5 ms·

> use a debit card instead of a credit card and rent This only helps those who cannot read or write spreadsheets, don't understand cashflow or otherwise are no

> use a debit card instead of a credit card and rent This only helps those who cannot read or write spreadsheets, don't understand cashflow or otherwise are not aware of finance 101. Credit is a tool and knowing and putting leverage to use is critical to success in life. I save an average of 5% and sometimes upto 25% of my expenses through the judicious use of credit card rewards and promotions. Credit card companies are willing to take losses to have me as a customer and sign me up. > how mad it is that as a society it's normal if not encouraged to live on debt or one or two paychecks away from being broke This is a design parameter and not a coincidence. A majority of current work is busy work - if the people doing it had some savings, they would stop doing that busy work. The employer knows it, the employee knows it and they continue to do it. Encouraging "money in, money out" keeps the hamster wheel rolling and the economy pumping money through the system.

jessaustin 6y ago
Credit card companies are willing to take losses to have me as a customer and sign me up. No, they are desperate to pretend they've shored up a failing business model, and so they must constantly lure in more potential victims. You are temporarily subsidized by these schemes, but don't come crying to us when you end up behind the curve in confusing and changing credit terms. I agree with your claims about busy work and hamster wheels.
- tialaramex 6y ago
  In the US a significant fraction of the wealth transfer from the poor via credit happens with these cards. The EU set a maximum limit for interchange fees, you'll notice such "amazing" reward cards do not exist there. In the US what happens is the card company says to Bob's Hardware, you must accept all our cards or you can't accept any cards, and our "Premium Reward" card has 7% interchange fee so when Jimmy presents his "Premium Reward" card for a $1000 purchase, the card company takes $70 of that. Jimmy gets $50 and he think he's a genius for having this card. The hardware store needs to raise prices for all customers to allow for people like Jimmy. So when Sarah, whose crappy job barely is enough to live on buys a product that would be $500 the store charges $540. Sarah's card only has an interchange fee of $10 and Sarah gets none of that, but the shop owner is legally prohibited from charging Jimmy more than Sarah and they're legally prohibited from refusing Jimmy's card unless they also refuse Sarah's.
  - jessaustin 6y ago
    Lots of gas stations violate this "legal prohibition". I suspect an enterprising lawyer could create inconveniences for the credit card firms, such that they'd have to purchase more horrible laws to keep the racket going.
    - subhobroto 6y ago
      > Lots of gas stations violate this "legal prohibition" Uhm technically yes, but functionally no. When gas was routinely $3.5/gal in SoCAL (where I live), credit price used to be $3.5/gal and cash price $3.4/gal. My credit card gives me straight 5.2% cash back on purchases at the pump. I hence pay $3.3/gal - still less than the cash price of $3.4/gal.
Gwypaas 6y ago
That's because the ridiculous fees that credit cards have in the US which funds that for you. In EU the max cap for merchant fees using credit cards are 0.3% and 0.2% for debit cards. Just a quick search here in Sweden the "best ones" totes zero interest for 45 days, one has about 0.4% cashback if you book flights with them, probably regular flights and not combined with other promotions.... Can't be bothered to dig in. All have much much higher fees regarding atm withdrawals and global purchases compared to debit cards. Other tries to have "10% off using the promotion store at this online store" whatever that means. Probably stuff you never needed in the first place.
- subhobroto 6y ago
  > Other tries to have "10% using the promotion store at this online store" whatever that means. Probably stuff you never needed in the first place. I respond to those 10% aggressively. I can assure you those 10% off at Walmart is used to purchase durable, essential goods. Those 10% off at Advanced Auto Parts are used to purchase parts for my 98 Toyota Camry that I love to maintain myself and has 270k miles on it. There is no reason why anyone here cannot replicate this when I can.

jessaustin 6y ago

Credit card companies are willing to take losses to have me as a customer and sign me up. No, they are desperate to pretend they've shored up a failing business model, and so they must constantly lure in more potential victims. You are temporarily subsidized by these schemes, but don't come crying to us when you end up behind the curve in confusing and changing credit terms. I agree with your claims about busy work and hamster wheels.

tialaramex 6y ago
In the US a significant fraction of the wealth transfer from the poor via credit happens with these cards. The EU set a maximum limit for interchange fees, you'll notice such "amazing" reward cards do not exist there. In the US what happens is the card company says to Bob's Hardware, you must accept all our cards or you can't accept any cards, and our "Premium Reward" card has 7% interchange fee so when Jimmy presents his "Premium Reward" card for a $1000 purchase, the card company takes $70 of that. Jimmy gets $50 and he think he's a genius for having this card. The hardware store needs to raise prices for all customers to allow for people like Jimmy. So when Sarah, whose crappy job barely is enough to live on buys a product that would be $500 the store charges $540. Sarah's card only has an interchange fee of $10 and Sarah gets none of that, but the shop owner is legally prohibited from charging Jimmy more than Sarah and they're legally prohibited from refusing Jimmy's card unless they also refuse Sarah's.
- jessaustin 6y ago
  Lots of gas stations violate this "legal prohibition". I suspect an enterprising lawyer could create inconveniences for the credit card firms, such that they'd have to purchase more horrible laws to keep the racket going.
  - subhobroto 6y ago
    > Lots of gas stations violate this "legal prohibition" Uhm technically yes, but functionally no. When gas was routinely $3.5/gal in SoCAL (where I live), credit price used to be $3.5/gal and cash price $3.4/gal. My credit card gives me straight 5.2% cash back on purchases at the pump. I hence pay $3.3/gal - still less than the cash price of $3.4/gal.

Gwypaas 6y ago

That's because the ridiculous fees that credit cards have in the US which funds that for you. In EU the max cap for merchant fees using credit cards are 0.3% and 0.2% for debit cards. Just a quick search here in Sweden the "best ones" totes zero interest for 45 days, one has about 0.4% cashback if you book flights with them, probably regular flights and not combined with other promotions.... Can't be bothered to dig in. All have much much higher fees regarding atm withdrawals and global purchases compared to debit cards. Other tries to have "10% off using the promotion store at this online store" whatever that means. Probably stuff you never needed in the first place.

subhobroto 6y ago
> Other tries to have "10% using the promotion store at this online store" whatever that means. Probably stuff you never needed in the first place. I respond to those 10% aggressively. I can assure you those 10% off at Walmart is used to purchase durable, essential goods. Those 10% off at Advanced Auto Parts are used to purchase parts for my 98 Toyota Camry that I love to maintain myself and has 270k miles on it. There is no reason why anyone here cannot replicate this when I can.