. Etc. For most, that discipline requires time to develop before it's smart to get a cc.
I agree and it’s hardly ever mentioned. You should never get a credit card until u have a robust amount in savings and u should never get a CC until u have stable enough income coming in such that u are able to turn on autopay and not worry about it being on.
She's absolutely correct. Debt, in any form, is a tool. It can be used correctly or incorrectly. Stop trying to shame people with more restraint than you.
She gave great advice. Exactly what I did at 18 and now I have over an 800 credit score at 24. Just gotta pay it off right away. Plus if money gets stolen off your credit card it’s way easier to fix than with a debit card
I am 35, I have had the same credit card since 18, no fees, 3% cash back and free insurance on purchases and I’ve never not payed it off completely at end of the month. I make about 500 a year using the banks money, why would I use my debit and pay transaction fees?
To be fair. I've lived that strategy of credit card for 20 years. I've also attended daily mass for 20 years and run marathons, stayed a V until marriage at 29 and now have 5 children that i take to daily mass and homeschool. So i don't think i would recommend this strategy to most people.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
I honestly did what she said in this video when I was 18 and I ACTUALLY did that. To this day 13 years late I do not pay interest on the card and get all my points. It can be done. I just don't think everyone can do it.
Ya, its the 50% of the people that don't pay that let me get all the free Apple products.
Grats, and true, BUT do you still find yourself buying things you dont need, or dont cost-shop?
Definitely can be done
@@faradaysage15 no I don't. I only pay for necessities on the card.
@@faradaysage15 haha I need to buy what I want. Jk, but I also do want to enjoy my life a bit.
Tik Tok is my go to financial advisor. I listen to Ramsey for meal ideas.
Rice and beans! 😂
💀💀💀💀
😂😂😂😂😂
Lol 😂 cup of noodles or ramen 🍜 for me.
Legendary comment right here...
Hilarious comment I've seen:
"If idiots could fly, tik tok would be an airport"
🤣🤣
Oh so true!!!!!
Am I the only one who’s deeply annoyed by the girls stupid looking wide-eyes? I swear to God, it’s like they TRY to look low IQ on TikTok, almost like it’s a trend 😒
Well said, sir or ma'am. Well said indeed.😂
Having worked in finance for over 20 years, majority of people do not pay their bill off every month. Some do but the vast majority do not.
@Prey R no they keep auto pay on for the minimum amount still then the interest keeps building and the person keeps spending
@Austin Duke you’re welcome🙃
Don't be the majority
Who cares what the majority does? The majority of people have messed up finances as well.
Yep. The finance people would know. They have the proof. Instead let’s listen to TikTok influencers.
What she said is not wrong. It just happens that most people do forget about this advice once they start using it. That’s why Dave’s advice works cos he factors in human behavior. If you are savvy enough to use CCs, then good for you.
Yup, I've never carried a balance and track my spending like a hawk, but the majority aren't like that. They get tempted by the rewards then go off track.
@@Helthurian They don't get tempted by any rewards. They just "want that unnecessary thing" and they buy it ignoring the consequences. Almost like they think the cc company will make a mistake and forget to send them the bill.
Which makes her spoken like a true young person who thinks that they know everything because of the math.
And yet someone who hasn't lived through life and understood how life actually works.
Also, when you can't see the money, it is magical: there is always more of it.
Exactly this! I respect Dave because he’s steering people with poor financial habits and debt away from them. To build good habits without the crutch of a CC. This is important. But why tell folks who are living a simple life, maxing out their retirement with no debt, that they CANT use CCs because many others don’t know how? Just be honest. Say it often doesn’t work out, say you don’t agree with it. But stop saying it works for no one, because that’s just factually incorrect.
Pay off the cc balance every month and collect air miles for every dollar you spend. Been doing it for 15 years. No debt, lots of air miles.
Yep. I went to hawaii last year, Seychelles this, entirely on air miles. Apparently this is a bad thing.
