Lots of rewards pay for by the poor that cant pay of the credit. You can say its there own problem but lats be honest credit card companys like to make you think there a good ider for you
@@migelskeryou are correct, these companies are experts at persuading people to acquire things they don't need. But ultimately, that still falls on the naive consumer 🤷🏾♂️
@@anthonys5568I've heard that before which can make sense but I'd like to look into the details too. Do you have a name of a study or article where I can find this info?
I only use my debit card for booking flights and hotels- nothing else. Gas , food are paid for in cash and bills are paid for electronically. It’s a better way to handle your money and actually save
My parents admit they were really irresponsible with a credit card, but my husband was taught financial literacy really well and we are able to use one really responsibly. It really does depend on the person
"Most people can't be trusted with credit cards," Not exactly correct. About 70% of cards are paid off every month, i.e. they are used by people that make purchases, get reward points, pay the balance in full and pay no interest.
@@Navy35Americans really need a financials course in highschool. What's natural to me is completely lacking in those who use credit cards as a means to get a loan. I've never paid interest on a credit card.
I use to be terrible with credit cards but the past couple years I’ve been paying off my balance every month and the cash back I get is a game changer.
The main benefit is that a credit card isn’t tied to your checking account. I rarely use my debit card. I prefer using the banks money and just paying it off at the end of each week. It works for me and I feel better knowing if someone steals the card info and uses it, they’re not impacting my bank balance.
@@itsnewzie I went to Greece last year and I paid for most of the airfare with my points. It's free money as long as you pay off the card in full every month.
But with debit card the money leaves your account at purchase time and reimbursement may take a while. With a credit card your money isn't gone at purchase and you can dispute and don't pay till the bank comes back on their investigation.
@@user-wy2ud4xx5qas mentioned above, I also got reimbursed the same day on my debit card after I realized they had cloned it or stolen my information to make purchases.
You have to have discipline to have credit cards. People saying that credit cards are bad are usually in financial trouble! Live within your means, no matter how much money you make!
You need discipline to have a debit OR credit card. Credit cards are bad, it’s borrowing money and paying in installments, usually people dig such a hole they do the minimum payments and stretch out over a longer period of time. Debit cards are buy now, pay now. They Make you live by your amount, which is a great and not so great thing. But it beats ever OWING anyone anything.
My boss told me a long time ago to use only a credit card for all my purchases. Never a debit card! He was right. That debit card is your money and the credit card is the banks money. I pay my credit card bill in full each month and collect bonus points that are turned into cash.
Same here. I've always wondered why people think that credit cards are just free money. It's like an illusion, where temporarily you don't feel the hit in your wallet, but when the statement arrives... Well, it's time to pay back and the illusion is over.
Sometimes it’s medical bills. My wife was a high risk pregnancy and we were paying thousands per month to the hospital. Life is more important than money. I’d go into debt for my wife’s health repeatedly if I had to.
@@Dinosaursof that's understandable, in those situations where there's an emergency, for sure using all your credit will be the only option to cope with.
It depends on the credit card. People should always read the perks of their cards, it only takes a couple of minutes. A lot of them will have phone insurance and travel insurance too,
This is actually totally false. Debit cards have the same fraud protections as credit cards. Visa even says so on their website. I spent most of my adulthood never using credit cards and i never had a problem disputing fraudulent charges with my debit cards with any of the financial institutions I've been with.
@@rioheatmeaning if you spent 200 dollars that statement period on that credit card the best thing to do is to pay that full 200 dollar statement on the due date if you pay only the minimum that would be considered carrying a statement balance and that’s when they charge you the usually ridiculous high interest rates
I had my debit cards stolen and a ton of money spent at shops and online before they got blocked. Called my bank the next day and they refunded all the money back so that point is BS.
Use the banks money, not your own money The risk is put on the bank and not you Some banks make you prove it wasn’t you or their internal investigation found that you are responsible for the charges Now you gotta fight for your money and you have a $0 balance so you can’t pay mortgage/rent, bills etc
I would hate to lose a lot of my money for a day. What if I had bills coming out on that day? Rent and car payment? Why not take the FREE LOAN that the bank offers via credit cards? It's the responsible thing to do.
@@almmason7No he won't be. He'd call her an idiot no matter what. He's horrible for advice in investing or credit cards for folks that are responsible.
in the country i live in, the debit card has security setup. if someone stole my debit card, they can't make payment because i need to approve the transaction via banking phone application every single time.
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
@@salmanman2699 yeah. American Express has checking accounts, and their debit cards earn transferrable points, but only at 0.5 points per dollar spent.
I pay for everything with my cc now, and pay off the balance each month. As much as I travel I should have picked the mile, but I did the cash back. I average about 25 bucks a month.
The advantage of credit cards is that if there's a dispute (card got stolen, mistake at the store, etc) the store doesn't have YOUR money yet. They have Visa's money. If you use debit card, the store has your money.
@@dennisbaker1003 Fair enough, but I think the basic point stands, which is that when using the credit card no money has actually left my account at time of sale. I like having that buffer in case of mistake or fraud.
@@dylanplumley280 Yep! That's not really problematic, because end of the day you are borrowing money. It only gets rough if you start accumulating balance, that can get out of hand! I prefer to use credit card as if it were a charge/debit card.
I find it fascinating hiw much the US relies on the credit. I do understand there is logic in the system, but it honestly seems like a trap for people who will overspend and then have a problem repaying it. And since credit cards are still popular, it means that they get way more from people's interest, then they loose when somebody's card is stolen.
If you have a tendency to overspend or be irresponsible, it doesn't matter if it is a debit or credit card you use. Regarding interest, as long as you pay off your account during the statement date, no interest is charged. The only regret I have is why I didn't use credit cards earlier as I fly mostly for free and stay in hotels for free because of rewards earned thru credit cards.
It is a trap, research has proven people spend more with a card vs cash. The US banking system is basically created so people think they need to use credit for everything.
@@MichaelDoran23 doesn't matter, I pay off my credit card statements in full every month, no interest accrued, get the rewards and I go plan my next travel using those rewards. See how that works out if you know how to play the credit card game? 😄
Which is a scam and only serves to build financial creditability to big scamming banks to take out and rack up more debt. You just paid your mortgage and all your debt early... -44 points
@@ksharp1979 Yup. Europeans goverment make ilegal for Banks to offer you best products just because of your credit score. As a whole the concept of Credit Score is basically an excuse for you to use your credit credit and see if you forget to pay your debts in time so they might charge you interests. Then, if you have paid in time you'll have a great Credit Score. Here in Europe they just watch your finances in order to approve you a Mortage for example. If you've been using credit over and over instead of debit it basically tells the bank you struggle to face payments in a day by day basis and need for external entities to help you pay your debts. My wife and me have used credit maybe once or twice in the past years but got a great Mortage deal because we had stable jobs for over 6 years, responsible finances, a good history of salary increases, etc..
Better to get a cash back rewards card. Pay off your monthly balance and rake in that cash back. They pay you to buy the stuff you were already going to buy.
