What Your Credit Cards Are Actually Costing You - Dave Ramsey Rant

you have a lot of debt you're misbehaving with money and then you come off as prideful and arrogant about how you can handle your credit cards because you pay them off every month when 78% don't and even those that do overspend especially those of you with airline miles it's the biggest scam and freaking history Americans owe almost a trillion dollars in credit card debt 78% of you that use credit cards do not pay it off every month that means it's only 22% do when you use a credit card to purchase something on average studies have shown several pieces of research that you spend more money the average is 12 to 20 percent more that you spend now depending on the item the size of the item the process that you're using you may or may not spend more than that or less than that an example is that the average person using a credit card at a vending machine spends a hundred and seventy eight percent more meaning they get a Coke and a candy bar and a bag of chips where they were just gonna get a coke when you use a credit card it reduces the emotional friction and that's why everyone wants you to use plastic yes you do spend more when you use a credit card it's just a matter of how much more the larger the item the less the percentage but it doesn't have to be much percentage for you to spend more and those of you that are collecting airline miles all the studies tell us the reason they offer the airline miles all the studies tell us that you are the worst there's tons of research and the hilarious thing is is that you are massively in denial that you really do believe you're beating them at their game which is humorous really I mean it's like you thinking you're gonna come out playing throw the ball at the carnival a semi rigged game put the ring over the hoop put the hoop over the pylon at the carnival a semi rigged game you're not going to come out in these games they know the behaviors it's not a conspiracy theory they're just world-class marketers and spend a bazillion dollar studying your behaviors you spend more when you get airline miles because you're so freakin excited about your free trip to Europe that's not free because you're so stupid you believe all that stuff well I don't agree with Dave Ramsey on the airline miles it's just because you don't know the background and the data on this 90% of airline miles are never redeemed and of those that are redeemed you have a substandard experience with the airline which having a substandard experience with a substandard industry pretty much means it sucks I mean think about airline service other than Southwest is an oxymoron in it I mean Delta is Greek for we're not really taking you there we just said we were its a substandard experience to start with and then you get the opportunity to fly through three extra connections to use your free miles that was brought to you by overspending on your credit card and somehow you and your little brain have figured out that that makes sense this is stupid it's stupid even when you're on a cash basis with a debit card like I use I don't own a credit card I haven't in decades but even if you're using a cash basis like a debit card you do not feel the pain back in the day when the dinosaurs roamed the earth and we put gasoline in our car we used to have to leave the car walk into the store and hand the person in the store money with presidents faces on it when gas prices went up we squalled and threw a fit they go from $2 or $3 to $5 we had a fit people were acting like the entire world was in meltdown because when they paid for their gas with presidents faces they knew that gas prices had gone up here's what's interesting when gas prices go up now you and me we pay at the pump don't we I pay with a debit card some of you pay with a credit card and when gas prices go up you don't think much about it because it's kind of like monopoly money it's a digit you're not even pulling the receipt off the thing I know because when I pull up there your stupid receipt still hang in there so you have no idea what's your last tank of gas cost you can't tell me the reason you can't tell me is it created no pain for you inside your brain pain is associated with memory if you create a pain around something you will have a memory of it when you know when you buy something that you saved up for and you pay cash for it you can tell me to the penny what you paid for it because it registers in your psyche the research shows the more money you make the more credit card debt you have because the sloppier you get and the more you buy into these stupid rationalizations where you are not experiencing any emotional friction MIT did a study that showed that the pain centers of the brain are activated when you release cash that is yours to purchase something when you spend cash it activates the pain centers of the brain when you buy the exact same item with the exact same amount of money with a credit card nothing happens in the brain no pain center active okay activation no brain but no pain center activation which means you're simply not registering the spending there's no emotional friction there's no intellectual friction nothing is acknowledged and you spend more you really do and to argue with that is ludicrous because that means you have pride about your level of discipline which is absolute horse crap I teach discipline for a living it's what I do I have taught this for 30 years and I can fall in this trap of spending more because I'm using plastic and we're on a Disney cruise and your room key buys everything took the grandbabies on the Disney Cruise right and before I know it we're just buying Mickey this and Mickey that and I get the bill at the end of cruise and I'm going well we got Mickey Mouse unbelievable man there was no acknowledgment that this money was leaving by Papa Dave or by the precious overspending grandbabies I'll do it again it's wonderful I can afford it but when you're broke and you rationalize you have no net worth your net worth is $4 and you have no income or limited income you have a lot of debt you're misbehaving with money and then you come off as pride fall in arrogant about how you can handle your credit cards because you pay them off every month when 78% don't and even those that do overspend especially those of you with airline miles it's the biggest scam and freaking history it's the credit it's the cigarette of the financial world it used to be cool and people are gonna acknowledge that it kills you they're gonna quit doing it if we have a proven plan to teach you how to get out of debt go to Dave Ramsey comm /fp you learn about Financial Peace University start your journey to being debt-free no more credit cards no more debt it's time to change what you're doing isn't working

Channel: The Ramsey Show Highlights

Views: 485,895

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, What Your Credit Cards Are Actually Costing You - Dave Ramsey Rant, dave ramsey show, dave ramsey rant, money, dave ramsey live, debt, what your credit cards are actually costing you, credit cards, credit score, the points guy, personal finance, credit card rewards, credit, credit card points, points

Id: MFkBoXhl5SU

Length: 9min 39sec (579 seconds)

Published: Mon Aug 19 2019