What Society Won't Tell You About Credit Cards



VIPs coming up on this episode I've got a caller that wants to know should she pulls out her credit cards or keep them open I'm gonna shoot her straight and I've got some Millennials they got themselves out of debt they've got an emergency fund they're ready to start investing and they need to know what's the next step I'm gonna help them as well stay tuned you don't want to miss it every day millionaires I am your host Chris Hogan this is your show where your life and your money takes center stage remember it's your life VIPs take charge well I'm excited to be back with you we have another action-packed show where we've got people that are on the phone that have real questions and real-world scenarios so guess what we're gonna dive into it and attack it because progress is available for anybody that's focused enough to get out there and and fight and sacrifice to make it happen well I don't have a show without you so I want you to call me call me and leave me a voicemail the number to call is eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three or if you prefer you can send me an email the email addresses asked at Chris Hogan 360 dot-com but VIPs I want to talk with you a little bit about the whole credit card issue people often want to know Hogan why are you so fired up against credit card so why are you trying to attack them and get people to attack the debt and get it out of their life well here's the deal the bottom line is is if you owe money if I'm using someone else's money then I'm being charged interest okay think about that right and and all people try to have discussions about interest rate but if I'm using someone else's money I'm charged interest well guess what that interest is a penalty Oh hadn't thought about it that way have you yeah if I'm using someone else's money uncharged the penalty in the form of interest so guess what I don't know about you but I played sports all my life and penalties are never good I mean think about it in soccer there's a penalty kick ah all right in hockey there's a penalty box mm-hmm okay in football there's a flag that they throw 15-yard penalty for unnecessary roughness which is a fake rule by the way okay there's no such thing we're playing football here sorry VIPs I had a flashback but listen to me penalties are never good so we don't want to be penalized in our financial lives either and if I'm paying interest to someone else that's exactly what's happening I'm being penalized and the crazy thing about it is that this is a penalty that we've selected to bring into our lives think about that like you we volunteered for this penalty called interest and that's not something we want to do when we're chasing down and trying to make progress the goal is to make sure that we're moving in the plan and we're moving in a direction but we don't need penalties in our life you know why because we want to be rewarded and when you gain interest you're being rewarded so VIPs that's the key we don't want penalties I don't want to pay interest I want to be rewarded by growing interest in my investments so that's the difference okay I'm going back to the phones let's see here forgot Tony in New York Tony how are you I'm good how are you thank you for taking my call thank you very very much for calling in how can I help you today so my husband and I are trying to get a handle on our debt and all we seem to be all over the map was getting started but one question that came up was as the pay off credit card should we close them we had heard that closing a lot of credit cards negatively affects your credit so we didn't know what the process should be for closing those cards okay now Tony talked to me here a little bit you mentioned you guys have some debt that you're trying to attack so are you familiar with the baby steps I am I am tonight with the baby steps my mom had turned me on to on Steve's baby last year okay it just being you know what they are but we have you know monies all over the place you know what our debt is we're just having a little trouble getting focused and started about what to do first no I understand that and and you know what Tony you're not the only ones because this money stuff it's amazing we're never we're never taught you're like what to do in the timing of it at a young age and so we grow up and we're all over the place doing this thing called life and often times if we don't have a plan we end up falling for someone else's and that's that done that form a debt so you guys are aware of your debt so tell me how much do you owe right now total debt with student loans and credit cards and a few personal loans about 68,000 okay how much of that 68 is credit card debt okay all right and so do you all own a home already well we're paying a mortgage okay okay so what's your household income roughly 192 okay all right and so in looking at this the reality is you know with the income you guys have this debt as you mentioned getting focus will allow you guys to be able to make progress on this debt okay and it is a matter of just kind of digging in and getting honed in on a plan but in my opinion yes I absolutely would close out these credit cards after you pay them