I have enough junk, I'd rather buy experiences. And bank points transferred to airlines and hotels carry a significantly more valuable redemption rate.
yeah this is also increasingly changing as we becoming more digital. with a lot of my peers, myself included, cash can feel like Monopoly money. if I don't see my account balance go down then I didn't spend anything
Yeah, I never understood this borrower society and mentality and refuse to partake in it. Even with my parents, I still never like the idea of always owing someone else something. I'd rather just make my money and spend exactly what I have on exactly what I need and want. That's it. None of this extra BS. This mindless consumer, slave to the system mentality.
@@missyperry9510 Almost everyone has to take a loan for a house but no one ever needs any other loans, credit cards or lines of credit for anything at any time.
Of course our debit cards work just like a credit card, the difference is that if my credit card is compromised, I can receive another card asap and I’m not responsible for the fraudulent spending the thieves did…if however, I’m using my debit card and it is compromised, the bank investigation in some cases can take months, meanwhile, you cannot handle your money as you are accustomed & the bank won’t necessarily clear the fraudulent charges. The credit card usage, if done correctly, is merely using the credit card banks funds just like you’d use your own bank account & you just pay off your spend in full before any interest is applied. It’s not that we have “issues” with using our debit cards, we are benefiting from rewards points, cashback incentives, etc and still not paying interest AND protecting our debit accounts from fraud. Debit cards do not offer the rewards that credit cards do (at all)!
Also it's _your_ money stolen in case of fraud and you're the one burdened to convince the bank to fill it back. With credit cards it's the bank's money that goes missing and they won't need any convincing to go find who's at fault.
The rewards depend on the credit cards. The metal credit cards have the most and the benefits for these are on each cards website . Private club lounges, free breakfast at high end resorts, uber/ lyft , live and travel like royals for free or high quality discounts with insurance coverage in 10s of thousands. Every time you spend you ger something for free that average Joe pays through the nose for. Or the poor doesn’t even have as an option or is banned from accessing.
Yeah but the spending min is thousands each month and these types of credit cards are only available to the rich because they know they can afford to spend thousands each month so they throw freebies as incentives for buying at their places and have connections w the credit card companies to after this amenities 😅 ... I once had a chance to dine at Hilton hotel and all the food was free and the food was superb, they even had horchata w tiny ice 🧊 cubes that made it taste like 1000x better 😂 and the food was amazing ofcoarse 😊
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
@@LeMagnifiqueDoubleAgent-cj4zo Even if you are rich making better financial choices are always welcomed, that's why and how you become rich. In addition, rich is poorer than wealthy.
Its extremely important to figure out if your a credit card person though. 1. Are you spending more on the card than you can actually pay off in the month. 2. Do you keep spending on a card you didnt pay off last month? 3. Are you spending more than 30% of your credit limit each month? If the answer is yes to any of those, cut up your credit card.
Pretty sure the card company would flag a bunch of low level purchases in a short amount of time otherwise you’d probably notice the slew of purchases before they got to do it 100 times
This is good advice. We never carry a balance, are protected against fraud, and receive good cash back rewards. This from someone who is debt free and retired.
As a disclaimer - I come from the great great country of Europe. And a second disclaimer, we don't do credit cards. I mean we have them, but they are extremely rare. Here's a little secret from someone who works at a bank. If someone steals your debit, you report it and can say from what point the transactions made on it were not by you, you're not responsible for it either. If those card transactions weren't authorized (your PIN wasn't entered or you didn't authorize an internet purchase in your app/by sms code), you're very likely getting that money back and unfortunately the bank is liable. And even if they were authorized, a lot of the time clients settle with the bank on a 50/50 liability. The condition is you have to make an official report to the police first. Doesn't work like this everywhere, but I bet you it does in many many places.
@@cawheeler27 I’m both European and American (Polish-American to be precise)… America is the richest country overall, but when it comes to standards of living we fall short 😅 Also, Americans are drowning in debt. 2/3 of the nation lives paycheck to paycheck. Trust me, it isn’t that bad in Europe…
They do, but the debit card spend is gone from YOUR account the second it's swiped. With a credit card, it's not your money that's gone and you've got a few weeks before the payment is due so you can get it removed from the statement.
Yeah they do because Visa and Mastercard are payment networks not banks. When you dispute a charge it’s with your bank not visa and Mastercard. Those companies hold some responsibility for fraud, but the bulk of it comes down to the bank. When you file a claim with a credit card the bank will write it off and they can pull many back through chargebacks to the merchants. So you will usually see most credit card transactions resolved in hours or days. The charge is reversed for the customer instantly, there are laws around credit cards that don’t exist for debit cards which is where the max responsibility is capped at $50. But with debit cards it is very much bank-dependent. These transactions are more like ACH transfers to merchants. It is real money leaving their bank. Therefore it is harder for the bank to get the money back. And since it’s your money, not theirs, they are also less incentivized to do so and won’t just “write it off” like they do with CCs. The process can take weeks or months to complete and even if it completes in your favor, you still don’t have any of that money in the meantime (banks will sometimes extend up to $250 or $1,000 max in the meantime for goodwill. But again, it’s not as regulated as credit cards so this is bank dependent. Thats why credit cards are safer. If you really want to use a debit card go for it. I use a credit card for every purchase for this reason. I have one debit card in my wallet that is an isolated account that I only keep around $500 in just for cash emergencies or the rare merchant that requires debit. But if that card gets stolen it’s not my main account. My main checking accounts have debit card numbers that I never type online or use at stores. I keep them at a safe at home for emergencies only.
If you exclusively use debit cards make arrangements for the bank so that only a certain dollar amount can be spent each day and if you plan on making a larger payment than what bank know and they can temporarily increase that limit
This is not universally true. In Europe we have insurance on debit cards and are not liable for any of the amount spent on a stolen card provided that it is reported. And I've got cash back on my debit card too
The difference is that your money is still tied up in your account while it is being investigated. So you could be out that money you need for rent or whatever for months vs a credit card never taking money from your actual account during that time so you never have to worry about it.
It's wrong. I use credit cards over debit cards to get the points, but almost every major bank in America takes fraud liability on debit cards, just like credit cards. What they're describing hasn't been the case at most banks for decades.
Debit cards absolutely do NOT have the same protections as credit cards. Wait until yours gets stolen or cloned, and you'll find your bank account drained out really quick, and then you have to fight your bank to get the money back. I got rid of mine many years ago. Today I carry one credit card, and an ATM only card.
This is false in the majority of the world. Yes, you have to deal with a longer process in the case of debit card fraud, but legally everywhere you do have protections.
@@LeMagnifiqueDoubleAgent-cj4zo banks can and do on occasion refuse to refund money from debit fraud. But assuming one does get the money back it could take a week or two. That's really not convenient when the mortgage is due, and you need groceries.
@@thereallantesh, Well, yeah, that would refuse to refund the money if it appears you are responsible for the transactions, but if it looks like you aren’t, then they refund the money. Most banks also offer provisional refunds immediately while they do their investigations, which indeed could take some time
Or pay actual cash if you care about the business staying in your town, save them the 3% fees lost to the credit company.. That can make or break a small business!!
