Explain to me how paying 20% to 30% interest for something you think you need now can be a successful financial tool for anyone other than the credit card company.
Let me tell you what Dave Ramsey is selling. He is selling the very rare commodity of Common Sense and peace of mind. If you don't want that, or don't need it, then don't listen to him. Wow, how hard is that?
Well that would not be an example of "successful" use of the financial tool, would it?
Now, what would you think about using a card with 7.9% interest for a few months as a "bridge loan" between the renovation of a new home and the sale of the old home. This at a time when the cost of getting a HELOC or personal loan would be a higher interest rate or incur loan set-up costs?
Credit cards are a tool, just like a table saw. Can you seriously maim yourself with a table saw? Yep. Should you never, ever use a table saw? Nope, sometimes it's the right tool for the job; just be careful.
I’ve never listened to him, and I’m not sure I’ve heard of him.
But, if he’s telling people to cut up their credit cards or to pay off any balance each month so there are no finance charges, then he’s right on the money.
Sometimes it’s possible that the guy who has had a couple of failures at starting a business is the guy who really has learned how to do a business start-up.
It’s the old trial and error process. If you’ve got the endurance and the cash, then it actually does work.
Credit cards? Yes, a tool. I don’t like to carry cash. I’ve had a credit card since I was 18. It’s great for establishing credit, you just have to be careful. My husband and I use it routinely, but we pay off the balance every month and never purchase more than we can afford. Meanwhile, our cash is sitting in a money market account and accumulating (a measely, but still it’s something) interest the whole month. There’s a lot to be said for being an adult and having some self control. If you know you’re not that kind of person, then go with cash.