If 52% of active credit cards had a balance, that means 48% did not. So the “pay it off in full every month and earn the perks” approach works for nearly half of people. A rigid “credit cards are bad” stance doesn’t make sense. They’re bad for some people and good for others.
thats an extremely misleading stat. A huge number of those credit cards are work cards that get paid off by the company and another huge number of those are just cards the person never used in the first place and just has for emergencies or have second and third credit cards with zero balance but their primary one has a huge balance. The percentages do not reflect the proportions of people with credit cards that keep a zero balance.
LOLLLLLL this is how I got into CC debt as a 19/20 year old. “I can be responsible. I won’t spend more than I can afford.” 🤣
I laugh at how arrogant I was as a teenager sometimes
Would 30/40 year old you be more responsible?
Right I told my mom I have no business having one and she continues to convince I need that
@@alexlewis8143 I don' really understand this as I've had a CC since I was a kid. I've never thought of a CC as anything other than a extension of my own money. Anytime I spent money CC or not I thought to myself how much work it took or how long it took me to make that money
@@Shane-h4uu Same here. My parents raised me to always be conscious of money though
We pay the full balance EVERY MONTH. I get it, most people aren't like us. But still, there are those of us who DO.
Amen
Same
Exactly!
Agree with your comment 100%, same here.
Same with me
I agree that for most people, cc are dangerous. We actually DO pay ours off every month & only spend what we were going to spend anyway. We travel a lot and are Hilton Honors members. Not only do we get benefits like late checkout, diamond parking, free upgrades, 5th night free, etc. many of our stays are covered w/points. So yes, it has saved us a LOT of money because we were doing these trips anyway and would have had to pay out of pocket for the hotel stay. I should also note that Dave always rags on ppl about the cc benefits saying no one ever got rich from them. Thats true. I never claimed we have or are going to get rich off cc points. I don't know anyone who actually thinks that. I look at it like any other money saving tool in our toolbox. Coupons, discounts etc. Just a help. Not a way to get rich lol
says everyone else also
Dave wouldn’t like to hear that I’m driving to take my son to Washington DC for the weekend for free and have a free stay at the Mandarin Oriental that I would never spend my own money on. But Chase did. 😊
@@sha2596 that's awesome!
But remember, Dr. John and George will think you're the devil because that money came from irresponsible people who didn't use their cards correctly!
Most people don't.
I get their point, most people don't and everyone starts off saying they will. But, like you, we DO - and in fact, charge EVERYTHING - even our monthly bills. We accrue a few thousand dollars a year in cashback rewards.
I love my CC and my budget! I’ve never paid interest, I stay strictly within my budget and I still rack up my rewards. Yay!
Every darn person out there claims they pay off their card monthly. But cc debt is currently at an all time high 🙃
@@michaelh7527 What does that have to do with the person you replied to?
@@esonon5210 Read her post again and then come back.
@@michaelh7527 I know exactly what she said. She spoke for herself not for anyone else plus you can't prove that she's lying. Also the all time high comment has nothing to do with what she is doing.
@@michaelh7527 Just because MOST of you are stupid with your money doesn't mean WE ARE ALL stupid with our money. Past 2.5 years = $500 more I get to invest just by having my CC. Not just that, that additional $500 will COMPOUND for years and years and years and years and years....
Honestly the only really disturbing thing about that video is the tone like she’s talking an eight year old. She’s using the cloying voice of a kindergarten teacher, not talking to hear adults about adult topics. Totally cringeworthy.
Is this really the worst they could find on TikTok? C'mon, you can do better. 😆
The money guys did a video on that. It was jaw dropping. I never heard such bad advice in my life.
exactly i feel like they have no material
Just because those individuals think it's bad advice doesn't make it bad advice.
I used cc almost 20 years, always pay full amount every month, never paid a penny interest to the cc company, instead, I earned cash back from cc company by the money I spend. I always make sure only spend the money I “have to” spend, and budget everything. Now I’m 38 years old, should be able payoff my house mortgage become completely debt free end of this year or beginning of next year. I just want to say, cc is not a bad thing for people like me, who love to save money and carefully spend every single dollar, I can use it as a tool to make some extra money (cash back) for the money I have to spend.