Personally I always pay cash. If we are out and my wife pays with her card, I'll leave the tip in cash. I'm a very large tipper, usually 50%-200%. I know they gotta pay their bills.
that's why she is rich, because she knows how to use the system to her advantage. Rich people don't pay for their flights or hotel stays because they know how to use their credit cards.
No, some of us only pay cash. One major factor for me is that I can't see well so I pay cash and don't need to worry about punching any numbers or anything in to a screen I can't see. My wife does use a debit and credit card and she writes them out a check at the end of each month (yes, we are still check people).
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
Some businesses add in a fee for credit card transactions but not usually unless it's a small business making a business to business transaction. Some states like California made it illegal for stores to add on a fee for using a credit card. I think a fee is a good thing because stores like mine otherwise need to consider credit card fees into their prices. But some consumers get angry if there's a fee added to the price so it can really turn customers off. In Asia, it's very common for restaurants to charge fees for using credit cards. I usually get about 4.5% so even those 3% fees are still worth it. Plus a credit card dodges exchange rate costs so i normally prefer to use them. And accounting for business expenses is far easier with a credit card. From a vendor point of view, cash is risky because the employee might steal from you. One cool thing about thailand is you can pay bills and vendors with your phone right out of your bank account and nobody pays any fees for it. But the credit card companies are fighting hard against that in America and that's why you only have a crappy service like Zelle. Here, we just scan a QR code and pay.
As they should. Why should vendors foot the bill for all this convenience? It’s the customer enjoying the convenience, not having to carry cash around. At very least, it should be split 50/50 with the vendor and customer.
I get cash back frequently on purchases I make by point redemption! It's like getting free money dollar for dollar, while making purchases I would make anyway. 👍🏻
I prefer to keep a low balance on checking account and frequently draft money from savings to avoid being hacked. For a while, I did only use Credit and pay it off. It was easier to track monthly expenses that way.
IF you are responsible! IF IF IF IF... When you get in a jam and you can't pay it off at the end of the month, that's when the problems start. Credit cards are a joke, the whole system is a joke
For almost everyone using a credit card is nothing but trouble. People do not do what you’re telling them to do. It’s no different than a doctor saying you can get all your vitamins from food. Yeah.. you can, but they eat crap. Most people get overextended on their credit cards. Use cash…. Sure you miss out on some perks, but you’ll NEVER be in debt.
I was actually surprised by the statistics on how many people never carry a balance on their credit cards. Last year, fewer than half of Americans carried a balance on their credit cards.
Has nothing to do with the doctor statement. I am fine eating just normal food, no a doctor didn't ask me to, but it's always better to get all vitamins from food
You'll be correct if you have a spending addiction. Some people have discipline. So, if your an addict type stay away from CC. But, if your discipline and spend only if you can pay in full, think carefully about it. Remember, their are people who are gaming CC industry and those who get game by the CC.
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
@@Evil_Puppy48 It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
The same protection exists in debit cards. Even though you can get some cash back or some rewards, It comes at high risk, which most people fall to, and even if you don't, you basically indirectly legally take money from others that fall into this trap to fund your rewards.
I almost 40 years I never use credit cards, I don't have any debt and I have money in the bank and starting my own small business saving money and buying times on times my equipment., I don't expend any that is not in my budget , is important to know how use wisely the money for grow
He only says that though because the average person is incompetent with handling money. If you are semi competent with handling money, than using credit cards like this is extremely beneficial.
@@Shark9637 It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
I have had my credit card hacked before, and Yes! Credit card company comes in like a boss! Relives you of the debt, and goes after the criminal who stole from ya!
They don't "have" you unless you let the balance roll over month to month. If you pay it off every month, they don't make any interest off you. I pay it off at least twice a month, which keeps my used credit amount low- it's great for my credit score.
@@edennis8578 No one is completely automatous and by default one day will miss a payment or more and rack interest. It's reason why financial bureaus bank on the exploitation of our nature and psychology. It's why it brings in billions per year. It's why as of 2022 approx. 51% of Americans are in credit card debt. This number is expected to rise higher in the next 15 years.
@@edennis8578It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
“Carrying a balance” means they didn’t pay off the full amount on their bill and it carries over to the next month, where they’re charged interest. I guarantee you most rich people use credit cards to take advantage of the rewards or simply for the greater fraud protection. “73% of millionaires have never carried a balance” simply means they paid off their entire bill every month, not that 73% of them don’t use credit cards.
Regurgitating Dave Ramsey propaganda much? 😅😅😅😅 The vast majority of the 'millionaires' that your God Ramsey has done his survey on, are actually 'net wealth millionaires'.....there's a difference.
I've never had a credit card. My wife does have 2 but I do not and they are paid off. I don't think 1 has ever had anything on it. My business does use a debit card online because that is the only way to pay for things for my business. The company just now started accepting money transfers but I am already set doing it with a debit card. It gets paid with a debit card that 1 time a year I have to pay for it.
The part about the card being compromised is true ... mostly (you are protected from fraud but you will be out the money until it is resolved), but the rewards thing isn't. Rewards points just encourage you to spend more and 90% of people will plan on paying off the balance each month but end up racking up debt.
That's also how I built up my credit score from the 400s to almost 800. I would use my credit card even though I didn't have to. I'd pay it off within days of my purchase. Two years of that and my credit score is now amazing!
The thing you're forgetting is rich people live within their means. Having a credit cards teaches you you can have anything you want whenever you want. It's the opposite mentality you need to build wealth
Just paying your balance off every month doesn’t mean the card is going to benefit you completely. I understand that businesses will pass the transaction fees onto the consumer but the key is to maximize rewards and you can even earn referral bonuses and spending bonuses. You have to learn how to play the game, not just paying the statement balance.
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂 Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
WOW!!! Thanks Erika... I didn't know this, so l stayed away from all Credit Cards because I had that same mindset as your alto-ego. Now, I'll check to see what deals are out there💖
If you spend abroad, check your FX rate. Credit card currency conversion fees are pretty terrible. Sometimes there are also foreign transaction fees charged to the card owner and not the merchant.
2% cash back pumps if you run a company. I spend about 35k a month on my credit card for business, and the 2% cash back was used as a down payment on a new van for my newest employee 🙃 Credit cards are the way!
A lot of people have a different mentality when it comes to credit cards. People tend to spend more using a credit card as a debit card is using your own money. When you use your own money, you're more aware of what you actually have. If you're card declines due to insufficient funds, it means you can't afford it. Also, I don't put a lot of money in my debit card in case of theft. In New Zealand, we also have the EFTPOS system which always require a pin. These cards can't be used online so that's when I would use a debit card. By the way, airline miles and cash back never made anyone rich. People that spend that amount of money usually can pay for their own airline ticket.
We had a car broken in too in the parking lot of Boomers few years ago… They took everything that was in the car. Was around Christmas time. Merchandise from Macy’s my purse. For my Debit card and filled their car at Arco gas station. I was able to block my card thank goodness.
