Dave Ramsey, debt, credit cards, retirement, etc

[Mark44]

o

If you had a good credit card, you could have paid that on your credit card and earned $20-50 in rewards, cash back, air miles..., then paid it back immediately and paid no interest. That is what I do, I try to pay for everything on credit, property tax, groceries etc., and I usually rack up ~$200 in rewards that I use to buy tools, or something for the house. It works as long as you are disciplined and pay it off in full, or else the interest you pay offsets the rewards, but it works for me.

X2 everything I buy is on my Discover and I mean everything ...free money!:biggrin:

Mark44

 

[SuperJETT]

FYI!!!!! ramsey has it wrong on the way to pay down credit cards. the fastest cheapest way is the highest interest first. do the math.

Here we go again.

If it was all about 'doing the math' people wouldn't go into credit card debt in the first place, would they? It's about changing habits.

 

[SuperJETT]

If you had a good credit card, you could have paid that on your credit card and earned $20-50 in rewards, cash back, air miles..., then paid it back immediately and paid no interest. That is what I do, I try to pay for everything on credit, property tax, groceries etc., and I usually rack up ~$200 in rewards that I use to buy tools, or something for the house. It works as long as you are disciplined and pay it off in full, or else the interest you pay offsets the rewards, but it works for me.

You're so right, plus, if the payment got messed up and not credited ontime, I'd get hit with a late fee that would wipe out that 'earnings' in a heartbeat. Who was it, Wachovia? One of the big credit card companies just got nailed with a class action suit for deliberately messing with when payments were credited to cause more fees. CC companies suck, the market is saturated with cards, so they are having to jack up fees and interest rates and lower rewards so their stockholders stay happy.

It sure is nice to just pay for stuff and be done with it.

 

[tom21]

Here we go again.

If it was all about 'doing the math' people wouldn't go into credit card debt in the first place, would they? It's about changing habits.

well for me I have payed all last year on my cc and slipped once- actually they said they never got a payment but it was mailed a week prior and when they rec it they never credited the xtra fees. I think it was a good way to bump my interest. so now I am epaying. can't get lost in the mail now mfers!!

anyway- worked at it a whole year. 200 ahead! new strategy is I have transfered to 0% interest and even though its gonna be over a few more cards now I can just hammer the crap out of one and keep the 4k gone instead of just 200.

D- I meant no disrespect- just wanted to point out that if you are deadly serious about it- there is a faster/cheaper way to make progress. I am sick and angry over this debt- its ruining my quality of life and I want it gone in the worst possible way.

attack and never let up until you reach your goals!!!!

 

[Mark44]

o

You're so right, plus, if the payment got messed up and not credited ontime, I'd get hit with a late fee that would wipe out that 'earnings' in a heartbeat. Who was it, Wachovia? One of the big credit card companies just got nailed with a class action suit for deliberately messing with when payments were credited to cause more fees. CC companies suck, the market is saturated with cards, so they are having to jack up fees and interest rates and lower rewards so their stockholders stay happy.

It sure is nice to just pay for stuff and be done with it.

I have never had that happen to me in all my years. I pay my card of in plenty of time every time. There is something about free money I really like.

It is also time to start buying up stocks, there are some real goods deals out there right now.

Mark44

 

[SuperJETT]

I have never had that happen to me in all my years. I pay my card of in plenty of time every time. There is something about free money I really like.

It is also time to start buying up stocks, there are some real goods deals out there right now.

Mark44

It happens, both electronic and regular mail payments get screwed up. We have had some e-bill payments get messed up before but it was to utility companies and not a big deal in the end.

I remember one guy calling Dave Ramsey, he bought something on 24 months same as cash, setup automatic payments and at the end of the 24 months he got a bill for like $1200 in interest, because he miscalculated by like a dollar, so they backcharged the interest just like in the contract. That's a big 'oops'.

 

[Mark44]

It happens, both electronic and regular mail payments get screwed up. We have had some e-bill payments get messed up before but it was to utility companies and not a big deal in the end.

I remember one guy calling Dave Ramsey, he bought something on 24 months same as cash, setup automatic payments and at the end of the 24 months he got a bill for like $1200 in interest, because he miscalculated by like a dollar, so they backcharged the interest just like in the contract. That's a big 'oops'.

Yep I am sure it can happen and if it would ever happen to me they would be hearing from me. No one is taking any of my free money away. :cool2:

Mark44

 

[shawn_NJ]

It happens, both electronic and regular mail payments get screwed up. We have had some e-bill payments get messed up before but it was to utility companies and not a big deal in the end.

I remember one guy calling Dave Ramsey, he bought something on 24 months same as cash, setup automatic payments and at the end of the 24 months he got a bill for like $1200 in interest, because he miscalculated by like a dollar, so they backcharged the interest just like in the contract. That's a big 'oops'.