Congratulations on handling your money well! It's unfortunate that a lot of people use their cards for "I want to" purchases and not "have to."
😂😂 jk. That’s awesome though man. I wish everyone was like that.
@Zagreus I only get cash back from my cc, not the point for travel, and that small amount of cash back reward won’t impact my spending decisions, I usually forgot it even exist have to set a reminder to redeem it.
@Zagreus I agree, business owners have already increased the merchandise prices in order to accept cc in their stores, regardless I use cash or cc, I’m paying the same amount, then why not use the cc(at least it can give me some cash back)~ Sounds really unfair to the cash customers, they’re paying more for cc cost which they don’t use, and they don’t get cash back or other benefits like cc customers got.
But it's not for everyone. Not for me. I failed miserably for years haha
I want to see Dave react to these 😂
Yeah they ripped us off lol we need Dave’s reaction 🤣
there is a very good chance he would explode. that's why jon locked him away while they reacted.
Sell the phone
Dave's reaction to the video creator: Sell the phone
Paying off your balance in full monthly is great advice...
Until life happens and you can't that month (job loss, vehicle emergency,medical, etc.)
CC are designed to trick yourself into thinking you can maintain it without issue
Some can but the majority DO NOT, hence the trillion plus in debt in the US and millions collected in late fees🤷
@@brandondriver1377 Guess what! "Life will happen" whether you have a fall-back position or not! It's INSANITY to have FEWER "fall-back" positions due to some cultish financial philosophy! Your car dies, but you don't have the cash to fix it? Guess you lose your JOB, BUCK-O!
they are like the old Muppets in the balcony and i love it.
The girl didn't say anything wrong though
She did ...as "mom" !
Technically yes. This is a “literally true, figuratively false” case. Everything said was in point but in the end most people do worst by following her advice (as shown by the stats)
@@saqlaq96 No its just true, period. What stats?
@@esonon5210the Federal Reserve of New York has the stats and US citizens alone have over $1 trillion dollars of credit card debt combined and over 50% of the people who use credit cards in the US carry a balance (meaning they do not pay it off in full). This is why this girl is literally correct but in reality is false. The reality speaks for itself. Credit cards are statistically more dangerous for most people to use than not. If you hypothetically knew you had over a 50% chance to become addicted to alcohol after you started using it, would you continue to use it? Would you recommend your friends or family use it? I would hope the answer is no. So why defend credit cards? We as a society are clearly incapable of safely using a credit card. We have a spending addiction and credit cards help us fuel that addiction. So therefore even though the literal words this lady is saying aren’t false, the deeper meaning is that it’s ok to use a credit card when the stats suggest otherwise.
@saqlaq96 We can't possibly know that. Not everyone who got a credit card did so because of the points or miles programs. Unfortunately, they don't separate the stats saying who applied for credit cards to earn points or miles and who applied for no interest for 6 months or who just got a credit card because they saw something they couldn't afford.
I earned $1,000 in points over the last 2 years. Credit Card company ain't making a dime off me.
Cashbacks aren't meant to make you rich. They are discounts
@Kyle Welch What??
When John looked at the camera and said “James, George is getting existential over here man” I felt like he broke the 4th wall and was talking to me directly through the screen. My name is James btw.
lol
I mean- I agree with them, but also I payed my credit card as if it was a debit my whole college career and never once carried over my debt. And now that I am married, my husband and I are super disciplined and do the same thing. We only use it like a debit card. If we don’t have the money we don’t buy it.
BINGO!
If Uncle Dave can't make the show, Dr. John and George are the best alternative duo
Dr. John is cringey af
Nothing she said is "wrong". Yes, the majority of Americans can't pay their debt, no denying it. But, the small percentage who can get exactly what she said, I.e., free or reduced fare travel, cash back, etc. I've been on both sides, the debt side sucks. But, I also see the benefits of having it and what I can get from it. My income means it will not get out of hand, but that's my situation.
