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Credit Cards Are Bad!?! – Are Credit Cards A Scam?

Credit Cards Are Bad!?! – Are Credit Cards A Scam?


What’s going on everybody David here today we’re talking about why people go into debt when they use credit cards But first off on this channel, we talk about inspiring people to travel more using points. That sounds like something interesting to you Please hit the subscribe button. Don’t forget to the little bail notification so you can get future updates on my videos All right. I’ve been wanting to talk about this for a while So there are a lot of people talk about credit cards are bad and they’re evil. I don’t think so I think credit cards are a real good tool and you can use those to earn points and you can use those points for travel But some people think ah, no, it’s not it’s it’s you know You don’t want to go down that road because then you just end up falling into debt and all that Well the way that I do things I actually I’ll talk about the way that I do things in a minute But let’s talk about how people go into debt when it comes to credit cards So what generally will happen and this is the way that I was raised you get a credit card and you have that credit card For emergency purposes and that’s the only only you have it only for emergency purposes So you might not save money the way that you would normally save for a rainy day You have that credit card and you thinking hey This is this will take care of me if if I have car trouble or something like that I can just pull it out use it and then pay it over time So most people are used to that whole thing of oh, I can use my credit card and just pay it over time I don’t have to pay it all up. I have some time to pay it That’s the wrong way to go and that’s how you go into debt That’s one way that you go into debt because now you’re paying that interest every month So you’re paying even more than what you what you were initially used a card in it to purchase so That’s that’s not the way to go about it And you you compound that with one two three cards and then now you’re really in the debt when it comes to credit cards because you have them all you have money on all of them you owe money on all of them every month you’re paying but you’re paying with the interest is is is just killing you so That’s one thing that you don’t want to do You always want to pay it off every month and you don’t Don’t get a credit card and think oh This is going to be a credit card that I’m gonna use in emergency situations Your emergency fund should be money that you actually save so save your money don’t get credit cards I think that that’s going to be your emergency your emergency fund because it’s not an emergency fund I now use my credit cards just like my debit card. I don’t use a debit card anymore I use my credit card for all of my purchases and then I pay it off every two weeks. That is my routine And so I never carry a balance. I never have to pay any interest or anything like that So it’s just something to think about when it comes down to credit cards. Don’t do that. Don’t be that person Now some people will get the cash back cards because they’re really flashy right or you get the the travel reward credit cards They’re really good. And those are the cards that I get. I love getting travel rewards credit cards I like to travel a lot but You have to understand the interest rates on those credit cards are much higher than a regular credit card So it’s even more important for you to make you make those payments every two weeks or every month never carry a balance Because what they do is they entice you by giving you points and giving you these different benefits so you’ll use the card and then when you use the card you don’t pay it off every month then they Have you and so what some people will do is and and I like to check every two weeks and the reason that I do It every two weeks and pay it every two weeks. And so I know exactly how much it is I don’t wait for that whole month to come because some people will wait and say you know what? I’ll pay it every month, which is fine. But sometimes I say for example you spent $4,000 in that month, right? You come to the end of the month and you look at that $4,000 and you think I don’t have enough money to pay for this so I’ll pay 3,500 and then I’ll just carry over 500 well You carry over that 500 and then the next month comes you spend another $4,000 and now you’re looking at your I don’t have money to pay for that so I’ll just pay 3,500 and I’ll carry over another another 500 and you keep doing that and that interest rate is just Killing you and so you get to the point where you fall way into debt so you want to make sure you’re checking your credit cards every Even if when you’re first starting out checking every – every week really you don’t have to check it every two weeks checking every week Just to see where you are and don’t overspend when I use my credit cards I’m not using credit cards because I don’t have money in the bank I have the money in the bank to cover all all of my transactions I’m just using the credit cards because I’m earning points with those credit cards. So that’s very important to understand Don’t don’t be that person that says all I want to buy the the new TV But I don’t have the money in the bank because you buy that new TV You don’t have the money in the bank you get your check And then you have to spend your check on some other things you think okay Well, I can’t pay half of the TV now and then I’ll pay the next half in a month You don’t want to do that kind of because that’s where you fall deep into debt. So credit cards aren’t bad You just need to know how to use them the correct way And in a lot of cases you can make money with credit cards because you’re getting these benefits You’re getting these points. You can redeem those points for flights. You can redeem those points for hotel stays You can redeem those points for cash back so you can make money with credit cards as long as you do it the right way So that’s all I wanted to share with you guys today, but I want to know what are your tips? What are your tips when it comes to? Using credit cards things that you’ve learned along the way please post it down in the comments below If you like this video, please give me a thumbs up. Please subscribe for more and I’ll talk to you in the next one. Bye

