I'm a Money Nerd and I Don't Use Credit Cards
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- čas přidán 5. 09. 2024
- I'm a millennial and I don't use credit cards. That's right, I don't get any of those sweet rewards that everyone my age is talking about.
Several people have asked me why. I mean, I am very in tune with Bailey's and my finances. I don't pay anything late. Why not use a credit card and get those points so I can fly somewhere for free?
The short answer is because I'm a financial coach. Credit cards are a product and are designed to make money off people who can't pay it off every month. For that reason, America has an incredible amount of credit card debt and it just keeps rising.
As a financial coach, I want to show people that it's possible for them to live without a credit card. I don't judge people for using credit cards! I just can't tell people not to use them while using credit cards myself.
I want to be the support for those who need to cut up the card. I want people to think "If Caleb can do it, I can do it too!"
The fact of the matter is, people make excuses for why they keep their credit cards. Though they have great benefits, those aren't exclusive to credit cards.
For example, most people think they need to have credit to buy a house. In reality, there are companies out there that will do "manual underwriting" and can get you a home with no credit at all! We used Churchill Mortgage and had a great experience.
www.churchillm...
Also, there are debit cards that offer rewards as well. Discover.com currently has a debit card that offers 1% back on every purchase!
I get it, credit cards can be incredibly polarizing. What I'm trying to do is not judge people for using them, but merely trying to encourage those who need to get rid of them.
If you have credit card debt, I'm here for you.
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My partner and I bought house without having a credit card. Everyone was saying to have one, but there was not use.
Now debit cards are as good as credit cards when and it comes rewards like cash back
I just don’t want to buy something I don’t have money for. I am a millennial and I still prefer the old way, save for something you want to buy
That's great to hear from someone with personal experience! Totally agree.
I spent seven years in finance and I am totally against using credit cards and debt in general.
Glad to hear someone else who thinks similarly! Also, I guess we're in similar fields given I work full time as an engineer.
It’s not debt if you pay it off each month
That means you're not good with finances then. I have 4 credit cards and zero balances on all of them and a high credit score. I get so much free money and rewards by using them responsibly
I make between 8k-10k every year in credit cards, as long as you’re disciplined and used them as debit cards you shouldn’t have a problem. Number 1 mistake people make is maxing them out 🤦🏻♂️ which is silly.
I don't disagree, maxing out is the worst. Wait, you MAKE between $8k - $10k a year in credit cards? How much are you spending??
@@CalebBaleFinance well I have the venture X, the sapphire reserve and the Amex gold, so when you mix the venture x with the savor and redeemed them for miles you pretty much get 3x more miles and travel for free and hotels are also free if you know how to use them same goes with the sapphire and Amex they are amazing for portal travels, and I do have a business and a lot of expenses so i pretty much use between 15k-25k every month so that’s why I get so much out of them.
@@CalebBaleFinance Assuming a good credit card that gives about 3% of most spending, i'd estimate about 267k-334k per year.. I know someone with similar spending and makes about that much if not more in rewards every year.
Im 19, a student in the UK. I got a student credit card from HSBC purely to put £20 on each month and let them direct debit it right out might account. Simply to build positive credit history as students dont have much information about themselves. The moment I start seeing the credit card as a way to spend money i dont have and pay it off later, is the day I’ve failed
Totally get it. A lot of people use them for that reason. Just clearly not for us!
So lets be honest. Credit cards are benefiting people who actually earn a lot, not for regular people, who dont and then go into debt. I will be using my debit card until i die, i will spend what i have and had nothing to worry about. 🙏🏻
Finally someone who doesn’t want to use credit card who totally gets why us responsible users want to, and doesn’t shame us.
As someone who has had their card number stolen (God knows how), I do like the security of credit cards more. Sure I can get the back with debit cards, but it will take longer and in the meanwhile the money from my checking is lost. Using it responsibly builds my score (over 800), and also I get about $300 in rewards a year.
Hey Justin! Sorry for the slow response. We just got back from vacation where we had almost no connection! Glad I could convey my opinions on the matter without you and other viewers feeling judged for the way you handle your money. Thanks so much for dropping by and sharing your opinion!
@@CalebBaleFinance thank you!
I agree with the security, its the same on both cards, but getting refunded on my credit card was much faster and the money didnt leave my checking account, which was nice, but also a little stressful cuz once i got a $1100 facebook fraud txn charged to my card, and the bank told me i will have to pay the statement amount if it isnt resolved in time :).. luckily it was.
I have a single credit card and I have been struggling to decide if I want to just get rid of it or decide to add more. I have never had a carrying balance month to month for roughly 10 years but living the credit free life makes things less risky.
I’m the same way. I go back and forth on what to do all the time. I have never paid a penny of interest my entire life but I love the peace of paying for now and the future instead of always paying for the past. But as someone who calculates the most efficient use of things constantly it’s hard to say no to credit cards. I’m glad to know I’m not the only one struggling to make that decision even though I’ve never gotten myself into trouble with money. I hope you figure out what gives you peace with it soon!