100% I don’t get the close mindedness these guys have well I do but it’s unfortunate to not elaborate on how being disciplined w things like a cc can do wonders
She said IF YOURE RESPONSIBLE. The majority of people overestimate themselves. But those of us who can handle it, even 2-5% cash back plus sign on bonuses is worth it. Every penny matters. The fact we give away so much in taxes, at LEAST those of us who are responsible enough, can lower our actual outgoing cash and save more. A savings account no longer overs a 2-5% return anymore. And people always hype those up
That's like saying "don't invest/start a business" to save money on taxes and increase your income because every investor loses money and 8/10 businesses fail on average.
Ramsey's advice is only for adults who either act like children or have no risk tolerance. 🙄
Dave’s advice is based on a plan that always works, 100% of the time. No question about it. Is his way the fastest/best way to build wealth? No. Not at all. Hardly anyone that builds wealth follows his method. The amount of people that build wealth without debt is tiny. But Dave’s way is the safest, and he knows that by giving the safest advice it always works, and he can never be wrong.
@@15KHPCLUB - I must have missed your financial advice channel. You know, the one that’s helped no one get out of debt and build wealth. Please shoot me the link because I’m an adult who clearly needs your advice. Forget those children and idiots who follow Dave. They’re just a bunch of idiot lemmings.
Yes, debt is bad. Unfortunately so many things are dependent on our credit scores! Like mortgages, insurance rates, and actual job opportunities!
Credit scores only exist in backwards countries like the USA! They are the reason intelligent people do not stay in America!
Right! I am not sure how he was able to get a home, car, apartments without a credit score because having no credit is worse than having bad credit.
Yeah, these guys are actually wrong here. That's like saying no one should drive cars cause SOME people could drive recklessly and cause accidents.
Consider their audience. Millions of people who probably skew towards those who have problems managing their finances.
Yeah, he should tell them not to drive too.
probably the worst analogy ever.
Never been on TikTok, never got an account with them!! I'm sick of all of these social media platforms that make you feel like you "have to" get an account and for what?! To waste time and energy watching other people live their lives lol!! I'm trying to start living in the REAL world as it is!!😂
I especially love their truly bizarre notion that me paying my CC in full each month for necessities (groceries, utilities, insurance, etc.) somehow makes me complicit in the exploitation of some struggling single mother in the ghetto!
John regrets going into credit card debt to replace his transmission. He says that it took him years to get out of debt. Instead of going into debt, he could have abandoned the car since it had no transmission, dropped out of college because he couldn't get to campus, not found a job because he had no transportation, and simply lived in his parents' basement--credit card debt free.
OUTSTANDING response! Sums it up PERFECTLY!!
Everything she said was accurate, you just don’t like it because your god Dave doesn’t like it
I bet you have zero savings lol
@@faradaysage15 nice on faraday
I’ve been doing this for over 10 years and have never paid a sense of interest and have always paid my full balance on time.
Ummm everything in the tik tok video was true
George makes NO sense. On the backs of someone who can't afford it. No cents George
A big red flag is when people who give financial advice use absolute terms. For instance, "No one opens one going, 'I can't wait to go into debt and carry a balance every month.'" I can't wait to go into debt and carry a balance every month when I open my next credit card. I know several people who say something similar. Proven wrong.
I usually follow Dave's advice when it comes to debt, but there's NOTHING wrong with what the girl said in the video. It's all about DISCIPLINE. Have been doing this since a few years now. Did not pay a penny in interest. Got a ton of Cashback and Miles though!
Tell me you didn't watch the video without telling me you didn't watch the video
@@VincentVanHalen55 that's a lot of intertwined words. But yes, I did watch the video. And if you didn't get what I wanted to convey earlier, the girl said nothing wrong. No harm in having credit cards if you are disciplined. 🙃
@@VincentVanHalen55 Also, you don't have to agree with me. That's my view and I have gone by it for years now.