It definetly happens! My boss had the samething with a "24month no interest" from a major electronic store. For some "reason" they never recieved his last payment, even though it was setup automatic and the past 22 were fine. Luckily he left himself an entire month to make sure the balance was zero'd out. And after 3 phone calls they finally applied the last payment. He would have been screwed for over 2k in interest.

 

[jetskiier]

You're so right, plus, if the payment got messed up and not credited ontime, I'd get hit with a late fee that would wipe out that 'earnings' in a heartbeat. Who was it, Wachovia? One of the big credit card companies just got nailed with a class action suit for deliberately messing with when payments were credited to cause more fees. CC companies suck, the market is saturated with cards, so they are having to jack up fees and interest rates and lower rewards so their stockholders stay happy.

It sure is nice to just pay for stuff and be done with it.

Maybe not for everybody, but I've been doing it for years and never had a problem. I always pay for whatever I've bought by the end of the week I bought it in. I would guess I'm up over $1000 in rewards which are as good as cash at the store, if it's too much of a 'risk' for you, then cash is the way to go. Personally I look at it as a way to get back at the credit card companies. I'm not paying any interest, getting lots of rewards, and they get nothing from me (yet anyways). I've even taken a $5000 cash advance at 0%, put it in my high-yield savings account for 6 months, then paid it back. It only worked out to abotu $70, but it was free money, and all I had to do was make a couple mouse clicks.

 

[dbrutherford]

Tom, just keep hammering away!

I am finally out of credit card and student loan debt. But... I borrowed 6k from my mom to do it. I am paying her 500 a month for the next 12 months.

Then I also got stupid and took the 0% interest 36 month computer loan from work. I wanted a new pc and I figured since it is 0% interest why not. They take the money right out of my pay check before I ever see it. I am parting out my old PC and whatever I get for it I am just going to pay on the loan. Probably not the smartest thing to go out and buy but I have the money in my bank account so I could have just bought the pc out right if need be.

Now I am saving 1k a month towards my future hoem down payment and not spending any money towards credit card debt, student loan debt, or interest.

This December made 3 years since charging one single thing on a credit card!

 

[SeaLion]

You're so right, plus, if the payment got messed up and not credited ontime, I'd get hit with a late fee that would wipe out that 'earnings' in a heartbeat. Who was it, Wachovia? One of the big credit card companies just got nailed with a class action suit for deliberately messing with when payments were credited to cause more fees. CC companies suck, the market is saturated with cards, so they are having to jack up fees and interest rates and lower rewards so their stockholders stay happy.

It sure is nice to just pay for stuff and be done with it.

My C.C. is from my bank and I have it set to automatically deduct the minimum payment in case a transfer I make doesn't go through. This will enable you to never be late but it is only the minimum payment and you would have to pay the interest but no fees or credit ding. That said, I always pay off the balance a week in advance and then I can go online and see if the transfer was done. I have yet to have them screw up but know it can happen. That is why I pay it all off a little early each month which gives me time to correct a mistake they "might" make. I know most are not disciplined to pay off in full every month but to those that do, it is not so bad. I personally always get credit back instead of the overpriced rewards they offer or even miles. I usually wait to get up to $750 to $1000 before I ask for that credit. It usually takes me a year and a half to get enough points to qualify for $750. I am at that point right now. It's free money to me. The yearly fee is like $40 for the program so for 1 1/2 years ( $60 in fees) I get $750 to $1000 in credit back on the card. Works for me.

 

[Matt_E]

Whatever works for you personal situation.

I have personally sworn off credit cards, but that's just for me.

Whatever floats your boat.

 

[SeaLion]

Whatever works for you personal situation.

I have personally sworn off credit cards, but that's just for me.

Whatever floats your boat.

$750 to $1000 floats my ski for quite some time, especially with current fuel prices :biggrin:

 

[Matt_E]

I pay cash for everything these days.

Floats my boat quite nicely.

 

[SeaLion]

Nothing wrong with that.

 

[Matt_E]

Personal finance.

 

[SuperJETT]

I really like how simple things are when you pay for things up front. No remembering to pay things later, checking to make sure your payment went through, etc.

It really does reduce stress, especially when you have a full-time job, 3 kids, etc etc.

 

[jetskiier]

I just set up 3 new accounts with automatic withdrawls in my ING account (no minimum, no fees, 2.7% interest right now), one for vacation, one for auto expenses, and one for toys. I already had one for an emergency fund, and one for taxes and insurance, kind of like a digital envelope system.

 

[grasshopper]

I just finished the book and It was very informative. Glad I looked at this thread. We have all been brainwashed that credit is the only way... Glad I learned my lesson early. Starting step number 1!!!!

 

[douglee25]

I just set up 3 new accounts with automatic withdrawls in my ING account (no minimum, no fees, 2.7% interest right now), one for vacation, one for auto expenses, and one for toys. I already had one for an emergency fund, and one for taxes and insurance, kind of like a digital envelope system.

Exactly what I do. I just lump everything into one account and withdrawal as needed. I actually just increased my withdrawal amount by $120/month ($60/paycheck) to help with other unexpected expenditures.

Doug