off now people say oh right I and I hear other VIPs out there doing the same thing but why would I do that Tony why would why do you think closing it is a good idea because we won't keep using them like we are Bing Bing Bing there it is and it actually forces us to rethink because we don't have this false safety net back there in the form of credit cards now will it impact the credit score okay you know let's think about this for a minute a lot of people Tony don't even understand what the credit score is like they look at it as an indicator of how well you're doing and I'm a former banker so I used to talk about credit score all the time and the reality is this is what credit score measures it measures how much debt you have how well you've paid the debt the type of debt that you have and the likelihood that they're going to give you more debt now Tony I'm about to ask you a million-dollar question here did you hear a theme and all of those questions yes depth it's the one thing that holds us back so I think yes I would tell you to not only pay off their credit card but shut it down because moving forward as you all are adapting this new kind of philosophy and dealing with money you're gonna use cash we're not looking to borrow anymore and so because of that your credit score actually doesn't matter it's though it's a false indicator of of how people are doing financially so Tony yes attack that debt pay off those credit cards smallest the biggest and then close them out now when you call to close them out Tony I need to give you a heads up it's gonna be it's gonna not gonna be as easy as I'm making it sound they're gonna offer you all kinds of stuff to stay they're gonna offer to reduce your rate they're gonna offer to do X Y & Z and all set they're gonna feel like you're breaking up with a good friend and they're not a friend they're our frenemy right because the thing that they're after is money so you guys close those out have a plastic t'me I want you to have a party as you cut them up after you pay them off and send me a photo let me see you cutting them up I want you to get creative with this declaration of your new independence financially cuz you're gonna move forward thinking differently and I know you can do this VIPs if you're out there some of you you've attacked the debt and you've paid it off but maybe you haven't closed off that closeout that credit card yet close it get that thing out of your life because if it's still open even if you've cut up the card and it's still open they're gonna mail you another one they're gonna keep sending them and they're gonna send them and they're gonna catch you at this weak point where you're feeling like you deserve some stuffs right and next thing you know you're up in the mall skipping around having a swipe arama right doing crazy sorry I just had a flashback from about 16 years ago when that's what I was doing right the little thing showed up in the mailbox and I acted like I'd won a prize you know that one was a penalty because that's what I did I was skipping through the mall y'all just swipe them just swipe swipe swipe and right the next thing you know that statement shows up and it's just heavy I mean it's heavy you could have waited by the pound it was like buying deli meat right this thing was big and I had to take a few years to get focused to clean it up and you know what seen that movie I've lived that I don't want to repeat it so the eyepiece shut them down close them out cut them up and get creative send me some photos to send me some videos of how you how you utilize this plus secta me and just send them to me ask at chris hogan 360 calm i'd love to see photos and even videos okay I got to get back to the phones I'm riled up today I've got Casey on the line calling me from Minnesota Casey how are you I'm doing well how are you oh I'm focused than not finished you knew that was coming mm-hm I understand you've got a little bit of a success story to share with me yes so I called you last fall I'm wondering if I should dip into the emergency fund to help pay off my mortgage okay so what did I tell you you told me not you you told me tighten the budget and stay focused okay no Casey you call him back in so I'm but I don't know where you're going with this did you listen to me I did yes I like you so much we tighten the budget and any little bit extra we put on the house and we paid it off to two weeks ago hey that is fantastic what was the what was the last check you all sent in on that thing you remember the size the size with the last one yes the last one was on the okay and I got we got your picture up look at that family that's a great-looking family and I am so proud of you guys Casey I really really am how does it feel to own your home it I can't even describe it it's just like like I feel wave light yes you do how much was the standard mortgage payment on your home it weighs about 600 but for the last few years we've been making triple payments my husband yeah my husband sold his motor circle we did he really yeah what what con did he have he had v-rod oh my oh wow okay now did you did you make him sell it or did he did he decide to sell it he decided he bought an older one that was more comfortable for