I guess we’re the odds ones out
We followed the generic Dave Ramsey path. We have not had a credit card or any type of debt in over 11 years. We’ve been in the plan for 18 years.
We have multiple debit cards tied to multiple accounts to cover internet, in-person at point of sale, and large purchases with different limits set according to account to limit any liability exposure.
Our main account’s debit card is never used.
The terms & conditions and liabilities on our debit cards are identical to what our CCs were previously (except no points/miles).
The negatives -
1 - We don’t earn cash back on purchases
As a result of following DR, we mostly are using cash for purchase anyway. Let’s say there’s $10k-$30k that could have been placed on a CC - that means it costs us a couple hundred a year
2 - we don’t earn points/airline miles
We are buying 1st class tickets now anyway - we went through process and sacrificed so we later could live like like no one else.
3 - insurance - we can’t get quotes over internet without a credit score
With a paid off home, cars and savings - we get complete package coverage quoted including umbrella liability, etc. it usually requires more than a standard internet form anyway
4-rental cars - some require a CC
Multiple don’t. We know the ones that do & don't
5-travel (airline, hotel & international) - Holds on amounts .
We keep sufficient funding in accounts to not have worries and liability protection is equal to CC. We do have more cash availability in accounts so holds are irrelevant, and multiple accounts with daily limits to not have concern when hiccups occur. Ultimately, that means we keep some cash - but in this DR plan, you’re supposed to have 3-6 months of expenses anyway.
Positives
1- life is simpler with less statements to be concerned about.
2- we (wife and I) are on same page, and by using cash or the designated debit cards with their associate account - there have been no money disagreements or arguments in 18 years. The impulse buying and/or deals are predetermined with either cash or designated debit card and account
This is priceless to us.
3-it allows us to help others who are out of control with spending by using CC and other debts by example.
I’m not saying CCs are wrong or bad. I acknowledge that ultimately we’re trading a couple hundred $ per year for financial / marital peace as we each spend only our own cash and designed accounts debit cards. We have not had a “What was that charge ? Or why did you get that?” in 25 years. This also allows us to be examples (and not hypocritical) when helping others out of their financial hole who struggle with spending only to budgeted amounts.
I am not saying others, who feel they’re in control and are wisely managing their budgets for years have to change.