I generally get about $10,000 a year back in rewards because I pay everyone of my bills with a credit card too! Electric gas water trash literally absolutely everything is paid on a credit card that I get cash back
The $50 liability limit also applies to debit cards. I worked for a major bank's customer service once upon a time. I handled these claims. You will usually get a probationary credit for the fraud charges which will be made permanent once the fraud team verifies your claim is legit. The benefit of using a credit card is that your checking account balance isn't automatically affected.
I’ve been paying all my bills with credit cards for more than 2 decades and pay it off in full every month. Lots of rewards.
Yes, but if you have actual money, you don’t need “rewards”
Lots of rewards pay for by the poor that cant pay of the credit. You can say its there own problem but lats be honest credit card companys like to make you think there a good ider for you
And those cc transaction fees of, usually 2-6% plus 25-30 cents are passed along to you and all of us.
@@LeMagnifiqueDoubleAgent-cj4zoor you can use rewards and STILL have real money...
@@migelskeryou are correct, these companies are experts at persuading people to acquire things they don't need. But ultimately, that still falls on the naive consumer 🤷🏾♂️
This only works if people are financially responsible which sadly most people aren't.
Clinical studies actually proved that people pay more using a credit card.
@@anthonys5568 wouldn't the same psychology apply to using a debit card?
@@anthonys5568I've heard that before which can make sense but I'd like to look into the details too. Do you have a name of a study or article where I can find this info?
@@anthonys5568clinical studies have proven people are dumb
@@anthonys5568Yeah but how much percentage do they pay on time without going into credit debt? 😂😂😂
Most people can't be trusted with credit cards, but they can be very useful if you can live within your means.
I only use my debit card for booking flights and hotels- nothing else. Gas , food are paid for in cash and bills are paid for electronically. It’s a better way to handle your money and actually save
My parents admit they were really irresponsible with a credit card, but my husband was taught financial literacy really well and we are able to use one really responsibly. It really does depend on the person
"Most people can't be trusted with credit cards,"
Not exactly correct. About 70% of cards are paid off every month, i.e. they are used by people that make purchases, get reward points, pay the balance in full and pay no interest.
@IdRatherBeDiving-vr5gk where did that stat come from? We are in a debt crisis in this country.
@@Navy35Americans really need a financials course in highschool. What's natural to me is completely lacking in those who use credit cards as a means to get a loan. I've never paid interest on a credit card.
I use to be terrible with credit cards but the past couple years I’ve been paying off my balance every month and the cash back I get is a game changer.
You've reached financial maturity and are responsible now, that's great.
IRL: "Lady, just wrap up my purchase and restock more merchandise."
😂
😂😂😂
IRL she would be asking you to sign up for a store credit card
IRL, the same people could be better with money buy just listening, and doing a bit of research.
This isn’t irl, this is a financial lesson
The main benefit is that a credit card isn’t tied to your checking account. I rarely use my debit card. I prefer using the banks money and just paying it off at the end of each week. It works for me and I feel better knowing if someone steals the card info and uses it, they’re not impacting my bank balance.
It's literally a FREE LOAN
Yup! I pay my balance off each week and enjoy my points.
@@itsnewzie I went to Greece last year and I paid for most of the airfare with my points. It's free money as long as you pay off the card in full every month.
Debit cards have the same federal protections against fraudulant use as credit cards.
But with debit card the money leaves your account at purchase time and reimbursement may take a while. With a credit card your money isn't gone at purchase and you can dispute and don't pay till the bank comes back on their investigation.
@@user-wy2ud4xx5qditto. This is the only thing that makes credit cards valuable.
@@user-wy2ud4xx5q
I have only used the debit card for many years and in the situation like that my money has always been reimbursed the same day.
@@user-wy2ud4xx5qas mentioned above, I also got reimbursed the same day on my debit card after I realized they had cloned it or stolen my information to make purchases.
Btw... How do u prove a fraudulent spending on ur debit/ credit card?
You have to have discipline to have credit cards. People saying that credit cards are bad are usually in financial trouble! Live within your means, no matter how much money you make!
Yes. And a large number of people are in that boat. As in, it's not exactly a small problem that only a few people you know are dealing with.
Sound advice!
Income greater than expenditure is the formula for financial success!
That's a false distinction. You have to have discipline to have debit cards, too. But you never hear anybody talk about that.
You need discipline to have a debit OR credit card.
Credit cards are bad, it’s borrowing money and paying in installments, usually people dig such a hole they do the minimum payments and stretch out over a longer period of time.
Debit cards are buy now, pay now. They Make you live by your amount, which is a great and not so great thing.
But it beats ever OWING anyone anything.
My boss told me a long time ago to use only a credit card for all my purchases. Never a debit card!
He was right. That debit card is your money and the credit card is the banks money.
I pay my credit card bill in full each month and collect bonus points that are turned into cash.
it's baffling to me that people would use credit cards to buy things they cannot afford and then have to pay interest on it. amazing.
Same here. I've always wondered why people think that credit cards are just free money. It's like an illusion, where temporarily you don't feel the hit in your wallet, but when the statement arrives... Well, it's time to pay back and the illusion is over.
Like people that book entire vacations they can’t afford on credit… like what are you doing…
Sometimes it’s medical bills. My wife was a high risk pregnancy and we were paying thousands per month to the hospital. Life is more important than money. I’d go into debt for my wife’s health repeatedly if I had to.
@@Dinosaursof that's understandable, in those situations where there's an emergency, for sure using all your credit will be the only option to cope with.
Besides, if I am not mistaken there is some kind of insurance included for the product if you pay with credit
It depends on the credit card. People should always read the perks of their cards, it only takes a couple of minutes. A lot of them will have phone insurance and travel insurance too,
some yes correct
Yep I get insurance for car rentals on mine 😂
Lost luggage also covered
Debit too, banks are insured too I'm sure
This is actually totally false. Debit cards have the same fraud protections as credit cards. Visa even says so on their website. I spent most of my adulthood never using credit cards and i never had a problem disputing fraudulent charges with my debit cards with any of the financial institutions I've been with.
Debit cards may put hold on things. Like returns that money takes awhile to become available to use.
I do this. Just don’t carry a statement balance and it’s free money
Hello, what do you mean by carrying a statement balance exactly?
@@rioheatmeaning if you spent 200 dollars that statement period on that credit card the best thing to do is to pay that full 200 dollar statement on the due date if you pay only the minimum that would be considered carrying a statement balance and that’s when they charge you the usually ridiculous high interest rates
@@rioheat what @emsbrelopez0711 said is correct
It's not free. It's leeched from all the people who paid interest. 3rd party robbery
@@LawrenceTimme The people paying interest are aware of the interest. It’s not robbery at any level. I can agree that interest itself is immoral.
I had my debit cards stolen and a ton of money spent at shops and online before they got blocked. Called my bank the next day and they refunded all the money back so that point is BS.
Not all banks do this, and even if it was, youre still getting the points when using credit card
Use the banks money, not your own money
The risk is put on the bank and not you
Some banks make you prove it wasn’t you or their internal investigation found that you are responsible for the charges
Now you gotta fight for your money and you have a $0 balance so you can’t pay mortgage/rent, bills etc
Nah some banks won't. I'd know I got scammed showed the bank proof and had to pay the money that was stolen 😂😂😂😂
I would hate to lose a lot of my money for a day. What if I had bills coming out on that day? Rent and car payment?