me to ride oh no this is fantastic what's your husband's name his name is Noah you tell Noah that I'm proud of him I mean this is a no I'm serious you guys collectively made a sacrifice Kasey and you guys stayed focused and you work together and look what you did and I'm very proud of you because you're gonna encourage a lot of other VIPs out there to realize we can do this and you know why I told you not to touch that emergency fund don't you yeah so that we don't have any more problems there you go that's exactly green it's just nice knowing that you know something happens it's just okay let's feel like that it's not a how are we gonna deal with it it's just let's just do it I'm so proud of you Casey fantastic job attacking pan off the house listen to me VIPs when people out there say it's not possible it's a lie you just heard Casey and Noah from Minnesota buckled down left the emergency fund alone right and got focused and started throwing extra money toward the mortgage the husband Noah he's a rock star right this guy sold his motorcycle downgraded right and got focused to send extra money toward the mortgage this is how families win this is how people win congratulations you guys when I come to Minnesota I'm coming by to visit this paid for a house and I want to ride on that motorcycle too okay in case I'll ride with you I'm not riding with Noah but anyway congratulations I'm proud of you guys you are proof that it happens every day people havin massive success well speaking of putting your mortgage out of your life maybe it's time for you to take a look at a refinance Churchill mortgage listen is a company that I trust we've worked with them for years they can help you interest rates have dropped and you may be able to get a better deal on on your mortgage right so the key is get a break-even analysis to understand where you are and if it makes sense or maybe you bought a home and you didn't know right and you went the way of the bank or whatever and you got a 30-year fixed-rate mortgage nope it's time to take a look at refinancing to go into a 16 15-year fixed-rate mortgage either way my friends at churchill mortgage will be able to work with you to see if financing is a good idea for you unique situation so what you want to do to connect with an expert is to go to Chris Hogan 360 comm / dream team let me tell you that again that's Chris Hogan 360 com / dream team and now you can get connected to figure out where you are and so we'll put a link to this in the show notes as always and if you're watching on YouTube all you got to do is click the link below now listen to me I want to encourage you to take action here ok a lot of you you've heard me say this and you go ok Hogan I'm gonna do it but right now I'm busy right I got a lot of stuff going on don't be too busy for your future right it only takes a few minutes go over to Chris Hogan 360 calm / dream team let's get started on this do the legwork and find out exactly kind of where you are and where you stand ok well it's now time for panicked or pumped this is where I put on the coach Olga nap this is where I'm gonna walk with you through your situation and kind of give you some personal guidance I'm gonna coach you right where you are and I've got some people that may feel panicked about something that they're dealing with or you may have some people that are pumped about where they are and they need to celebrate either way I'm here for you alright it's time to go these are emails that were sent in this one is from Daniel he's panicked he says hey Chris I'm 25 years old I paid for fun times with cash in the past while my wife paid with credit cards long story short we have 15,000 and credit cards and 23,000 on a 2015 Jeep I was able to convince her to try to sell the Jeep the best deal that I found so far is 19,000 for the Jeep so we would pay $4,000 to get rid of it I have an old car lined up after we get rid of the Jeep so my question is at this point should we even sell the Jeep if we're having to pay to get rid of it we have already paid off ten thousand in debt in the last two months so I know we can do it fast with the Jeep gone we can have all our debt and emergency funds finished in three months if we keep the Jeep we get pushed back about four months we don't love the Jeep but it's reliable thanks for the help okay Daniel well here's the thing first and foremost I love that you all both together have arrived at the decision that debts not your friend okay this is a lesson that you really really want to have it seared into your mind but also in your heart because you don't want to go backwards anymore okay you don't mention the payment on the Jeep so here's the deal the bottom line is is a if it's only gonna take you another month to attack and pay it off then get focused and pay this thing off right but the timeframe that you have you've paid off ten thousand and debt over the last two months so you've got the fifteen thousand and credit card debt and the twenty three thousand on the Jeep so if I'm doing the math and you've paid off ten thousand in debt that would leave you with five thousand and credit card debt but still those twenty three thousand on the Jeep so I don't understand how you would just