Credit Cards

[Sweet Pea]

Originally Posted by crakjak

Major brand debit cards carry the very same benefits as credit cards, and since the money is cash you are not tempted to spend more than you should. It is a fact, people spend 15% to 20% more when using credit vs debit.

You should read Dave Ramsey's book, "Total Money Makeover" before getting ANY credit card there is a different way of living. It is called "debt free", and it gives you the freedom to focus on life, instead of survival. Normal for most Americans is "broke". Fact is you pay for the bonuses, think about it, it will come to you.

Just saying. LOL

Crakjak - I am a total Dave Ramsey fan and support his plan of debt-free lifestyle living completely! However - although most brand name debit cards DO act like a regular credit card - it IS like cash and the money is instantly removed from your checking account. BUT after you have had your account cleaned out by fraudulent use of a debit card and have had to spend six months clearing up the mess and getting your name cleared with the bank and merchants that you had written real checks to (yes, some of us still write checks on occasion) - THEN and only then can you truly understand the advantage of having a credit card!! You can dispute the charges immediately - but you don't have the money out of your account while the dispute is being investigated. I check our credit card account AND our bank accounts online for fraudulent use at least every other day. But I learned this lesson a very hard way - once it is gone from the checking and/or savings account - it is VERY time-consuming to have the money returned by the bank - and then what do you do about your day-to-day living expenses?

The bottom line...... a person MUST learn discipline with their money. We spend no more using a credit card than we would if we were actually using cash (which is the real method that Dave Ramsey recommends). We are debt free and live on a fixed income. At this point in our lives - carrying a balance forward on a credit card would be an extreme emergency.

And BTW - most "debit" cards these days also offer rewards - so yes, you are paying for those rewards in the long run - but until everyone stops using these type of cards, you are still going to be paying for other people's rewards. JMHO