Why I NEVER Use Debit Cards
Here's an explanation of why I don't use Debit Cards anymore. We also talk about the difference between Credit and Debit cards, and who each card is good for.
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Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
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⏱️ Timestamps:
0:00 – Start Here
0:53 – The Controversy
2:11 – Debit Card Benefits
4:03 – Credit Card Benefits
9:03 – Credit Card Dangers
10:22 – My Opinion
Yup debit cards are evil, I exclusively use credit cards
haha
Second
Nah you’re 3rd slowpoke
Second!
Credit cards are good if you know how to use them. But most people don’t😢
You can use credit cards as long as you pay it off that month. Advantage is you get reward points and travel points. Disadvantage if you’re a compulsive buyer you might max out your cards. I am debt free.
Yup, never buy something “for the points”. Just use credit cards to buy things you normally would buy and you’ll be good.
Except in Quebec…. Here you don’t have the choice…. Yeah ! It’s crazy !
I spend less when using cash or debit cards. I understand the whole points and miles thing, and the protections with credit cards. But my life is simpler when I don’t have to worry about payment dates and possible interest.
thats exactly right – I do spend less when I just have cash too.
Could we get a portfolio update Humphrey, it’s been a hot minute since you have posted a portfolio update
You’ll need a debit card in US post office only😂
What do you guys use? Let me know in the comments…
If your budget is $10,000.00 on food per year, and you get back $300.00. Wouldn’t it make more sense to simply cut down your expenses to $9,700 and you wouldn’t need a credit card? You’re not going to beat the banks, Dave is right here.
Or you keep your budget at $10,000 and then you have $300 to spend on anything as rewards. Or apply it as a statement credit and then you got $10,000 worth of food for $9700
@@ethantennison5843 My opinion and argument is that I think no one needs to spend $10,000 on food. The point is that these people will spend more to meet the threshold. People who have a 5% Discover card or 5% Freedom Flex are *looking* for ways to cap their $75 return per quarter. For instance Discover is at 5% Walmart. If Walmart jacks up their prices for items during this quarter, they’ve already made their profit the moment you buy anything from them. If you spent as you would regularly, you win. BUT if you even once get in your car to travel to Walmart because you know there’s a 5% discount, I’d argue you didn’t need to make the trip in the first place saving you 100% of the total trip.
Dave Ramsey advice is for financially incompetent folks who are deep in debt. If you know you are financially responsible, then there’s nothing to worry about and a majority of Dave’s advice is pretty god awful.
This is where you’re wrong. The advice that people who have credit cards spend more is true for everyone. This has been proven to be true. If you get an offer for 5% on a $2000 spend. You’re going to find a way to meet that threshold and I can guarantee you more than 5% are going to be spent on items you could have done without.
@@ret4kind got proof to back up that statement? Because my American Express statements say otherwise…and again…if you spend more with a CC but still pay it off every month, why does it matter? I’ve racked up enough points on my card to travel to Japan and back home TWICE and I have never got a late fee or interest payment.
@@ret4kindabsolute rubbish……😂😂
@@PrimitiveAK “if you spend more with a CC but still pay it off every month, why does it matter?”
“if you spend more with a CC”
“spend more with a CC”
“spend more”
Super debatable, I’m now transitioning to only using debit cards since my credit cards are maxed out. Debating about pulling from my Roth to pay the debt, it doesn’t take long or much to over spend and loose track
Just be responsible and you won’t run into those issues.
I use debit for personal expenses since I’m an impulsive user of CC lol. All bills are paid on CC however
Credit cards should be treated with the mindset that you are just spending your money and paying off the balance once a month instead of as they are charged. And you’re earning rewards on it.
Credit cards are only bad if you THINK of it as instant money. But you should only be spending the money you have.
Budget with YNAB, payoff the card weekly or biweekly. Big fan of Dave, love when people call him and debate the credit cards. Don’t waste your time, he’s not changing his stance.
I hate owing anyone anything. Credit cards monthly payments aren’t worth it.
Just pay it off the same day so it won’t feel any different.
Why do I feel like this is a direct response to the Ramsey show video posted not even and hour ago, where a husband is trying to convince his wife to cut up all the credit cards 😂
I only use my debit card to get cash at the dispensary 😂
Should just be getting cash at the grocery store instead or something but I’m lazy
George just blocked you