Dave Ramsey schools broke Finance Professor who advocates using credit cards

Debit card?! Who in their right mind would use a debit card over a credit card? I can think of only one instance I might be tempted to use a debit ... at a gas station that offers discount for cash and I don't have the actual cash. Even then I'd likely just use my credit card because it is ZERO risk to me.

I don't really buy large-ticket items. All I really buy, or need that costs money are books, which are essentially free anyway secondhand, and I have some pretty expensive musical instruments I bought a long time ago, that happily stay that way unless you set fire to them.

All my clothes are secondhand, I only really buy shoes, socks and jocks new. My laptop is pretty ancient (yes, I bought it secondhand) but I don't game so who cares.

I neither drink nor smoke, or party cos I grew bored waiting for it to start being fun.

I've never driven a car, which is usually the fact I give about myself when people ask for an unsual fact to give about yourself. If I had a family, I'd have to get one, but I don't, so I haven't. I've lived in country and city, btw. It just takes longer to get places, but mostly that time was only going to be wasted anyway, in the larger scheme of things.

I've been on very good money, and literally homeless as well. Homeless sucks, but not having much money isn't that bad at all. Coke and knockoff cola are pretty much the same thing.

You don't really have to learn to live on little--imho you learn to depend on living with much.

Literally, the most expensive things I buy regularly are running shoes.

Yes, with a debit card. My issue: more than once, I have been told $100 to $125 hold on my account per day. Every time I have used a debit card to rent a vehicle, rental vehicle company "accidently" charges my debit card an extra day or two without my prior authorization. Eventually, as previously stated I get my money back. The $100 or $125 per day is on top of a deposit. I have thrown in the towel on debit cards at auto rental places. Too much of a hassle. If I say the name of the company, my posts will be deleted or the thread may be deleted.

It's possible, but it can be hassle, and I don't think I'd like to rely on it.

I've been long-term one company, and I have been allowed when I flown into somewhere and I have the return flight itinerary to show. Other times they've pretty much put there foot down.

That's about the only thing I use one for (and it's the only one I have).

Credit cards are a convenience. Mine is no fee. I use it for almost everything. I pay the balance off every month, haven't paid any interest in over a decade. The rewards are deposited in my investment account. Credit cards can be a good thing.

Which card do you use specifically that it pays you back “hundreds of dollars”?
are you exaggerating, or is this actually real?

Wells Fargo active cash card pays 2% on all transactions. Spend $30k in a year and you get $600 back.

Nonsense. The ONLY place I have ever seen where you spend more when using a credit card is a gas station. Perhaps one can scrounge around to find a few other exceptions. But the notion that you typically spend a bit more when using a credit card is utter rubbish.

Ramsey's prohibition on credit cards is bizarre, but he tends to counsel people who have made exceptionally bad decisions about money, and I can sort of see why for people like that an otherwise mundane credit card might seem like a hazard.

Ramsey's support for MLM schemes, and the sketchy mutual funds he promotes, are less forgivable. But ultimately the only reason to listen to or watch his show is the entertainment value of stories about people screwing up, so whatever.

Jim Cramer: Graduated top of his class at Harvard, worked for Goldman Sachs

I use:

Amazon card for Amazon purchases. 5% back on all purchases—can be cash or used again on Amazon.

Costco is 2% at Costco, 3% on restaurants and travel, and 4% back on gas. Also matches another 2% in Costco purchases as a gift card.

Both above do 1% on everything else.

Apple Card with Apple Pay does 2% on any Apple Pay purchase, which beats the 1%. I think it’s 3% back on Apple purchases, which aren’t frequent but pretty good for when you pay App Store fees and get the odd new computer or phone.

This all adds up for us (family of 4) to over $1k each year easy, probably closer to 1.5k. Ramsey would have you forgo this money to bolster his ideology and because he doesn’t trust his listeners to be responsible. In 20 years with a credit card I think I’ve paid $5 in interest, because of one purchase I needed in grad school that I needed one extra month to pay off. Otherwise we pay it off each month in full.

