That's why I called this thread "the redneck edition" lol :)

I don't listen to Dave Ramsey a lot; for one thing, he seems pretty dogmatic about many of the things he says. However, his audience (not necessarily rednecks) are usually the ones who need someone to tell them they're being stupid with money and try to educate them. If you leave it up to the banks, they'll just paint a pretty picture and then gotcha!

BTW, it's not just the 'less sophisticated' who don't get it. I recall an incident a few years ago - I was having lunch with a co-worker (university grad, wife same, etc.) and he told me has had an AA card for years and he puts everything on that. He proudly boasted that his wife was on a trip to California and she paid for the flight with miles. "How many miles?" I asked. "25,000" he replied.

"So", I continued, "does that mean you've spent 25 grand over the last couple of years to get that flight?". He said, "I suppose so."

I told him I had just that weekend applied for and got an AA card and they gave me 25,000 miles just for getting the card. He said, "Hmmm".

We were staying at the same hotel - I told him he ought to get the card for the chain. He'd get a nice point bonus which, at worst, he could transfer to AA miles, and that instead of getting points he could just get AA miles for every stay; I think it was something like 500 miles/stay. He said, "Hmmm".

So, the next week I asked him about it, and he told me his wife didn't want any more credit cards - they couldn't afford it. I gently explained that having the card was not the same thing as using the card, and certainly not the same thing as maxing it out, but no matter how I explained it, he just didn't get it. Credit card = must spend up to limit = impending bankruptcy.

I don't make these kind of suggestions any more. Some people just can't wrap their minds around it.

to each is own I guess. Aw well, more for us :)

I love credit cards. First discovered them about 3 years ago. My student loans gave me good enough history that once I finally got approved for my first card which was just a simple capital one cashback card after about 6 months or so I was able to get prime cards.

Chase United explorer which I used the miles to go to Mexico City last year. Between flying, spending, and the signup bonuses on my Citi AA and Barclay US cards I have 140k miles combined in both programs.

Then this year was nice. This spring got the 50k Southwest points Chase card, then redeemed those points for flights this fall to Seattle, Salt lake city, and Kansas City. In a few weeks will app for Barclaycard Arrival, plan on using the signup bonus to cover my hotel stays in those 3 cities, so the only travel expenses I will have for those trips is the 9-11 security fee, public transport, airport parking, restaurants, etc and other small stuff.

The reason I am going to those 3 cities? I will be watching my alma mater's women's college volleyball team play games in those cities.

Traveling on points to see 3 women's college volleyball games in 3 different cities. How cool is that! ^

Of course my friends and family don't really grasp the concept. Get responses from them ranging everywhere from I am getting myself in credit card debt, to thinking that I am scamming the system and it is unethical or something.

Thing is, after 3 years playing this game I haven't paid a penny in interest. Paid the annual fee on my AA card last year, but it was cancelled out with a statement credit, only money I have paid in the form of a fee or interest charge was the annual fee on my Southwest card because it is not waived the first year.

I love credit cards! :D

We are a different lot here on flyertalk. Most people think the credit card rewards game is dangerous, or cheating the system. Most also think flying to volleyball games is a waste of money or time. Well I do both. lol :p

At first, I thought Dave was a crazy dude :D But-he got some points (and not him only)-we do spend more when paying by cc. Doesn`t matter how disciplined we are, we still get trapped into "free money" aka plastic.

So, actually, it`s not that funny, but I am sure glad that this game is not for everybody.

As many of you know by now, I am physically disabled
Today I took a share ride taxi to a doctor appointment in Dallas. Along the way the driver stopped to pick up a visually impaired passenger.
Along the way to my destination the driver and this guy started talking about what each did over the 4th weekend
Then the conversation gradually crossed into credit cards... Apparently, this guy although he admits it's wrong, spends too much and pays interest (0 or 9% with bofa and Chase respectively)

Here's the kicker though..
He then started talking about his "wealthy' friend who has about $100k sitting in a checking account, but yet his wife manages to rack up about 30k in late fees "simply because she can".
Now tell me there's something wrong there!
But again I can't complain because probably a good portion of that money is used to subsidize my travels

Another true but ultra conservative Dave Ramsey mini rant on "aggressive credit card marketing"
It's a funny one

Aggressive Marketing From Credit Card Companies: http://youtu.be/8uH9esEtpko

Dave's point about credit cards is precisely the reason that we are all making out like bandits in the miles game. MOST people in the USA overspend, pay interest, go into debt, etc. They're swiping for potato chips and carrying the debt for months or years. That's why those fat n' sassy sign up bonuses keep coming. They've got the chum in the water and the fish can't resist the bait.

Of course, the banks would lose money on large segment of the population like us <nudge nudge, wink wink>, they already do! We are not profit makers. Speaking for myself...I haven't paid a late fee or interest charge on a credit card in at least 20 years. I have paid some annual fees, but that's it, and I weigh those out carefully.

I booked 10 r/t ticket to Europe on points in the past 2 weeks alone. Yay for me and my spending! Yes, the bank makes the swipe fee, but 2% pales against 25%, no? Case in point, every FT page has an affiliate link on it. Just like the house in Vegas can win on slim odds, those slim odds work out every time. The banks know that a large enough segment of the credit card holding population will get the cards and run a balance.

dang dude, holly cow that's some impressive stats
PS
Did you see the part in the video, where Dave was telling the story about some guy who used a fake SSN, pretended he was named "Buck Naked" and still got a credit card approved and issued, how would that even be possible?
I was thinking name and address matching,but "Butt Naked" doesn't live at any address

That is where you are wrong. He lives in Liberia. http://en.wikipedia.org/wiki/General_Butt_Naked

Lol , but I rewatched and edited my post, it's "Buck Naked"
Sidenote, let's hope the General doesn't come down with Ebola

This is the breakdown on credit vs cash transactions on a retail business I owned for 30 years.
Average sales in:
Cash-$11
Discover-$19
Master Card-$23
Visa-$26
AMEX-$31
Unlike most folks on flyertalk, most people cannot control themselves with plastic. Dave gives horrible advice for most flyertalk junkies, but I think it is good advice for the masses.

Exactly. I don't think it's horrible, we are just not the intended audience
In a way, his show is an educational tool about what not to do with financial products, student loans for example

What a horrible person... pure evil.

Referring to whom? The General?