I think the Point is about half of people fuck up with their credit cards. I strongly disagree when dave is talking about people with a good history of proper card Use if you have shown you can use a card use a card. But if you are just talking the average young person getting started right off the bat the odds are basically a 50% chance of getting 2% back or a 50% chance of getting -16% and that isn't good a bet.
@@guppy719 Yes, agreed. That's why I said you HAVE TO BE DISCIPLINED. Else stay away from Credit Cards!
The fact that she thinks most people (especially in this generation) isn’t gonna use CCs irresponsibly
That Tik Tok is completely correct, this is one of the Dave Ramsey principles that doesn't make any sense for responsible adults, we're not kids.
Most people are not financially responsible adults.
@@actuallyterry that's on them, quit throwing a blanket on everyone. We are not alcoholics
We're ALL kids when it comes to personal finance
@JRwntcTV no we're not.
Dave Ramsey built a financial Literacy empire on people not being responsible adults😂
If most were, this RUclips channel wouldn't exist🤣
THANK YOU!!! I saw her videos on TikTok during the 10 days I had it and cringed at her advice. Her real estate investing advice is even worse. 😩
These are the same naive kids who advocate for student loan forgiveness. LOL Nope, ain't gonna happen. But by all means, run that CC bill up. Max it out. Years later you will have that "you were right" conversation with your folks.
It's a kid. It doesn't make sense to even listen to any advice of the sort from her. She's still wet behind the ears.
@@CajunSmack well surprisingly, many borrowers have already had their loans wiped out so you can shove it
Haven’t heard the real estate advice that you are talking about, but she wasn’t wrong, doesn’t make the advice smart, just not wrong
@@sblijheid Yes but her target audience is probably just like her; same age or younger.
I don’t think u can say this is bad advice because it’s not! I think it’s good to remind people that good intentions are not always reality….and CC are not for everyone, but I know lots of people including myself who have never paid interest. I take a nice vacation every year and pay nothing outside of airline and hotel fees. Additionally, CC offer a lot of other perks besides points and are a lot safer to use than debit cards.
i don't use debit cards because when there is fraud, guess what, they lock your account down. so only credit cards, and pay it off every month.
12 years and never paid interest or missed a payment. I am reimbursed from the transaction fee that is charged to the vendor with any plastic transaction debit or credit. I don’t get miles, I get cash back.
We need Dave Ramsey reactions to financial TikTok 👀👀👀👀👀
One thing they didn't touch upon was the autopayment option. I only use autopayment sparingly. For bills that are a regular amount every month, like my hydro bill, or my gas bill. I can't justify to myself why I would grant access to something with an ever changing amount. What happens if there is a bad charge on credit card, and you are late checking the bill? That money is already out the door. What happens if a sudden unexpected expense on the credit card suddenly leaves you with not enough money to pay your mortgage or rent?
His 2nd point about the transmission lol that's why you have an emergency fund. You can have an emergency fund and a CC at the same time lol
Honestly, this is one of the best things about having an AmEx, particularly their luxury cards. Since they’re charge cards, you HAVE to pay back the full amount.
Soooo… You’re giving a bank a premium when you admit you have the cash in full??? You go with your bad self.
@@SidewaysEightSix LOL!
@@SidewaysEightSix I guess you don't understand how charge cards work.
What I do with my Visa...and way less membership fees.
@@markg999 What I do with a debit card and NO membership fees.
Ive paid off my credit card monthly since i was 19 because i thought i had no choice. That being said, i have no issues with credit cards
It's always the Ramsey way or No Way!
Dudes who hate Debt and also hate Debt Forgiveness more make me sick.
You ARE sick. Nobody makes you sick. You are that way naturally.
I really wished I had known this 10 years ago when trying to buy a house! I had over 200k in my investment account, but still couldn't qualify for a mortgage! Your score has nothing to do with wealth!
