Cardboardcubbie t1_iugexqm wrote on October 31, 2022 at 3:02 AM

Only if you have the discipline to pay it off every month. 2% cash back isn’t worth the headache for me. And if you miss one month and carry over a balance the 22% interest is going to eat into that cash back real quick. I know Dave Ramsey isn’t the most popular around here and yes he’s very conservative on debt, but he’s not wrong that not everyone that says they’ll just use a CC for rewards and pay it off every month actually don’t. Actually most don’t.

KReddit934 t1_iugfts3 wrote on October 31, 2022 at 3:09 AM

I'm curious what the statistics really are. I know a lot of people who do pay off every month and collect the rewards (though I also know people who think CCs are for buying things you don't have the money for.)

Just did a quick Google search and got 45% pay in full each month, another 6% only charged one big thing in a year.

Cardboardcubbie t1_iughfkr wrote on October 31, 2022 at 3:24 AM

Yeah I don’t know the exact numbers. But I think a lot more than 45% started out saying I’ll just pay it off every month. Roughly 900 billion in American credit card debt can’t be wrong ….

KReddit934 t1_iugj5du wrote on October 31, 2022 at 3:39 AM

I get what you are saying...people start small then fall behind and it's so easy to keep buying. But I think there are also lots of people who start out in debt with a big "I-can't-cover-this-(vet/doctor/car repair/new furnace)-bill, so I'll put it on the credit card...that's what it's for." And also a bunch who lose their job and use the CC to hang on while job hunting. I'm not convinced that using CC for everyday purchases is really a gateway drug for debt....it would be a fun question to research.

Cardboardcubbie t1_iugn7d5 wrote on October 31, 2022 at 4:21 AM

It would be interesting I think. But if someone couldn’t afford an emergency unexpected bill like a vet or doctor, they don’t have an emergency fund, so their finances probably aren’t the best. And those are the people most susceptible I would say to falling behind on a credit card. Like I said. If you 100% have the discipline to pay it off every month, go for it. But I think that also means you have a healthy emergency fund so that an emergency doesn’t cause you to not be able to pay it off at the end of the month.

BacktotheFutureTmw t1_iujo8na wrote on October 31, 2022 at 8:57 PM

I would also like to know. I have been using CC's for all purchases (except those that tack on a CC fee) since I got my first card at 18...over 20 years and I've never not paid in full except when I had a 0% APR and threw a big purchase on it for that reason.