pay that off in a matter of a few months but here's the deal you and your wife sit down and talk about it and if you're gonna keep the Jeep then get attacked get get serious and attack this thing and get it paid for if you're gonna sell it then let's get it sold either way I think the best thing to do is to take action and I like that you guys are clear I want you working together that's the deal and don't let this thing hang around what I was gonna say is is you don't mention how much the payment is on the Jeep so I can't can't do the math that way for you but if you can get this thing paid off and out of your life than four months then by all means do that get that thing gone and then get focused but here's the other side of it okay you guys have to really commit to being serious about this don't let it just hang out keep the intensity up right there's no reason for you to feel panicked it's a matter of you guys being on purpose and intentional about what you're doing as you move forward Daniel let me know what you decide be sure to write in and let me know when the Jeep is paid off if you keep it and you pay it off I want a picture of you all in front of this Jeep right with a sign that says paid if it's out of your life and gone send me a picture of you in front of the other car that you paid cash for no more payments we're not going there and no more credit cards want you guys to get on the same page and keep working together thank you for your email okay next up I got a pumped email in from Heather Heather says hey coach well you got my heart right there she goes hey coach so excited to say that we paid off our truck $17,000 and are set to pay off our car by January 2020 so close to moving past baby step number two thank you for your encouragement and wisdom we're focused and not finished Heather I am pumped for you all the fact that you guys are deleting big debts right $17,000 trunk buy payment right next up is the car that's getting ready to get kicked to the curb that payment get on out of here car payment and the next thing you know you get out of debt you give yourself a raise when you give yourself a raise now you've got more money to do the things that are necessary so Heather you and your husband continue to stay focused because you're absolutely right you're not finished but do me a favor the same intensity you were using to attack the truck and the car I want you to use that same intensity and attack baby step number three to build up your fully funded emergency fund remember progress that happened by accident it's intentional right because it's intended and I know you guys can do it thank you both very very much for writing in so VIPs if you're sitting out there and you're feeling panicked about a situation you have you're struggling with something and you're like I need some help that I need you to reach out I want you to send me an email send it to ask at Chris Hogan 360 dot-com just put panicked in the subject line and talk about it the main thing is that you're not alone right you're gonna be able to actually help other people by reaching out with your question to let us know what's on your mind and if you're feeling pumped you've got something you want to celebrate whether you you've paid off a debt or you're getting more focused or you're making some sacrifices I want to hear from you as well so email me at ask at chris hogan 360 calm and then the subject line just put pumped and write out what it is you're wanting to celebrate you see celebrating is a good thing it's how we stay motivated it's how we stay engaged and it's also how we keep moving forward so regardless of if you're feeling panicked or punk I want to hear from you because we're in this thing together that's fantastic love to hear that all right I got to get back to the phone I've got Jake on the line calling in from Texas Jake how are you I'm good how are you oh I'm focused and not finished my friend now they say people do big things down in Texas so what kind of financial stuff are you tackling buddy so my wife and I we just got married in January and we are on baby step 4 we have 3-4 months worth of money income saved in emergency fund and now we have some extra money and we have about 15% our budget ready to throw at investments and we were just wondering you know we're renting should we tackle a Roth IRA now so they can take advantage of lighting that's it and grow for 40 years or so or should we focus on a down payment for mortgage and get that 20% down fantastic Jake how old are you and your wife I'm 27 and she's 22 fantastic and what you all's combined household income we were looking kind of menial jobs she she tap dancer professional tap dancer and she makes about 35 and I'm teaching fellow I'm getting my doctor and it's getting paid for at the University but I have to teach and I get a little stipend and that's about I didn't get about 20,000 per year so right now after taxes about 45,000 okay okay and I'd like that you guys you have your emergency fund which is fantastic you've got that the ten thousand over I would definitely go the route of Roth IRA okay I really would and and Jake here's the deal when you hear Roth I want you to get tingly like I just did right there you