Why not take the FREE LOAN that the bank offers via credit cards? It's the responsible thing to do.
That's not always the case. Most banks will put your funds on hold till they investigate
Dave Ramsey's watching
😂😂😂😂
This is the comment I was looking for 😂😂😂😂
Erika is responsible not in debt so he may be ok with this...most people are not this responsible. 😮
Dave’s premise is you will spend more on a CC. That’s valid if don’t live within your means or carry a balance. We don’t do either of those things.
@@almmason7No he won't be. He'd call her an idiot no matter what. He's horrible for advice in investing or credit cards for folks that are responsible.
Cash only. No hacking, and I found out that often if I do not have the cash on hand I don't need the article.
I know that's right.
Cheers to that. Cash is king!
Carrying a bunch of cash around is crazy, you're asking for trouble
@@evocati6523 That's because some people's credit's so bad, they can't even get a credit card.
What's the biggest thing you've bought with cash?
A car? A house? Incredible. Big claps for you, sir.
in the country i live in, the debit card has security setup. if someone stole my debit card, they can't make payment because i need to approve the transaction via banking phone application every single time.
In my country as well. However, someone can still use contactless payment in stores or a quick-transaction app (if they have the passord for it).
Yeah USA banks need this cause anyone can just buy online w debit cards and bam there goes ur money
@@xxkarlosxxxxxx7233 more like USA banks need people with brain...
Which country is this?
We can also do this in the USA it’s just an inconvenience for us to call the bank all the time since we buy and consume a lot more
I have never paid a dime in CC interest, never paid a yearly fee or a late charge. I am sure that i am not alone.
@@portobellomushroom u are not alone but u are in the minority
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
@@MrClassicmetalThere should be debit card rewards. Well, there are sometimes with some cards, but still suck compared to credit card rewards.
@@salmanman2699 To be clear, I was being sarcastic in my previous post.
@@salmanman2699 yeah. American Express has checking accounts, and their debit cards earn transferrable points, but only at 0.5 points per dollar spent.
I pay for everything with my cc now, and pay off the balance each month. As much as I travel I should have picked the mile, but I did the cash back. I average about 25 bucks a month.
Can you change it to the miles?
Cash back is better. You can use the cash to buy anything, including travel. Can't buy anything with miles.
Can't buy stuff, but services like airline seats and hotel stays are quite profitable redemptions.
The advantage of credit cards is that if there's a dispute (card got stolen, mistake at the store, etc) the store doesn't have YOUR money yet. They have Visa's money. If you use debit card, the store has your money.
It's not VISAs money. The money will cone from the bank issued card.
@@dennisbaker1003 Fair enough, but I think the basic point stands, which is that when using the credit card no money has actually left my account at time of sale. I like having that buffer in case of mistake or fraud.
And then you pay the balance of the credit card. So really they will get your money eventually.
@@dylanplumley280 Yep! That's not really problematic, because end of the day you are borrowing money. It only gets rough if you start accumulating balance, that can get out of hand! I prefer to use credit card as if it were a charge/debit card.
Not true. Maybe your bank sucks. I’ve been in debit card disputes many times and the bank reimbursed me the same or next day.
I find it fascinating hiw much the US relies on the credit.
I do understand there is logic in the system, but it honestly seems like a trap for people who will overspend and then have a problem repaying it.
And since credit cards are still popular, it means that they get way more from people's interest, then they loose when somebody's card is stolen.
If you have a tendency to overspend or be irresponsible, it doesn't matter if it is a debit or credit card you use. Regarding interest, as long as you pay off your account during the statement date, no interest is charged. The only regret I have is why I didn't use credit cards earlier as I fly mostly for free and stay in hotels for free because of rewards earned thru credit cards.
It is a trap, research has proven people spend more with a card vs cash. The US banking system is basically created so people think they need to use credit for everything.
No it does matter. Debit is physically whats in your account @@jaytee6586
@jaytee6586 someone has to be paying for your rewards tho surely?
@@MichaelDoran23 doesn't matter, I pay off my credit card statements in full every month, no interest accrued, get the rewards and I go plan my next travel using those rewards. See how that works out if you know how to play the credit card game? 😄
Thank you for all the info you give us in these RUclipss. You are a tribute to society.
We use our cash back rewards for Christmas.
Same
Good advice. But all those points are moot when you spend more than you have. And most people do.
For the debate re. credit vs. debit card. The added benefit to using a credit card, as Erica suggests, is growing your credit score!
Good thing Credit Score it's ilegal here in Europe 🎉
Which is a scam and only serves to build financial creditability to big scamming banks to take out and rack up more debt.
You just paid your mortgage and all your debt early... -44 points
@@SacredBlazeXxXwhat?😮
@@ksharp1979 Yup. Europeans goverment make ilegal for Banks to offer you best products just because of your credit score.
As a whole the concept of Credit Score is basically an excuse for you to use your credit credit and see if you forget to pay your debts in time so they might charge you interests.
Then, if you have paid in time you'll have a great Credit Score.
Here in Europe they just watch your finances in order to approve you a Mortage for example. If you've been using credit over and over instead of debit it basically tells the bank you struggle to face payments in a day by day basis and need for external entities to help you pay your debts.
My wife and me have used credit maybe once or twice in the past years but got a great Mortage deal because we had stable jobs for over 6 years, responsible finances, a good history of salary increases, etc..
A high credit score is awesome. It does not show how well you handle money, it only shows how good you are at borrowing it.
Better to get a cash back rewards card. Pay off your monthly balance and rake in that cash back. They pay you to buy the stuff you were already going to buy.
I have enough junk, I'd rather buy experiences. And bank points transferred to airlines and hotels carry a significantly more valuable redemption rate.
Studies have shown that a person will spend 12-17% more using credit than cash.
Those are the people that shouldn't have it
@@chrisflo24which is the vast majority of ppl
@@chrisflo24 Agree. Kids need to be taught money management skills as much as most anything they learn in school.
Sounds like a self control problem and not a credit card problem
yeah this is also increasingly changing as we becoming more digital. with a lot of my peers, myself included, cash can feel like Monopoly money. if I don't see my account balance go down then I didn't spend anything
I don't use a credit card because I don't have one. I never take bank loans in any shape or form and never am going to. And trust me, it feels good.
I know right! I'm 59 and have never had any kind of loan. I have no idea what that pressure feels like and never will.
Yeah, I never understood this borrower society and mentality and refuse to partake in it. Even with my parents, I still never like the idea of always owing someone else something. I'd rather just make my money and spend exactly what I have on exactly what I need and want. That's it. None of this extra BS. This mindless consumer, slave to the system mentality.
@@Vandicoup absolutely true my friend. If I can’t afford something, I just don’t buy it until I can.
You're lucky then if you paid cash for your home, most people need a loan.
@@missyperry9510 Almost everyone has to take a loan for a house but no one ever needs any other loans, credit cards or lines of credit for anything at any time.
I dont know what debt cards you all are using but mine doesn't have that issue. Works just like a credit, except im not borrowing money.