That advice if followed works just fine. Much like the Ramsey advice
Behavioral science will tell you it cannot be followed in the way it's explained.. Ramsey's advise takes into account human behaviours
@@alexc5369 well Ramsay is wrong. I pay my entire cc bill all the time and still splurge when I want and always grow my savings
@@MyCatChloe we do more of the things we incentivise, goes for spending aswell, good that you can pay if off each month but that doesn't mean you are not over spending in the long term
Just because Dave didn't know how to manage debt and went bankrupt doesn't mean everyone will.i know of more people that started with almost nothing and now have a 300 million+ net worth like Dave.they all did it with real estate and borrowed money.Dave is the only person I know of that has done it without borrowing any money and that's good that it worked for him.
Dave didn't get rich in real estate he got rich in sales and still makes his money in sales his investment advice is terrible.
Dave did a study and found that most millionaires did it his way. Not all, but most.
Probably only surveyed millionaires that listen to him@@MsMockingbird06
The girl is annoying, tiktok advice is trash, the message is true! Use it as a debit n pay it off at the end of the month. Not hard to do! She never said use it to buy things outside of your monthly expenses
Worst advice on Tik Tok is factually 100% true😂
It's deceptive
No? It’s 100% accurate.
Just because people lack self discipline to not use them properly doesn’t make it true.
Follow a budget, be an adult and you won’t find yourself falling into the “psychological trap” of spending more on the card than you would with cash.
If you don’t have the discipline and will power to not overspend, don’t get a CC. You would be wise not to.
Many people have the discipline, though. -10 year CC user that is financially secure.
Doesn’t make it false**
I still don’t know why they act like it impossible to have a credit card, enjoy the benefits, and not carry a balance. I’ve been using credit cards for almost a decade. Only carried a balance for 6 months 1 time on a 0 interest card to pay for groceries when I took a new job that had 3 months of no pay and ended up landing me in a $300k+ per year position.
Nothing wrong with this. We do this as well. NEVER pay interest.
This is one of the best videos this Channel has produced haha.
TikTok is a cesspool. You’re better off deleting it and never turning back ✌🏽
I totally enjoy my cash back and my "free"vacation without my conscience bothering me because my neighbor is having trouble managing his debt Dave Ramsey always talks about being a responsible adult and that means not spending money you don't have and not borrowing what you can't afford to pay back that's the way the system is designed and I take full advantage of it as do most people who manage money well and become wealthy so play the game and play to win the game is not rigged if you lose you're not playing it right those who win this game know how to play and those who lose don't that's all
Why are these financial advisors teaching people to be scared of having access to money instead of teaching people to be responsible with money 🤦🤦
💥 goes the 🧨
Access to others peoples money. Yeah 🤓
@@timothygibney159 just say youdont understand finances it's quicker
How much do I need to pay to see the Ramsey crew do some TikTok dances?
This comment needs to be at the top
@@joshlogue9292 At the top of useless comments. Yeap.
😄
Totally agree. If you are an alcoholic, don’t have alcohol in the house or go to bars. However, I use mine wisely and use my rewards. Best reward is a VIP lounge in an airport. A few drinks plus food will cost you around $200, and it’s free. You gotta know how to play the game, but being 17 STAY AWAY FROM THEM!
Yeah I agree. I’m 21 and I’ve had no problems. Pay it off monthly and have earned a ton of rewards.
20 with no cc problems or debt. Definitely think that travel rewards are backwards because they encourage you to travel and you may spend more or take a brake from work loosing income but cash back is great.
This guy is financing his favorite bank and is “too smart” to even realize it. You do you boo
@@SidewaysEightSix my card costs $600 a year and the VIP lounge yearly access costs $600. Plus, I get $100 global entry, $120 wireless cash back, $200 airline fees back, $100 Fedex back, 24/7 platinum concierge, and other perks. How am I financing my bank??