know why because it's after-tax it means that all that growth that's gonna happen is gonna happen after tax which means Uncle Sam can't touch it anymore and it jus alls ages at 27 and 22 years old setting that up and letting that grow it's fantastic okay now as you start to move forward you mentioned about saving for a home that's great but I want you to make sure that you're intentional okay be very intentional so you know with with investing the 15% right and then from there being able to move you don't have kids or anything yet so you guys could then after you start the 15% over and above that you could start saving for a home downpayment because your incomes gonna grow so yes definitely plug in let's take advantage of compound interest Jake get it working for you because the compound interest is your friend thank you very very much for writing in for calling in excuse me because that's a question a lot of people get vips remember Roth means tax-free so take advantage of that put that money aside and again if you've got questions on that or want to know what step to take to get it set up reach out to a smart vest or pro all you have to do is go to Chris Hogan 360 comm you can get plugged in click on the dream team button and you can get plugged in with the smart vest approach that can walk you through how to set that up also have bumped into somebody in the lobby the other day and they were telling me hey I'm about to start working a big boy job that's how he put it and he said you know and I'm really getting focused he says I'll be eligible to start in the 401k after I'm there nine months what steps should I take and I said you know what once you start the job go ahead and get information about the 401k but then reach out to a smart Wester pro so you can start to look and understand what options are available so when it comes time that you can enroll then you've got a great opportunity to be able to just take the paperwork sit down with the smart investor pro and get this thing started and so now you're well on your way and it'll keep you focused you know why cuz you're not finished okay I'm going back to the phones I'm in Kansas City let's see I've got oh do me a favor a man send Jake a copy of my book every millionaires because there's no doubt in my mind that he and his wife are gonna be everyday millionaires Jake this is my latest book it came out January 2019 every day millionaire is how ordinary people built extraordinary wealth and how you can too I talked about Roth IRAs inside of the book and so I want you to have a copy of that as a gift so you guys can read and get intentional about what it is you're doing cuz you've got big things to do all right on the from Kansas City how are you okay what's going on well I just thought about it in the job at a company in April I have no one came close enough to maybe maybe five files and if not a little more maybe I think it's fifteen actually I have a coordinate notice things like it just not going anywhere five thousand dollars left on that at four hundred a month okay hospital bills then I have get with the city or the state or what-have-you nothing says right at maybe thirty okay what is the debt with the state they say they like overpayments rather than taxes or you know with the family okay and right now because of all that I either don't know where to start cannot figure out how to get focused and you and I think I'm gonna just focus there didn't focus you know making the first step well there's always I miss you say life having authority back yes I'm the frustrated with him I noticed I know there is somewhere there's a light and there's a silver lining but I'm trying to be true I try to get to it no I understand Jude and that is frustrating especially as you're trying to move forward having to deal with those issues that are always felt like they're pulling you back tell me this what is your household income to make around 40,000 a year okay and or is it just you I have myself in three three children one is 1980 versus 13 okay all right so you're a single mom okay and and trying to push and trying to take care of things it can get tiresome we can get frustrated frustrating with this hospital debt is are you paying anything on it per month I haven't that bought it okay have my gun started all these Asian that I had covered it but they're nervous you know that left over right okay was that for you or one of the kids yes for me okay you doing okay okay all right well here's the thing you know it definitely gets frustrating and I appreciate you reaching out and the mindset is is that I'm gonna I'm gonna focus on on this one thing at a time and realistically you know any kind you're dealing with the state and and/or the government with taxes it's really important to be clear on how much it is and and where it is and even if you don't have money Jude it's really important to communicate so step one is going to be if I'm coaching you step one is gonna be I'm gonna pull out this tax paperwork from the state I'm gonna call them set up a time to go in and sit down and talk with them about it to understand where it came from how much is truly owed and then what are the payment options okay it's so important to do this a lot