Of course our debit cards work just like a credit card, the difference is that if my credit card is compromised, I can receive another card asap and I’m not responsible for the fraudulent spending the thieves did…if however, I’m using my debit card and it is compromised, the bank investigation in some cases can take months, meanwhile, you cannot handle your money as you are accustomed & the bank won’t necessarily clear the fraudulent charges. The credit card usage, if done correctly, is merely using the credit card banks funds just like you’d use your own bank account & you just pay off your spend in full before any interest is applied. It’s not that we have “issues” with using our debit cards, we are benefiting from rewards points, cashback incentives, etc and still not paying interest AND protecting our debit accounts from fraud. Debit cards do not offer the rewards that credit cards do (at all)!
So you're turning down a one month interest free loan, you're a freaking genius. 😅😅😅😅😅😅😅😅😅😅😅😅😅😅😅😅
Also it's _your_ money stolen in case of fraud and you're the one burdened to convince the bank to fill it back. With credit cards it's the bank's money that goes missing and they won't need any convincing to go find who's at fault.
@@richardhastie1432 What do you need a loan for?
Im a Cashier and i just ask cash or card, i dont need to know if you have a credit or debit card 😅, as long as the payment goes through
The rewards depend on the credit cards. The metal credit cards have the most and the benefits for these are on each cards website . Private club lounges, free breakfast at high end resorts, uber/ lyft , live and travel like royals for free or high quality discounts with insurance coverage in 10s of thousands. Every time you spend you ger something for free that average Joe pays through the nose for. Or the poor doesn’t even have as an option or is banned from accessing.
Yeah but the spending min is thousands each month and these types of credit cards are only available to the rich because they know they can afford to spend thousands each month so they throw freebies as incentives for buying at their places and have connections w the credit card companies to after this amenities 😅 ... I once had a chance to dine at Hilton hotel and all the food was free and the food was superb, they even had horchata w tiny ice 🧊 cubes that made it taste like 1000x better 😂 and the food was amazing ofcoarse 😊
@@xxkarlosxxxxxx7233 Some of us don't spend thousands of dollars a month. Why pay annual fees anyway.
You would also have to already utilize the card services for a while and spend thousands to qualify for it.
I always pay with CC. I like controlling when the money comes out of my account. I always pay off the balance.
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
More people need to realize this.
This is only true in the US and, besides, if you actually have money, you don’t concern yourself with “rewards” anyway
@@LeMagnifiqueDoubleAgent-cj4zothat’s not true. Just because your rich, doesn’t mean you need to waste money
@@Evil_Puppy48, I didn’t say you need to waste money, but I did say you don’t care about “rewards”. You see the difference?
@@LeMagnifiqueDoubleAgent-cj4zo Most people who go on business class are actually using their points.
@@LeMagnifiqueDoubleAgent-cj4zo Even if you are rich making better financial choices are always welcomed, that's why and how you become rich. In addition, rich is poorer than wealthy.
Its extremely important to figure out if your a credit card person though.
1. Are you spending more on the card than you can actually pay off in the month.
2. Do you keep spending on a card you didnt pay off last month?
3. Are you spending more than 30% of your credit limit each month?
If the answer is yes to any of those, cut up your credit card.
To be clear, legally, it's $50 per incident. Meaning if someone spends $45 a hundred times you can still be on the hook for $4500.
Unless they hold a grudge against you, I guess they'd rather spend $100k once xD
Pretty sure the card company would flag a bunch of low level purchases in a short amount of time otherwise you’d probably notice the slew of purchases before they got to do it 100 times
Not with capital one they have zero liability. You dont pay anything.
You should be able to catch it long before they spend that much on those increments unless you just don't check on your credit card statement
This is good advice. We never carry a balance, are protected against fraud, and receive good cash back rewards. This from someone who is debt free and retired.
I was trapped in perpetual financial ruin last year, til I sold my house and now I’m debt free. That’s just not something I want to go through again
As a disclaimer - I come from the great great country of Europe. And a second disclaimer, we don't do credit cards. I mean we have them, but they are extremely rare.
Here's a little secret from someone who works at a bank. If someone steals your debit, you report it and can say from what point the transactions made on it were not by you, you're not responsible for it either.
If those card transactions weren't authorized (your PIN wasn't entered or you didn't authorize an internet purchase in your app/by sms code), you're very likely getting that money back and unfortunately the bank is liable. And even if they were authorized, a lot of the time clients settle with the bank on a 50/50 liability. The condition is you have to make an official report to the police first.
Doesn't work like this everywhere, but I bet you it does in many many places.
unfortunately, there are banks in the Philippines that doesn't hold themselves liable for such. if you loose your money that they keep, it's you fault
Europeans don’t use credit cards as much because they’re poor. Since Americans are significantly wealthier, we have much more credit availability.
@@cawheeler27 significantly wealthier and yet you have way more homeless people than Europe...
@@cawheeler27We, Europeans, are poor in debt 😂
@@cawheeler27
I’m both European and American (Polish-American to be precise)…
America is the richest country overall, but when it comes to standards of living we fall short 😅
Also, Americans are drowning in debt. 2/3 of the nation lives paycheck to paycheck. Trust me, it isn’t that bad in Europe…
Erika, you’re wrong 😕. Even on Visa and Mastercard’s site they say they provide the same benefits to both debit and credit cards.
They do, but the debit card spend is gone from YOUR account the second it's swiped. With a credit card, it's not your money that's gone and you've got a few weeks before the payment is due so you can get it removed from the statement.
Yeah they do because Visa and Mastercard are payment networks not banks. When you dispute a charge it’s with your bank not visa and Mastercard. Those companies hold some responsibility for fraud, but the bulk of it comes down to the bank. When you file a claim with a credit card the bank will write it off and they can pull many back through chargebacks to the merchants. So you will usually see most credit card transactions resolved in hours or days. The charge is reversed for the customer instantly, there are laws around credit cards that don’t exist for debit cards which is where the max responsibility is capped at $50. But with debit cards it is very much bank-dependent. These transactions are more like ACH transfers to merchants. It is real money leaving their bank. Therefore it is harder for the bank to get the money back. And since it’s your money, not theirs, they are also less incentivized to do so and won’t just “write it off” like they do with CCs. The process can take weeks or months to complete and even if it completes in your favor, you still don’t have any of that money in the meantime (banks will sometimes extend up to $250 or $1,000 max in the meantime for goodwill. But again, it’s not as regulated as credit cards so this is bank dependent. Thats why credit cards are safer. If you really want to use a debit card go for it. I use a credit card for every purchase for this reason. I have one debit card in my wallet that is an isolated account that I only keep around $500 in just for cash emergencies or the rare merchant that requires debit. But if that card gets stolen it’s not my main account. My main checking accounts have debit card numbers that I never type online or use at stores. I keep them at a safe at home for emergencies only.
@@austina4189the debit cards here have password, I feel bad for those whose debit card doesn't have one
If you exclusively use debit cards make arrangements for the bank so that only a certain dollar amount can be spent each day and if you plan on making a larger payment than what bank know and they can temporarily increase that limit
You can do that easily yourself with the app of your bank in the Netherlands
Ive gotten enough cashback to buy myself nice gifts.
