Paying with credit card online
I found Dave Ramsey a few years ago on YouTube. Beforehand I’ve never heard of Dave Ramsey, I was unaware of the type of value Ramsey provided to his viewers. One of the very first videos I saw of Ramsey was called “The Secret to Not Being Broke”.
Essentially the video talked about how people should not be financing things they can’t afford. People should be living below their means to become financially wealthy according to Ramsey and I agree with that. After learning about Ramsey, and binge watching some of his videos, I quickly learned that Ramsey did not like credit cards. He believes that credit cards are the devil’s creation.
Essentially Dave’s hatred toward credit cards can be summed up with two bullet points:
- Having a credit card makes you spend more money which can lead to credit card debt
- Credit cards are designed to get you into credit card debt
This is the part where I strongly disagree with Ramsey. Yes, it’s true that at some level credit cards inadvertently make you spend more money, but that can be said with debit cards. Under this logic, we should only be using cash because debit cards have a similar effect to credit cards. But that would be insane because in this day in age having cash can be a hassle. Having a debit card or credit card can help protect you as a consumer and help better track your spending.
How Paying My Bills and Expenses with My Apple Card Helped Me Earn an Extra $100 Dollars A Month
I’ve been using the Apple Credit Card for over three years now and I’ve earned over $1200 dollars a year or $100 dollars a month. I use my Apple Card when I go grocery shopping, to pay my bills online, and when I’m buying stuff off Amazon.
That’s $100 dollar extra I get every month for spending money I was going to spend regardless of how I was going to pay. You might as well get some money back for that electric bill or gas bill you’re going to spend money on. That’s the beauty of credit cards, which is something Ramsey refuses to acknowledge.
Other credit cards offer better rewards and cash back than the apple credit card. For example, credit cards like the Chase Sapphire Reserve get access to:
- Complimentary year of DoorDash DashPass membership
- Primary car rental insurance
- Trip cancellation/trip interruption insurance
- Up to $120 in DoorDash credits
- Priority pass airport lounges globally
- A $300 dollar statement credit toward travel purchases each account anniversary
I know a lot of people don’t have access to credit cards like this, but it’s important to see the benefits in having certain credit cards. Having one or two credit cards won’t hurt you as long as you are using them responsibly. Having a high credit card limit does not mean you have to spend all of it. Always make sure to treat your credit card like a debit card.
Dave Ramsey Does Have Valid Point on Why You Should Avoid Credit Cards
I always been for the pro-credit card side of the debate, but that doesn’t mean I don’t understand the other side of the argument.
Ramsey does have some valid points in his argument against credit cards. He often cites a study that shows how credit cards take away the pain of spending, which can cause people to spend more money than they normally would.
This is a valid argument.
I can personally confirm that spending money does hurt more compared to using a credit card. Giving that $100 dollar bill will hurt me more than pulling out my credit card to pay for that same exact 100-dollar thing.
Paying with a credit card is easy, too easy at that. All you have to do is swipe for the balance to be paid no thought process and no hassle.
Even though this is true for some, it does not mean it is true for all. Learning to treat your credit card like a debit card is the key to not getting into credit card debt.
Using Credit Cards Responsibly
My final thoughts about credit cards are that you should always use credit cards responsibly.
Meaning that your credit card should be paid in full every single month. If this is something you can’t do, then you should stay away from using credit cards because it can lead you to get into credit card debt in the future.
Paying off the balance is not the only thing you should do another aspect of this is that you need to be able to control your spending. Always use a credit card like a debit card. Don’t buy things just for the sake of the rewards.
These are the two principles that I follow when using a credit card. If you’re able to control your spending and able to pay the monthly balance at the end of the month, then you shouldn’t worry about getting into credit card debt because you won’t. Can’t be in debt if you don’t have a balance at the end of the month.
Conclusion
Personally, I’m happy to ignore Dave Ramsey’s advice about credit cards. But if you’re a person that struggles to budget and struggles to control your spending habits then it might make sense to burn does credit cards.