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Credit Cards (in the US)

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hyiu:
"its EASY to beat a 3.25% return......"

I'm having trouble with this easy part....

actually, if you can manage your money at about 5% annually, you are already better than MOST fund managers...


JeepMonkey:

--- Quote from: Fordman on March 16, 2011, 02:21:35 pm ---
Im on the Dave Ramsey plan, pay cash! So far, Im debt free except the house and if we stay on the plan, it will be paid off in the next 6 months.


--- End quote ---

Good for you.  I am pretty much at the same point.  Living debt free can not be measured, it is such a great thing/feeling.

Samstag:

--- Quote from: ChadTower on March 16, 2011, 03:13:06 pm ---
--- Quote from: Samstag on March 16, 2011, 03:03:18 pm ---Why pay cash when the banks are willing to pay you to use their card?

--- End quote ---


Mostly because cash is a relatively zero risk proposition.  You're not running up a balance to be paid at the end of the month.  The risk of running that up and something odd happening so you can't pay it off within the cycle does exist.



--- End quote ---

That doesn't make sense.  If I buy the same amount of stuff on credit as you buy with cash, that "odd happening" that keeps me from paying off the entire balance would be a bigger problem for you, since your cash is already spent.  I would have the option of paying a month of interest while still covering that "odd happening".  You'll need to borrow the money and you may not have the luxury of finding a reasonable rate on short notice.

But I don't operate without emergency reserves (as you shouldn't whether you pay in credit or cash), so it's all the same to me.

Gray_Area:

--- Quote from: pinballjim on March 16, 2011, 05:38:47 pm ---Yeah, being debt free is definitely one of the perks of not going to college for sure.


--- End quote ---

Not necessarily. Some people have parents who pay for it. Others get grants or use the military, etc.

Fordman:

--- Quote from: Donkbaca on March 16, 2011, 03:40:04 pm ---
Why are you paying off your house?  My house is financed at like 5%, but I get a tax break for the interest I pay on it
--- End quote ---

Wow, so you'd rather pay a bank/mortgage company $20,000 a year for a $10,000 tax deduction? Seems like your $10,000 in the hole! No Thanks! I'll take the paid for house.

Let me see, paid for house means no chance of foreclosure, if sold, all the money goes to me (and taxes if I dont buy another house within a year), lower insurance rates and the house is MINE!

Fordman

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