If you are doing okay financially, use your credit card for sure.
This is not universally true. In Europe we have insurance on debit cards and are not liable for any of the amount spent on a stolen card provided that it is reported.
And I've got cash back on my debit card too
The difference is that your money is still tied up in your account while it is being investigated. So you could be out that money you need for rent or whatever for months vs a credit card never taking money from your actual account during that time so you never have to worry about it.
@@kerrydaniels8460 Banks in Europe don t take that long and offer more consumer proiection so you will not have those problems.
That wig is everything. 😂😂
I’ve been telling everyone I know this for YEARS!! Such great advice!!
Same here. It's that zero liability feature and then most wonder interest is so high on a credit card. That's why. UNSECURED loan.
It's wrong. I use credit cards over debit cards to get the points, but almost every major bank in America takes fraud liability on debit cards, just like credit cards. What they're describing hasn't been the case at most banks for decades.
Debit cards absolutely do NOT have the same protections as credit cards. Wait until yours gets stolen or cloned, and you'll find your bank account drained out really quick, and then you have to fight your bank to get the money back. I got rid of mine many years ago. Today I carry one credit card, and an ATM only card.
I just transfer my money away from the main account
This is false in the majority of the world. Yes, you have to deal with a longer process in the case of debit card fraud, but legally everywhere you do have protections.
@@LeMagnifiqueDoubleAgent-cj4zo banks can and do on occasion refuse to refund money from debit fraud. But assuming one does get the money back it could take a week or two. That's really not convenient when the mortgage is due, and you need groceries.
@@thereallantesh, Well, yeah, that would refuse to refund the money if it appears you are responsible for the transactions, but if it looks like you aren’t, then they refund the money. Most banks also offer provisional refunds immediately while they do their investigations, which indeed could take some time
Or pay actual cash if you care about the business staying in your town, save them the 3% fees lost to the credit company..
That can make or break a small business!!
Personally I pay cash at small businesses for this reason but at large chain stores I'll use my credit card
@@blessmeachoo6 similar on my end :)
Personally I always pay cash. If we are out and my wife pays with her card, I'll leave the tip in cash. I'm a very large tipper, usually 50%-200%. I know they gotta pay their bills.
Shes at Louis Vuitton 😂
@@thehousingvlog7034lol, she’s standing in front of a green screen
If she's rich she doesn't need rewards. She needs security
that's why she is rich, because she knows how to use the system to her advantage. Rich people don't pay for their flights or hotel stays because they know how to use their credit cards.
@@jaytee6586, No, if you have actual money, you don’t care about “rewards”
I married rich and my sister in law is a banker for the ultra rich. Rich people put everything on credit. They just pay it off every month
No, some of us only pay cash. One major factor for me is that I can't see well so I pay cash and don't need to worry about punching any numbers or anything in to a screen I can't see. My wife does use a debit and credit card and she writes them out a check at the end of each month (yes, we are still check people).
Yes, bc they already have the money and are americans. Most people are poors trying to be rich
@@alex.profi27 What is keeping you from being rich? What did you do today to work towards being rich?
I use my credit card for EVERYTHING! I also pay it off every month though. And those points pay for a nice yearly trip fot the fam!
They are not free trips because you just overpaid for everything.
@@ericjohnson2475 are you slow?
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
Great tips! I began doing this and paid for a round trip ticket using reward points.
True. Make sure you only buy what you can afford to pay completely!
Also, she's got a first-class smile. I know I wasn't the only one who noticed.
Unfortunately not anymore with every buisness charging you a 3% transaction fee.
Kiss your 2% cash back goodbye, those days are now over.
I've never been charged a transaction fee and I use my cc every day.
Some businesses add in a fee for credit card transactions but not usually unless it's a small business making a business to business transaction. Some states like California made it illegal for stores to add on a fee for using a credit card. I think a fee is a good thing because stores like mine otherwise need to consider credit card fees into their prices. But some consumers get angry if there's a fee added to the price so it can really turn customers off.
In Asia, it's very common for restaurants to charge fees for using credit cards. I usually get about 4.5% so even those 3% fees are still worth it. Plus a credit card dodges exchange rate costs so i normally prefer to use them. And accounting for business expenses is far easier with a credit card. From a vendor point of view, cash is risky because the employee might steal from you. One cool thing about thailand is you can pay bills and vendors with your phone right out of your bank account and nobody pays any fees for it. But the credit card companies are fighting hard against that in America and that's why you only have a crappy service like Zelle. Here, we just scan a QR code and pay.
As they should. Why should vendors foot the bill for all this convenience? It’s the customer enjoying the convenience, not having to carry cash around. At very least, it should be split 50/50 with the vendor and customer.
@@CruceEntertainment
Making it easy to pay helps the business more than the customer.
@@edennis8578 Same here. No transactions fees whatsoever.
I get cash back frequently on purchases I make by point redemption! It's like getting free money dollar for dollar, while making purchases I would make anyway. 👍🏻
I prefer to keep a low balance on checking account and frequently draft money from savings to avoid being hacked. For a while, I did only use Credit and pay it off. It was easier to track monthly expenses that way.
Actual rich people don't have to care about the rewards.
From my experience experience, the rich actually care about rewards as they are stingy folks, that's the reason they can save money and invest it.
Yeah, they care about security instead.
IF you are responsible! IF IF IF IF... When you get in a jam and you can't pay it off at the end of the month, that's when the problems start. Credit cards are a joke, the whole system is a joke
This is so toxic. People dont pay it off, they don't have the discipline. Thats the point
For almost everyone using a credit card is nothing but trouble. People do not do what you’re telling them to do. It’s no different than a doctor saying you can get all your vitamins from food. Yeah.. you can, but they eat crap. Most people get overextended on their credit cards. Use cash…. Sure you miss out on some perks, but you’ll NEVER be in debt.
If only you all knew most of my overextended friends. 😂
I was actually surprised by the statistics on how many people never carry a balance on their credit cards. Last year, fewer than half of Americans carried a balance on their credit cards.
Has nothing to do with the doctor statement. I am fine eating just normal food, no a doctor didn't ask me to, but it's always better to get all vitamins from food
You'll be correct if you have a spending addiction. Some people have discipline. So, if your an addict type stay away from CC. But, if your discipline and spend only if you can pay in full, think carefully about it. Remember, their are people who are gaming CC industry and those who get game by the CC.
@@edennis8578
Almost HALF of Americans carried balance on their credit cards? 😳
How in the world is that a good statistic? 🤢
Idk, my cashback + travel card combo been saving me money if anything
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
I got rid of my credit cards. Best decision ever.
Why was it the best decision? Were you paying interest?
@@otrebla8944 No. But getting rid of my credit cards, it forced financial discipline on me.
Just use a credit card like you would a debit card. It’s not that hard
@@Evil_Puppy48I live in Italy and that's basically how everyone uses credit cards.
@@Evil_Puppy48 It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
I never understood when someone give the advice of not using a credit cards. It has been awesome using credit cards for everything.
