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When you pay with credit, their is typically a slight delay in when your loss is realized (e g. whenever your auto pay triggers). It seems like this delay has
by thatcherthorn 3y ago
When you pay with credit, their is typically a slight delay in when your loss is realized (e g. whenever your auto pay triggers).
It seems like this delay has huge effects some tangible some not. Dave Ramsey's preaching on only paying with cash certainly covers some of the psychological effects like:
- this is real money leaving my possession
- I can see how much I have left to spend immediately
- 2OEH8eoCRo0 3y agoI'm in my 30's and just got my first credit card (big mistake, don't do this). I learned personal finance from video games- if you don't have enough gold then you can't buy it!
- noSyncCloud 3y agoUsing a credit card responsibly is a good way to help build your credit. But you need a system – I can personally vouch for YNAB; I'm sure there are others – and you need to be disciplined and stick with the program.
- 2OEH8eoCRo0 3y agoThanks. I'm definitely not short on money but it was a shock when trying to get a mortgage! They basically said I don't exist without cards reporting.
- mecha_ghidorah 3y ago> Using a credit card responsibly is a good way to help build your credit Not where I'm from and honestly I've always kind of thought that was insane. If I were a money lender and two people came to me, with the same income and expenses, and one of them regularly used a credit card and one didn't I personally would expect the one who didn't use a credit card to be more fiscally responsible. Sure credit cards are commonly used enough that I would ding the person with one much just because they used one, but it baffles me to think that "avoids using credit and lives entirely within their means" somehow makes you considered less likely to pay off a debt in the US. It seems so backwards