of people would want to just throw it under the couch and ignore it you don't want to do that just call them have a conversation with them looking at this looking at your the taxes get need to go to the top we got to figure out what's going on there so that action step but in from smallest the biggest moving from there you've got car and then from there you've got the hospital debt now I'm gonna tell you something with medical debt it's really a matter of understanding what you can afford to pay they're gonna send you in bills that are ridiculous you say you owe around fifteen thousand you it wouldn't be unheard of for you to get a bill that says five thousand dollars right or two thousand dollars or something absurd and a lot of people feel like that that's a check that they need to right then and there that's not necessarily the case so I don't want you to feel stressed just because those bills come in number one we need to verify and make sure that hey what's here is actually what's owed because if you've ever had any medical debt oftentimes the insurance company will send multiple bills of the same bill so we need to clarify that so contact the state talk with them about what's owed and payment options reach out to the on the medical debt call the insurance company and to get that debt verified so you understand exactly what you're dealing with and once you do send them something meaning it might be 20 it might be $30 a month dude but send them something each and every month don't feel overwhelmed that you need to just find fifteen thousand dollars that's not the case and then obviously with the car we need to attack that and get that out of your life and so it's a matter of just taking it step by step and I tell you what I'm gonna do I'm gonna send you Financial Peace University as a gift okay Financial Peace University is a nine-week course helped over 5 million people walk through this very type scenario you're gonna hear teachings from Dave from Rachel and myself about how to walk through this because Jude you can do this okay you can I'm telling you I've seen people making a lot less with a lot more debt being able to walk through it but it's gonna require focus and I understand being frustrated and being tired and that's why I'm glad you called in because you're not alone you've got we got people that are on your side and so I also want to encourage you to get plugged in Jude to the everyday Millionaire Facebook group you're gonna have a great opportunity to talk to and interact with other people that are where you are some are maybe they fixed it now so they've been where you are but here's what you do just go to facebook.com slash Chris Hogan 360 click on the groups okay and then you can search for Hogan's everyday millionaires group now again this is not these are this a group is about people who are focused and not finished people that are intentional about trying to make progress for themselves so no you do not have to be a millionaire to be in the group this group is there are millionaires in there right but this group is comprised the people that are focused on their millionaire journey and you see you can be on that millionaire journey Jude because it's a mindset of what am I gonna do and how I'm gonna go about it so Amanda's gonna get your information I'm gonna send you Financial Peace University as a gift but I need you to do something I need you to participate I need you to get plugged in get plugged into the everyday millionaire Facebook group as well so you understand that you're not by yourself that you have actually people around you cheering for you so again definitely want all of you all to get plugged in this group is on fire and just rolling right and I love the encouragement but here's the deal I want to take a question from the Facebook group since I was just talking about them and Mike sent in how can we stay focused to pay off the mortgage when our payoff date is a decade away okay well Mike here's the deal remember when I wrote my first book retired spy remember I told you retirements not an age it's a financial number so the same can be said as you're attacking this mortgage you see what I want you to do is to throw every extra dime toward that on baby step six attack in the house and I don't care what the banks math says or the amortization table this date that you pay off the home as a matter of how focused you are and what you all are doing so ignore the amortization schedule right you all look at this things they tracked and plugged in on the balance and keep throwing every extra dime that you can at it Mike and I'm telling you I'm seeing people that are paying it off sooner because you get momentum remember getting out of debts not about map it's about momentum which means it's about your mindset and your focus so you can do this stay plugged in and remain intentional all right well listen I want to thank all the callers for calling in and sharing with me the things that are on your mind and the questions I want to thank the entire Chris Hogan show production team I've got Eric I've got a man got Jackie I've got Jeff this team is on fire to help you get better and remember until next time don't make excuses make progress [Applause]