The same protection exists in debit cards. Even though you can get some cash back or some rewards, It comes at high risk, which most people fall to, and even if you don't, you basically indirectly legally take money from others that fall into this trap to fund your rewards.
Some debit cards say that you're not responsible for unauthorized transactions
Dave Ramsey enters the chat…
I almost 40 years I never use credit cards, I don't have any debt and I have money in the bank and starting my own small business saving money and buying times on times my equipment., I don't expend any that is not in my budget , is important to know how use wisely the money for grow
Good for you! I'm 59 and have never had any debt. I've owned several businesses over the years, what are you starting?
I have the short haired lady's mindset. Very informative video. I learned something new
There are some ccs that give you higher rewards with no annual fees, and some that give you miles for travel. I take the rewards as im afraid to fly
Also, if there is fraudulent activity you get your money back much faster.
The majority of people don't know how to use credit cards. Sad but true
Dave Ramsey says NO to credit cards
He only says that though because the average person is incompetent with handling money. If you are semi competent with handling money, than using credit cards like this is extremely beneficial.
To people with poor or no self control*
@@Shark9637 It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
@@Shark9637Dave Ramsey had no credit card and his mega rich what the heck are you on about?? 🤡
I have had my credit card hacked before, and Yes! Credit card company comes in like a boss! Relives you of the debt, and goes after the criminal who stole from ya!
Credit company got her too
They don't "have" you unless you let the balance roll over month to month. If you pay it off every month, they don't make any interest off you. I pay it off at least twice a month, which keeps my used credit amount low- it's great for my credit score.
@@edennis8578 No one is completely automatous and by default one day will miss a payment or more and rack interest. It's reason why financial bureaus bank on the exploitation of our nature and psychology. It's why it brings in billions per year. It's why as of 2022 approx. 51% of Americans are in credit card debt. This number is expected to rise higher in the next 15 years.
@@edennis8578It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
Dave Ramsey having an aneurysm somewhere 😭
Actually, this is not true. 73% of millionaires have never carried a credit card balance in their lives.
“Carrying a balance” means they didn’t pay off the full amount on their bill and it carries over to the next month, where they’re charged interest. I guarantee you most rich people use credit cards to take advantage of the rewards or simply for the greater fraud protection. “73% of millionaires have never carried a balance” simply means they paid off their entire bill every month, not that 73% of them don’t use credit cards.
Rich people pay off the card each month dude, so should you
Regurgitating Dave Ramsey propaganda much? 😅😅😅😅 The vast majority of the 'millionaires' that your God Ramsey has done his survey on, are actually 'net wealth millionaires'.....there's a difference.
@@v.j713 Rich people don't carry credit cards period.
I've never had a credit card. My wife does have 2 but I do not and they are paid off. I don't think 1 has ever had anything on it. My business does use a debit card online because that is the only way to pay for things for my business. The company just now started accepting money transfers but I am already set doing it with a debit card. It gets paid with a debit card that 1 time a year I have to pay for it.
The part about the card being compromised is true ... mostly (you are protected from fraud but you will be out the money until it is resolved), but the rewards thing isn't. Rewards points just encourage you to spend more and 90% of people will plan on paying off the balance each month but end up racking up debt.
Then don't be 90% of people and pay your statement balance every month. It's not easy but it is absolutely doable.
@@CainLupusits absolutely easy.
Thia is so dumb. Reward points dont encourage you to spend more. Jaut use you're brain please
read the contract! the same protections are on Debit cards.
That's also how I built up my credit score from the 400s to almost 800. I would use my credit card even though I didn't have to. I'd pay it off within days of my purchase. Two years of that and my credit score is now amazing!
The thing you're forgetting is rich people live within their means. Having a credit cards teaches you you can have anything you want whenever you want. It's the opposite mentality you need to build wealth
Just paying your balance off every month doesn’t mean the card is going to benefit you completely. I understand that businesses will pass the transaction fees onto the consumer but the key is to maximize rewards and you can even earn referral bonuses and spending bonuses. You have to learn how to play the game, not just paying the statement balance.
It warms my heart to see that these comments sections are overflowing with _extremely_ responsible credit card users, who _always_ pay on time, while raking up those points like there's no tomorrow!🙂
Makes you wonder what the deal is with those people who have credit card debt. They must represent a very small minority. 😳
WOW!!! Thanks Erika... I didn't know this, so l stayed away from all Credit Cards because I had that same mindset as your alto-ego. Now, I'll check to see what deals are out there💖
Check if your bank lets you "freeze" your card. If it's lost/stolen, it can't be used. Same with some credit cards.
NOPE, CASH IS KING
Facts.
Key phrase, “as long as”
THAT IS THE CRAZIEST FIRST CLASS I HAVE EVER SEEN
People telling you what they think instead of educating themselves on the actual process… dangerous.
This skit sponsored by Visa, Mastercard, Discover card, etc. what a joke💀
If you spend abroad, check your FX rate. Credit card currency conversion fees are pretty terrible. Sometimes there are also foreign transaction fees charged to the card owner and not the merchant.
Problem is alot of businesses are now charging a 3.99% fee if you use a credit card as payment for purchases.
Only in USA. No other countries give out that much rewards.
And in debit cards, you can set limit on how much can be spent per day.
You can use your debit card like a credit card but the $$ is withdrawn from your account.
2% cash back pumps if you run a company. I spend about 35k a month on my credit card for business, and the 2% cash back was used as a down payment on a new van for my newest employee 🙃
Credit cards are the way!
A lot of checking accounts are also FDIC insured. CC is still the better option because of the benefits.
I paid off my credit cards and cut them up.
They could easily offer rewards fir debit if they wanted to.
A lot of people have a different mentality when it comes to credit cards. People tend to spend more using a credit card as a debit card is using your own money. When you use your own money, you're more aware of what you actually have. If you're card declines due to insufficient funds, it means you can't afford it. Also, I don't put a lot of money in my debit card in case of theft. In New Zealand, we also have the EFTPOS system which always require a pin. These cards can't be used online so that's when I would use a debit card.
By the way, airline miles and cash back never made anyone rich. People that spend that amount of money usually can pay for their own airline ticket.
Being rich often means you are a business owner, and if you are a business owner you often use a company [credit] card to buy expenses
We had a car broken in too in the parking lot of Boomers few years ago… They took everything that was in the car. Was around Christmas time. Merchandise from Macy’s my purse. For my Debit card and filled their car at Arco gas station. I was able to block my card thank goodness.
I generally get about $10,000 a year back in rewards because I pay everyone of my bills with a credit card too! Electric gas water trash literally absolutely everything is paid on a credit card that I get cash back
So if you’re getting 3% cash back you’re spending $300,000 a year on credit card purchases?
This is something young people should really focus on.
Make more content about this subject.
No cashier will ever question how u pay.
The $50 liability limit also applies to debit cards. I worked for a major bank's customer service once upon a time. I handled these claims. You will usually get a probationary credit for the fraud charges which will be made permanent once the fraud team verifies your claim is legit. The benefit of using a credit card is that your checking account balance isn't automatically affected.
Studies shows that people can better track and handle their finances if they pay in cash, like hard cash, paper bills.