@@theforeignerinamerica1817 Amex Platinum. Good choice. I’m a Chase man myself…
I’ve been using my credit card like this for years and years. I NEVER pay interest, have not for probably 20 years or so, and I always get back quite a bit in cash back points. I put everything on there, just paid my house insurance premium on there. I have the money right in the bank transferred yesterday. as soon as it isn’t pending any more I’ll pay it off. I am extremely self disciplined, though. If I can’t pay it off when the bill comes in, I find another way to pay for an emergency expense. I use my EMERGENCY fund to take care of things like car repair. Using credit cards is a luxury for people who have a financial cushion. Poor people need to stay away from them.
George looking like dave with that shirt haha nice ...
Why the F cant you pay it off every month? I have hundreds of thousands of airline miles, I'll never pay for a flight again, and the bank isn't getting any interest on my CC. Is this advice for smooth brains?
Whenever someone says Cashback, i somehow think about a "Nigerian Prince" asking that you send money so you get money....lol
“Okay, looks like you know your stuff” said no parent to a teenager ever
except when they want gender reassignment at 10 years old
@@ASouthernBoyCanSurvive"except when they (...) 10 years old"
The commenter wrote "teenager", which would exempt 10 year olds.
I bet the daughter will call The Ramsey Show in 10 years saying "I'm in a lot of debt. I shouldve never stood by my tiktok video"
No, she sounds responsible
I clear credit balances every week. I hate carrying cash. I love my Amazon points. However, when I was younger, I was an idiot and I got into trouble.
"Don't use social media to get your financial advice", said the guy who is using social media to give financial advice.
😂😂 my thoughts exactly 🙄
Peter Lynch used to say that when everyone has a stock tip wherever you go, it’s time to sell. Whereas if you go to a party and talk about stocks and no one wants to talk to you, that’s the time to buy!
I used my card like that for about a year and I didnt find the whole cash back thing was that great
Agreed. But I have a friend who does thousands of dollars worth of purchases for her church w her cc that they reimburse her for and she pays it right off. She racks up serious points this was
@@IzzyMakesMusic she sounds like the second coming of Warren Buffet
@@IzzyMakesMusic this scenario happened to me in smaller scale before. I often travelled with groups of friends or coworkers, I was frequently appointed as the “travel coordinator”, we used my CC for purchases and reimbursed me in cash. In concise, I bought my furnitures and home accessories from points.
The auto pay is what scared me. If you did not have the money in the bank when the payment is due the fees from it bouncing is giving to be insane.
@m.w4799much much much more likely your manual payment will fail due to forgetfulness than autopsy failing.
You should not be buying stuff that you do not have the money to pay for. Credit cards are for convenience and security not a payroll advance.
Even for our "Idiocracy" current levels of behavior TikTok is know to be the place for the biggest knuckleheads, I am, sadly, not surprised.
Actually this is exactly what I do and have done every month for almost 30 years since I got the card. Ive never paid a single cent in interest and I only buy things that I know I can afford. It works great if you aren't a greedy idiot.
Yep. The math still makes sense as long as you have a budget.
This show should be the only thing allowed on here, not other theories or false advice!!
She did not say a single incorrect thing. It’s just that most people have horrible impulse control. If you can set a limit and stick to it, maximize the free flights. I haven’t paid for a flight in several years from points alone.
The sad part is that most people will end up paying interest. We have a discipline problem. I own several credit cards and have never paid interest. But i also only spend money on it that I have the actual cash on hand to pay off (groceries, gas and other budgeted expenses).
What she said isn't wrong. That how I bought my first house, I built credit at young age.
Exactly. Me too! The truth is it's worse to have no credit than bad credit. The only way to build credit is to get a credit card and pay every month
It’s pretty funny when TikTok is more correct than Dave Ramsey on this particular topic
😂😂 true.
You sound like you're in debt
So how many millions do you have compared to Ramsey
"I won't let that happen." Famous last words
My cc hi water Mark was $27,500.
Now I paid if off. Now I have $0 debt
I paid cash for my home. I have large bank account. Life is good
Have had credit cards for almost 20 years and never paid a penny in interest. I'm far from a financial expect, but it can be done. Don't get out of control, don't spend more than you can afford.