The best is getting the rewards on reimbursable items. Flights get 3%. One time we had pharmacy fills that we paid about $8k/mo on a credit card for 5 months, reimbursed within two weeks before bill was even due. An easy $400.

Use the tools well.

You really can’t help it can you? You just love the guy. You know he probably rarely if ever outperformed the S&P and all of his opinions now are clouded based on sponsor’s concerns. Like obviously he can’t tell you to ditch stock from a sponsor because they a a horrible company that is failing.

For some reason, Ivy League schools, Stanford and U. of Chicago believe they are too good, too lofty to offer accounting as a major. Accounting at Cal State Long Beach or accounting at Boise State U. is more rigorous than majoring in government at Harvard. Do not kid yourself. Jim Cramer is a clown. You don't have kids. You have time. Why don't you go to school part time and obtain a m.s. in accounting or a degree in economics or finance.

Dave Ramsey has a net worth estimated to be at least $50 million and as high as $200 million. He has built a financial empire preaching debt freedom to the masses.

His business model assumes (correctly), there will be a never-ending supply of people who are financial illiterate and irresponsible and cannot handle debt or credit cards. His tough love approach is well suited to his target audience. I think he's authentic. I met him and his personality is a subdued version of the persona you hear on the radio. He's like a broken record who says the same thing over and over.

I'm reminded of a great quote by Larry Hagman, the actor who played the iconic J R Ewing in Dallas the TV series. Hagman was once asked if it bothered him to be typecast as Ewing and play the same role over and over. Hagman quipped, "I laugh all the way to the bank!"

Similarly, Dave Ramsey is typecast. It doesn't bother him. I don't follow his advice, but then I'm not worth $200 million. :)

I agree with your point entirely. Credit card cash back offers can be beneficial.

What I would like to know is more about the Amazon Card. I didn't know they offer 5% ash back on all Amazon purchases (for Prime members). So I looked it up on Amazon and the first page is all terrible user reviews, with the advice to stay away from it.

Has this been your experience?

first time i handed a sweat-soaked dollar bill (fished from my running shorts) to a cashier for a Gatorade way back in the days, I knew it sucked. If you're still out there, I am sorry (and if you're still working at the same gas station, I'm sorrier). I am now older than 19 and a better person.

Yeah and he’s an entertainer now. An entertainer whose recommendations have been so drastically off the mark that his wholly unverified claims of double digit returns in the ‘80s and ‘90s are at the very best questionable.

His job isn’t to give you good advice, it’s to get you to watch his show. Would you take financial advice from Tucker Carson or Don Lemon? Because that’s basically what you’re doing if you take financial advice from Cramer.

Dave Ramsey’s basic advice is “save more, spend less.” Nothing wrong with that. He doesn’t like credit cards. Quirky, but there is worse advice out there (and the credit card companies ARE sleazy). Ramsey approves of using a mortgage to buy a home, and he thinks people should save back an emergency fund for unexpected expenses. Nothing wrong with that. He doesn’t like going into debt to buy a car.

If you listen to his show regularly, his repetition of key points drives some solid considerations into your consciousness, and causes the listener to consider purchasing decisions more carefully.

I attended one of his seminars, it was one of the best things I ever did. Haven’t given money more than a passing thought in years. Yesterday paid a $300 car repair bill without blinking. My wife recently bought our daughter an apple computer for school. My daughter’s college tuition (she’s a senior now) is paid with a check. We literally have a bowl of $20 bills in the bedroom (We grab three or four when needed). Dave gives good advice. Follow it and you’ll be fine.

As an aside, I never gave up my credit cards. Didn’t see a need to. Nothing says a person has to follow every suggestion a financial advisor makes. Use your head. If you’re not accustomed to using your head, get accustomed to it.

If you REALLY want to save money, learn about cars.

Use your head? That's a foreign concept for Trumpers? They are proud of acting on their gut feelings.