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Posted by joetaxpayer on August 15, 2008, 2:55 pm
> I don't understand the point of a debit card. Why not use a credit card and
> use someone else's money for a month? If you have the money to pay for
> whatever anyway, you'll pay the balance in full at the end of the month, so
> there's no interest charge. Use some kind of rewards card and get additional
> benefit(s).
>
> Elizabeth Richardson
Of course, I agree with you. But every time I bring this up, almost
exactly as you did, I find people quoting the likes of Dave Ramsey,
"responsible use of credit cards doesn't exist." I offer back that as
you suggest, I have a cash back card which puts 2% into a 529 account.
That account now has just over $8000 as my wife and I both can run some
reimbursed business expenses through it. Never paid 1 cent of interest
and the card has no annual fee. I'm then told that psychologically, it's
observed that people spend more on credit cards than with cash. That's
when I give up, but my view remains unchanged.
The cards also offer minor perks such as extended warranty, doubling the
manufacturer warranty up to an extra year.
Not to mention, how do you reserve a hotel room or car when traveling
without a CC?
Joe
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Posted by Default User on August 15, 2008, 4:15 pm
joetaxpayer wrote:
> Of course, I agree with you. But every time I bring this up, almost
> exactly as you did, I find people quoting the likes of Dave Ramsey,
> "responsible use of credit cards doesn't exist."
People are entitled to their opinions, but those are just that.
opinions.
> Not to mention, how
> do you reserve a hotel room or car when traveling without a CC?
Debit cards can be used for such purposes, I believe. I recently rented
a car online, and there was a choice for debit cards. As I recall,
there would be extra steps if one went that route, but as I was using
Discover I didn't investigate.
Brian
--
If televison's a babysitter, the Internet is a drunk librarian who
won't shut up.
-- Dorothy Gambrell (http://catandgirl.com)
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Posted by John A. Weeks III on August 15, 2008, 5:55 pm
> joetaxpayer wrote:
>
>
> > Of course, I agree with you. But every time I bring this up, almost
> > exactly as you did, I find people quoting the likes of Dave Ramsey,
> > "responsible use of credit cards doesn't exist."
>
> People are entitled to their opinions, but those are just that.
> opinions.
There are facts to back up that opinion, however. Ramsey often
quotes a study that shows that people spend considerably more
when using a credit card as opposed to when spending cash. I know
that I do, and I am much more frugal when using cash. We also
see record levels of bankruptcy and foreclosure, which means
that many people are having problems managing their finances.
A credit card is a tool. It can be a high risk tool in some
hands, and a low risk tool in the hands of other people. Just
like you shouldn't run a chop saw without a bit of training, you
shouldn't be using credit cards if you cannot control your spending.
> > Not to mention, how
> > do you reserve a hotel room or car when traveling without a CC?
>
> Debit cards can be used for such purposes, I believe. I recently rented
> a car online, and there was a choice for debit cards. As I recall,
> there would be extra steps if one went that route, but as I was using
> Discover I didn't investigate.
In my travels, I have been able to reserve a hotel room without
paying for it. If you are going to gaurantee the room for late
arrival, then you need some kind of card. But it is far from
impossible to reserve a room with no cards.
I have also seen people get rental cars without a credit card.
You might not get a Hertz or Avis car that way, but there are
local rental places in most bigger cities that will rent for
cash. If worse comes to worse, you can rent a van or pickup
truck from U-Haul for cash.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
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Posted by Default User on August 15, 2008, 6:34 pm
John A. Weeks III wrote:
>
> > joetaxpayer wrote:
> > > Dave Ramsey, "responsible use of credit cards doesn't exist."
> >
> > People are entitled to their opinions, but those are just that.
> > opinions.
>
> There are facts to back up that opinion, however. Ramsey often
> quotes a study that shows that people spend considerably more
> when using a credit card as opposed to when spending cash.
I think probably some (maybe most) people do. But I doubt you can prove
that all do.
> I know
> that I do, and I am much more frugal when using cash.
I'm naturally frugal (sounds better than tightfisted) and the means of
payment has little impact on how I buy things. I don't buy anything
unless I've convinced myself that I need it. And I'm often a hard sell
on that score.
> We also
> see record levels of bankruptcy and foreclosure, which means
> that many people are having problems managing their finances.
But not everyone that uses one gets into such trouble. You could use
that say, "there's no such thing as responsible use of home loans."
Some people probably agree with that.
> A credit card is a tool. It can be a high risk tool in some
> hands, and a low risk tool in the hands of other people. Just
> like you shouldn't run a chop saw without a bit of training, you
> shouldn't be using credit cards if you cannot control your spending.
That's right. That's why I object to the blanket statement that
"responsible use of credit cards doesn't exist." There are people who
use cards day in and out, pay the bills on time, don't alter their
spending due the access to credit, etc., etc. One would have come up
with a definition of "responsible" that was so far outside the
mainstream as to be meaningless to justify the statement.
[remainder snipped as I didn't have any comment]
Brian
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Posted by joetaxpayer on August 15, 2008, 6:36 pm
John A. Weeks III wrote:
>
>
>>joetaxpayer wrote:
>>
>>
>>
>>>Of course, I agree with you. But every time I bring this up, almost
>>>exactly as you did, I find people quoting the likes of Dave Ramsey,
>>>"responsible use of credit cards doesn't exist."
>>
>>People are entitled to their opinions, but those are just that.
>>opinions.
>
>
> There are facts to back up that opinion, however. Ramsey often
> quotes a study that shows that people spend considerably more
> when using a credit card as opposed to when spending cash. I know
> that I do, and I am much more frugal when using cash. We also
> see record levels of bankruptcy and foreclosure, which means
> that many people are having problems managing their finances.
>
> A credit card is a tool. It can be a high risk tool in some
> hands, and a low risk tool in the hands of other people. Just
> like you shouldn't run a chop saw without a bit of training, you
> shouldn't be using credit cards if you cannot control your spending.
You are right, John. I think Elizabeth (I hope I am not attributing a
thought she didn't mean to imply) and I were both thinking that if one
has the cash to use a debit card, they may already have the discipline
to spend only what they will pay at month's end.
Does Ramsey's study differentiate between the 'pay in full' customers vs
the ones who carry a balance?
Joe
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