My dad is 75 and is one of those people who does pay it off and has done that since 1978. He won’t go over to a debit card, no matter how much I try.
As a gen z, peers of mine laugh at the fact that I listen to “old channel” that consider in yt for financial advice while I laugh at them about tiktok financial advice 😂
I mean if you have the discipline I don't see why its a big issue?? I get most people don't, but if you do like me and my wife have done we have gotten over 10k in free vacation travel WITHOUT paying interest or spending more than we already would. Most people can't do this but don't say its impossible
This is exactly what I do and have been doing for years, though I am responsible. I use my CC to buy the things I buy every month anyway and yes, I get cash back. I pay it off every month and do not pay interest. Just transferred $1200 cash back to my personal account. Win/win. To say this is foolish across the board is...well...foolish. It's not difficult.
Exactly. I'm the same way and I have doe it for years. Plus, having no credit is worse than having bad credit. Only way to build that up is to get a credit card and pay it off every month
As a business owner that accepts all forms of payments, the costs of the CC processing fees is between 2-3%. The cost of your cash back and miles is baked into the cost charged back to the consumer. Your not winning with CCs, you’re breaking even at best.
And businesses aren't charging less when to customers who pay cash either so they are seriously being overcharged.
As a fellow business owner, I try to tell my clientele that I will charge a 5% fee on top of the their total if they decide to pay by using ANY source of plastic (CC/DC) and they reply, “that’s okay, I get cash back” 😂😂
@@gianfrancoilliano my insurance wants to auto draft my acct to avoid paying them a fee so although I hate people auto drafting (because they take out the wrong amount and then I have to wait on them to reimburse me 🤦🏽♀️) I let them do it.
But at the store I see where I pay more for using a card. So would I be getting charged more if they are bumping the price up to cover card transactions fees when I'm using cash?
@@gianfrancoilliano I’m surprised your business hasn’t been losing money from that.
@@esonon5210 why would my business lose money?
Credit Card Interest Rates in New Zealand are at 24%. On the plus side Term deposit rates are at 6%
Can be done, just have to be diligent. You should have a robust emergency savings beforehand so you never use the cc for emergencies. You should check the balance every week to make sure you aren't overspending. Always pay off the full amount. Etc. For most, that discipline requires time to develop before it's smart to get a cc.
I agree and it’s hardly ever mentioned. You should never get a credit card until u have a robust amount in savings and u should never get a CC until u have stable enough income coming in such that u are able to turn on autopay and not worry about it being on.
42 years old and have always paid my cc balance in full.
She's absolutely correct. Debt, in any form, is a tool. It can be used correctly or incorrectly. Stop trying to shame people with more restraint than you.
She gave great advice. Exactly what I did at 18 and now I have over an 800 credit score at 24. Just gotta pay it off right away. Plus if money gets stolen off your credit card it’s way easier to fix than with a debit card
I am 35, I have had the same credit card since 18, no fees, 3% cash back and free insurance on purchases and I’ve never not payed it off completely at end of the month. I make about 500 a year using the banks money, why would I use my debit and pay transaction fees?
She didn't really say anything wrong. But I also appreciate the idea that the plan doesn't always work out either.
That advise is what keep Ramsey Solutions in business.
Usually on the backs of others who couldn't afford it, if that's not the truth
That's actually wrong
Don't worry. They tend to be the same people politicians pander to with endless social programs funded off my back.
Oh well...maybe they should have leaned when you buy something you owe it haha.
SOME PEOPLE DON’T CARRY A BALANCE. SOME PEOPLE ARE RESPONSIBLE.
To be fair. I've lived that strategy of credit card for 20 years. I've also attended daily mass for 20 years and run marathons, stayed a V until marriage at 29 and now have 5 children that i take to daily mass and homeschool. So i don't think i would recommend this strategy to most people.
I've travelled a LOT on my ALaska Airlines card - but I'm very disciplined and I pay it off EVERY MONTH !
Better advice would be to go visit Ramsey sales people to buy loaded financial products