Show Notes by 3 Comments

Cash vs. Credit Cards

June 28, 2015

He loves credit cards. She loves cash. Will they ever get along? In this episode, we discuss our varying views on the great cash vs credit card debate. We also discuss how we use credit cards in our financial lives.

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  • http://SteveStewart.me/about Steve Stewart

    Thank you guys for being another venue for financial education!

    I hesitate to comment on this discussion of cash vs credit because my little comment isn’t going to change anyone’s mind, but I just can’t help myself.

    Ashlee is right and Brian is sorta-mostly right.

    Here’s where you lost some points Brian:
    You said credit cards can be a great tool for someone who has their financial house in order. What is the definition or qualifications that makes someone have control over their finances? 80% of commuters believe they are above-average drivers. That means at least 30% are fooling themselves. The same applies to personal finances.

    Recommending credit cards be used by someone who thinks they have their act together is inviting a teenager to have protected sex. Let’s not go there, shall we.

    I won’t go into the facts about what using credit cards are costing you – and I don’t mean in the way of overspending. But they are. That’s why – as someone who teaches people to get out of debt – I can’t use them.

    BTW: Keep an eye on EnemyOfDebt.com over the next couple days 😉

    • http://savemoneydammit.com Save Money, Dammit!

      Thanks for the input, Steve! (Brian here). You bring up some great points, especially the question of what constitutes have “control over your finances”. My experience has always been pretty positive with credit cards (we’ve never had to pay any interest on credit card payments), but that doesn’t mean that everyone’s experience is the same. A credit cards in the wrong hands is a pretty dangerous thing. Also, I have to remind my self that spending less will always beat out even the best credit card rewards program.

      Even still, I find credit cards to be an interesting thing in the world of personal finance. We just interviewed a credit card churning expert on our latest episode, and even he agreed – credit cards are a BAD IDEA for most people. For us, we’ve just developed a really efficient system that includes a credit card to funnel our basic spending, and we enjoy discussing things like that.

      We’ve had some good discussions concerning this episode, and Ashlee does indeed seem to win this one! Thanks for stopping by. We appreciate the thoughtful discussion

      • http://SteveStewart.me/about Steve Stewart

        I saw the new episode but can’t listen to it. Credit card churning makes me nervous and queasy. It’s kind of like hedge fund investing to me: Trying to gain an advantage by betting against positive performance.