I’m still trying to figure out why people think I’m foolish for using a credit card instead of a debit card. I’m a Dave Ramsey listener and fan so I’ve heard him rant and rave over the credit card — burn it, torch it, drown it, just be sure to kill it (if you’re not familiar with Dave Ramsey here is an introduction). Seriously though, don’t you think the whole no credit card intolerance has gone a little too far? When you take off your thinking cap the results can be dangerous.
Photo by MVI via Flickr
I imagine the following discussion.
Setting: A nosy neighbor comes into my home and sees my circular saw and says:
Nosy Neighbor: “Hey Craig, you need to stop using that saw because if you ever took the blade cover off it would slice off your finger.”
Me: “But I never take the blade cover off.”
Nosy Neighbor: “I’m just saying if you did take it off, it would be dangerous.”
Me: “I don’t take it off.”
Many of the conversations I have had about credit cards and debit cards have sounded much like the conversation above — except we talked about the two forms of plastic. The concerned citizen says my credit card is a danger to my family, my future, and my finances. I say my track record has proven otherwise. And around and around we go in circles. It is almost as if people are unwilling to have a rational discussion about the advantages of credit cards.
If the discussion was about plastic versus cash, then you have some valuable arguments in favor of cash being cheaper. However, because plastic is more convenient people start to make a big deal about how you should use a debit card and not a credit card. If the discussion were about poor money managers who did not use credit wisely, then my view would be different. But for people who manage their purchases and pay off their bills each month, I think carrying a credit card is fine. And to be on the safe side, our family has established some credit card guidelines that protect us from improperly using the cards.
Why Credit Plastic Demolishes the Weaker Debit Plastic
1. People do not spend differently using debit or credit forms of plastic.
Let’s say you are filling up with gas at the local gas station. …