The Bottom Line: Credit Cards

The Bottom Line panel talks credit cards. What you need to know about how many to have, how to use them and who’s really ringing up the cash.
Video Rating: 4 / 5

Josh in Indianapolis uses a credit card for the rewards and pays it off every month. Is it really that bad? Dave answers and gives his reasons.

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IN THIS VIDEO: Dave Ramsey, The Dave Ramsey Show, Financial Peace University, FPU, The Total Money Makeover, budget, envelope system, emergency fund, baby steps, radio show, debt freedom, EntreLeadership, mortgage, ELP,, money, finance, economy, investing, saving, retirement, cash, mutual fund, stock market, business, leadership, credit, drtlgi
Video Rating: 4 / 5


  1. A55tech says:

    I’ll take the $400 a year thank you very much. Been doing it for over 10
    years. Sometimes $400 on a single sign-up bonus.

  2. Neapolis says:

    Yes, He is wacked out! He is selling Snake Oil! Period!!! Keep buying his
    books and making him richer. Real Smart, isn’t it?

  3. Amy browneyes says:

    so this guy gets back $400 a year by using the credit card… if he paid
    cash instead and saved 20% on his purchases by spending less he would
    either make his $400 back or even more than than. I think you come out on
    top more without using the CC. Banks are NOT going to give you something
    for free! there is always a catch and you end up paying one way or another

  4. BCampbellGBC says:

    I have a credit card that averages $300/year saved on groceries. Any extra
    money I save on my monthly budget I put in an account I call “the slush
    fund” it’s the money I use when an unexpected expense comes up that isn’t
    an emergency. Credit cards aren’t evil if you play the system and don’t let
    the system play you. Just my opinion and everyone is entitled to one. Never
    been in debt.

  5. MissWinner247 says:

    I actually spend less with my credit card! I save anywhere from $50 to $100
    a month at the grocery store and I use a CREDIT CARD!

  6. Ramblin' Wreck says:

    $600-700 in cash back a year is nothing insignificant for my family.
    Especially when a majority of my spending is on “everyday” type purchases
    (i.e., I HAVE to spend the money). Am I “making it rich” because of it,
    Dave? No. People paying cash are subsidizing my responsible spending.
    Sorry, man. Not following your advice here.

  7. Mark Suggs says:

    People who succumb to the kind of marketing-induced, impulse-spending
    habits should not have a credit card. But for someone who doesn’t succumb
    to that, who recognizes spending a paper dollar isn’t any different from
    spending it with plastic, a credit card can be a financial benefit. Besides
    the cash-back value, all my purchases are tracked through my cc statement,
    so I have better tools to analyze my spending. A “never use credit cards”
    argument is as disconnected from reality as a “never drink alcohol and
    you’ll never be an alcoholic” argument: responsible people can enjoy
    alcohol without harming themselves or others. The problem isn’t the credit
    card or the alcohol: it’s the irresponsible person. Start fixing the
    problem by teaching responsibility, not making a blanket ban on a financial

  8. disposablefreedom says:

    Oh c’mon, I have credit and debit cards, I have the best credit ever,
    hopefully gonna buy another house and rent the one I own now out.. If
    you’re disciplined and can manage your money well there’s no problem having
    one.. I spend less with plastic..

  9. Douglas Moran says:

    This guy’s ignorance is astounding.

    He suggests a cash back of $400 is irrelevant! He suggests the effort to
    get that cash back is huge. Really, $400 is $400 you would not have without
    the cash back card. There is no effort to get that $400.

    Not fully using the credit system is silly. Use it well and enjoy the

    Listen to how old Dave tries to refute this caller. Nothing but hyperbole
    and fear. 

  10. FortNikitaBullion says:

    I do believe cash back can make you a millionaire. Can’t tell you how many
    investments I bought using reward money.

  11. Madeline Winters says:

    This guy is a moron. Credit cards are significantly better than debit cards
    for several reasons unless you’re a crazy compulsive spender and have no
    self control.

  12. gene says:

    “someones putting a bag of potato chips on a freaking credit card”, this
    guy obviously isnt up to date on normal life. he probably is one of those
    people who gives his grandchildren 10 cents for their birthday and says “go
    get a pop and some of those vidoe games”

  13. D.DeFerrin Granberry says:

    ‘YouTube’ is for idiots Jon, it being commercialized is proof. You are
    emphasizing the profitable aspects of it at the expense of quality, now.
    But don’t BS, really educate, and you might make more money through the
    ‘Pay Per Click’ feature on this thing.
    Unless a person is generating substantial profits in 30 day windows or
    periods, and need every dollar they have to do so. It does not make a
    difference whether or not they pay now or in 30 days. It is still an
    expense, gone forevermore, that must be paid. And to suggest that it is
    wise to pay more for anything, through a mechanism called ‘interest’, is
    idiotic and whomever should follow that ill-advised thinking is foolish.
    Again, truly educate, inform your audience on how to purchase tools of
    investment and how to use the purchasing/buying power of it while retaining
    the full value of said investment. I believe the creator will give you the
    riches of your desires then, naturally. ;-)

  14. Jorge Almazan says:

    You should have a credit card for purchases because you are insured that
    way. Debit cards are not insured. If your debit card gets stolen and/or
    gets compromised you will be out of that money til you are proven innocent,
    per say. Credits cards are the opposite

  15. Slidellian says:

    For whatever reason, Dave Ramsey is obviously carrying a grudge against the
    credit card companies. Let’s look at the smart steps the caller is taking:

    1) Uses a credit card to make his purchases (convenience, also no need to
    carry around much cash)
    2) Pays his bill in full every month (never pays interest, also helps him
    build credit)
    3) Gets $400/year in cashback rewards from the credit card company (free

    But Arrogant Dave says he’s wrong. What a wacko. DON’T listen to him.

  16. Jeffery Chapman says:

    The rationale for using cash (a visual/tangible symbol of your
    money/value) in stead of plastic is certainly relevant for a segment of the
    population but I believe that segment is declining. The sense that paper
    money suggests a stronger sense of value and financial +/- is a historical
    cultural thing. There is nothing empirical about paper based money. It is a
    human created system that is fading and I suspect that in time electronic
    based numbers will be more associated with true value than paper. I know
    for myself, paper money just seems like monopoly money these days and I
    feel a much greater sense of value when looking at my numbers online. Paper
    money will likely almost disappear in many markets soon so hiding from the
    inevitable situation is likely counterproductive. Learning to live in the
    electronic age is very important. And, NO, paper money is not the same as a
    gold coin, and, NO, there is nothing sinister or inherently evil in the
    electronic medium compared to the paper. There is no value in paper money –
    it is simply just a record in a database the same as the
    transactions/balances in my electronic bank account. I believe that in the
    future, watching your money and cash flows electronically and managing
    spending over time and from a high level with an understanding of your
    budget will be a much more required skill than keeping that pile of paper
    from getting smaller. It’s just the way it is going to be.

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