The potential profit of keeping the money in your pocket for up to 30 days will be voided the first time you either forget a payment, or the CCCo loses your payment, or they just decide to F with you and crap. They're shady ass companies that make up their own rules and should be avoided. It's as simple as that. They can bump your minimum payment whenever they choose, jack your rate to 29% for no legitimate reason, and so on. If you've never had this garbage happen to you, you're lucky...so far.Originally Posted by BennyLaRue
Just caught this post too. While the miles are a nice side benefit, that's not the main reason to use credit to buy everyday items. By doing so, you're delaying your payments by up to 30 days. DUCY that is a good thing?A few folks mentioned that using CCards is better, because of the rewards and such. You will never, never read about some dude that claims his getting rich was somehow due to frequent flyer miles.
As for the "spending more" on credit cards comment, if you're not mentally strong enough to have self-control, you'll probably never be rich anyway.
What does Crazy Dave Ramsey suggest you do with the 6-months of cushion, ie. how is it to be invested?
The mental strength thing is probably true. And 100% of people you ask will say that they're strong enough to show some backbone. The fact is that most don't. The fact is also that most people won't ever be rich either. It takes discipline.
The 6 month is an emergency fund. It's just going to sit in some low-interest money-market type account, and will be immediately available in case you lose your job, get hurt, wreck your car, decide to have a baby, or whatever. Odds are some day you will need it. Life happens. Be ready for it. Having it allows you to be self-insured against the majority of hiccups that life throws at you.
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