31 thoughts on “What Society Won't Tell You About Credit Cards

  • Love the advice and the education about finances. However I think it easy for Dave and Chris to pay cash because they have bigger streams of incomes like their books and their shows.

  • Love your advices Mr. Hogan! I found Mr. Ramsey first this is how I found you. Thanks a million sir!

    I am on step 4 of the baby steps if I can everyone can do the baby steps!

    I am debt free ONLY mortgage I'm on my way to finishing up these baby steps in no time. I don't care for the plastics I shut them all down! 😊

  • you need more knowledge about credit and how it works.. you only spend what u can afford and use 30% of utilization and pay it all off every month so u don’t pay fees

  • I think the big part that was left out is if you decide to close all of your accounts before you are attempting to take out a mortgage. Closing the accounts does not result in an immediate indeterminable credit score; this takes year. This could adversely affect someone attempting to get the best rate on a new mortgage.

  • Little known fact. Potential debt can be worse then actual debt. Years ago I had multiple credit cards. When I paid off one credit card and kept it active, my other credit cards raised their rate on me because my potential debt changed. Proof to me how unethical credit card companies are. CANCEL THE CARDS.

  • I have 2 cards and have never payed interest once! For me, the problem with cards is, it’s easier to spend money you don’t see. Spend 100 on a card and it’s out of sight, out of mind. Spend 100 with cash and you’ll give it a second thought.

  • I got one credit card. I plan on having it paid off by January. Then going to tackle personal loan. I plan to pay that off by December 2020.

  • Please educate people on how to use debts to their advantage. The whole financial system is based on debts why would you use your own money while you could use monopoly money, banks are printing currencies like crazy, why would you save money? Rich people use debts to get richer. The problem is people do not know the difference between good debts and bad debts. Good debts generate you money, bad debts cost you money. Use the monopoly money(Bank's money) to buy real assets, not fake assets.

  • Credit cards are so beneficial! It’s insane to think people disagree and see them as a huge liability.

    It’s all about self control honestly.

  • Chris. You and the Dave team are such a blessing! I have been sharing your info to several people. Last year when your book came out, I shared your book and info to a coworker who had a lot of financial struggles. And continue to share. Last week I held my son’s college friends ‘captive’ and told them to look you all up especially Anthony. They were very interested. Then Saturday I was at HD and a young man was waiting on me and the manager had to check something and shared you alls info with him as well. You all do such a public service to get us all financially healthy. Blessings.

  • We are on the tail end of BS2 and I am so happy when I cut up my credit cards. For a few months I kept them for the "tiny" $10+/- in rewards each month. Since I couldn't pay it off immediately after (I'm talking about wanting to pay off the charge within minutes of using it), I decided to cut them up with joy. I just couldn't stand the thought of always "owing" a balance even for 2-3 days. That's the feeling you'd have to deal with if you want to keep a credit card thinking you will always pay off the balance. Nope, not for me. I use cash (my debit card) for anything I need. If I don't have the cash, I'll plan ahead to save up the amount. I has worked really easy for us the last 3-1/2 years of being on BS2.

  • I am not an advocate of credit cards either. But credit cards are good, if people know how to manage their urge and manage money. For example, Amazon pays 5% discount if you have their card. Tell me how can you get that 5% discount if you are buying with bank debit card. I know millionaires didn't get there with credit cards. But isn't free money good, if people know how to use credit card wisely?
    Just use the credit card to get the discount and pay it off immediately, so that they don't charge you penalty. Money disappears from bank even if you bought with bank card anyway. So why not people pay the credit card immediately of once a week, instead of accumulating debt!

  • So question, i see a theme that chris and dave hate credit cards, but if you are a person that pays off their total every month why wouldn't you use a card that gives you something back.

  • While paying off debt should I still pay tithes or take that money and trow it at my debt? and then start back giving tithes when I've paid off my my debt?

  • Ironically, after tracking every penny I spend, I actually spend less with a credit card because I want to keep my utilization ratio under 5% to improve my credit score.

  • Same old comments about credit cards. “Just be disciplined and pay them off every month so you have no debt but you get points “ 😂😂 I’m forever thankful to the Ramsey group for helping me see past that silliness. Zero cards for this girl and never looking back.

  • Credit cards do what you tell them to do. The credit cards companies are not responsible for your lack of financial discipline 🤷🏾‍♀️

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