Comments (20)

  1. What are you strategies with credit cards? 🔔 SUBSCRIBE HERE: https://www.youtube.com/c/DavidClarkp…

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  2. I pay mine every night before I go to sleep. A little excessive but 🤷🏿‍♂️

  3. I pay mine every month. I literally have a checking account just to pay my credit cards. So when I use my card I either instantly transfer or deposit money to that account and before my statement close I pay my card but leave 10% of my credit limit. Then after I get my due date the same day I just pay it off and repeat. With this method in one year I went from 2,000 credit limit to start to 10,000.

  4. I pay mine every month in full, and I try not to use two many at a time. 👍🏽👍🏽

  5. Great advice. People should always have 0 balances every month

  6. I have never paid a single dollar of interest or fees on my credit cards. All my traveling for the last 2 years was free. I certainly don't think they are bad!

  7. I check my balance, credit cards and mint around 30 times a day

  8. Great vid! Love this channel

  9. Dave Ramsey sucks

  10. Traveling today, I spent $26 on Thai, $39 on Himalayan food. We don't normally do 2 sit downs while traveling, but I still have to ask myself, would I have spent $65 on food if I were paying cash? Possibly yes, but odds may have leaned a little more towards a cheaper 2nd meal. Studies show a debit card pretty much makes no difference, it has to be cash. Am I going to do it? Nope, I like my Gold Card points! I figure that I get the bulk of my points through business expense, where impulse has little to no bearing, far exceeds whatever personal expense I may overspend.

  11. Thanks for the video learned alot

  12. Credit cards should be paid off in full each month to avoid interest and to get the highest amount of points on a credit score.

  13. The "credit card for emergencies" mentality is absurd. An emergency fund is for emergencies.

    Credit is for leveraging the banks' network for financial centralization and consumer protection.

    Credit is not money. For people that treat it like a loan it's very expensive money.

    Credit should not be utilized unless there is cash at hand to pay it off at any given time.

  14. Pro Tip: open a bank account for every credit card and when you make a CC purchase transfer money into the account. When the bill comes you already have the money to pay it in your account.

  15. I check my balance every day lol. Only used it like 3 times.

  16. Credit cards are a scam invented by the wealthy (Rothschild family), to ensnare the middle and lower economic classes. Use debit cards only. Don’t even apply for credit cards. Rewards cards are a scam also. The interest rates are high and when you can’t zero your balance, they caught you in their trap.

    Buy used not new automobiles. If you can’t pay for it outright then save more until you can. Buy a small house to start and use cash. NEVER FINANCE ANYTHING. Financing is just a way for companies to hide fees and exploit you for years.

    Never work for anyone, unless you’re saving to start your own business. “Employee” is the new name for indentured servant and “worker” is the new name for slave. The ideal situation for the wealthy is to have you working for their company, yet virtually giving all the money you earn right back to them each month because of your debt… in perpetuity (as in “forever”). That way you are making them money and you essentially don’t cost them ANYTHING. The concept is economic marginalization.

  17. ain't gonna lie, when I was young I thought cc's where free money. learned a hard lesson and being more responsible with my credit now

    like anything else in life it requires self control

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