Hey to both of you! Sorry for the delayed response. But if it makes you feel better, I try to find the most efficient way of financially handling our money. And I can say without a doubt, my wife and I live financially very peacefully because we don't pay for last month's expenses with this month's money. Living with only debit cards is awesome.
@@madison_kr Peace is an important factor, which is why i'm planning to get rid of 2 of my cards and keep 2 (which has specific purposes based on my monthly expenses that dont change like groceries)
In Islam there's a concept called Riba which is haram (forbidden) and interest falls into it. So I was thinking I need to get rid of my credit card, but I wasn't sure how I would be able to keep my credit for future rent agreements, or if it would be secure to use my debit card.
Thanks to your video I now have much more confidence and inn shaa allah I will get rid of my card soon.
Oh that's very interesting, I had no idea. Happy to help!
I do use credit cards. Unfortunately before I became financially educated I ran up my credit card debt. Now I am paying it off. That was my fault though. I was completely irresponsible, stupid and normal! I plan on getting a cash back card eventually. I do understand the point of getting rid of them though. Most people's finances are train wrecks (just like mine used to be). And a credit card for a gallon of chocolate milk?! SIGN ME UP! NO I DONT CARE WHAT THE INTEREST RATE IS! JUST GIVE ME THE CHOCOLATE MILK!
I can honestly understand why people use credit cards if they pay them off every month. That's exactly right, it seems that it is normal to have credit card debt nowadays. Unfortunately, most people don't understand the consequences as you do. Way to work on paying it off!
Hey, you know how much I like chocolate milk, it really would be the biggest temptation for getting a credit card I could have.
40andBroke, on behalf of the credit card companies, I would like to thank you for helping these companies get rich! 🤑
I’m with you, just give me the Chocolate Milk, nowadays sometimes you go into a store, make a purchase and they want your ph #, when I’m asked that l decline
I do like credit cards, but I get why you just cut your card. It makes sense. Credit cards are dangerous, but obviously, it is possible to use them responsibly. Not gonna lie, that did shock me when you cut the card :'D
Yes sir, I don’t deny they can be used responsibly but I’m glad you follow my reasoning. lol yeah going for that shock factor!
Love your channel! Keep it up! I’m sure in the future your channel will be huge! Fun to watch and great advice 🎉
Thanks so much, Jesse! I really do appreciate the support and encouragement!
I canceled my credit card because the interest rate went from 20% to 34%, l had this credit card for years and l believe for the most part l was responsible, l had a revolving charge on it each month because of having sling tv, but paid it off each month but that 34% hike in interest WOW!!!! I just don’t want to chance something going wrong and not being able to pay, I’ve had debt problems many, many years ago, never want to be in debt again, l using my debit card or paying cash and the payment is DONE!!!!
I agree. Keep going with what ur doing pretty good channel. Liked.
Thanks so much! I really appreciate it!
I got a credit card to pay for things when I travel and get those txn fees back as cashback, also I have one for grocery shopping cuz I literally don't shop anywhere else for groceries, so it makes sense to get 6.5% back which I use to go to cinemas or whatever with my partner.
I have two more credit cards which i barely use anymore and planning to cancel them to simply my budget, but again, i never leave a balance and mostly pay it of even before the statement date.
Glad to hear you never leave a balance on your cards cause that takes some discipline. I just find it so peaceful not having credit cards at all! It simplifies our finances so much
I do use a credit card, mostly for the points but HOW IS THERE A DEBIT CARD WITH POINTS AND I DIDNT KNOW ABOUT IT
I know, I didn't realize it had points until I looked at it the other day! We have that debit card but only use that account for money that we give so we never use the card. I might have to shift what is our primary checking account though so we can take advantage of the 1% back.
Caleb, how can I set up a call with you? I am just beginning my journey of becoming debt free. Love the idea of having a coach. Thanks!
@@TylerKirkham0 Hey Tyler! I’d be so excited to help you through your debt-free journey! You can book right here: tidycal.com/calebbale. And let me know if you have any questions about how coaching works and I’d be more than happy to answer them.
Just stopped using them this month. Always paid it off every month, but it was so easy to overspend and end up digging into the savings account to pay it off. With debit being the only option now, it is impossible to accidentally overspend and then try to scratch the money together by the due date.
Heck yeah, nicely done Caleb! I know it's tough quitting but if you know you were overspending with them, props to you for cutting them out. Keep it up!
No-judgement question(s) of the day: Do you use credit cards? 💳 Would you ever consider cutting them up if you do? ✂️✂️
Would you apply for a credit card if you could get a free gallon of chocolate milk? 🍫🥛
I think your position is reasonable for a credit coach.... but you must acknowledge that's not necessarily a rational choice, right? The average American pays over $900 a year in higher costs to cover swipe fees whether they use a credit card or not. The only choice, really, is whether you just pay that and eat it, or whether you get something out of it. Natually, if someone can't use cards respnsibly, they shouldn't use tham at all. Just like an alcoholic should never have a drink. But if you CAN use them responsibly, then not using them is leaving money on the table.... literally.
I mean, if you are talking mathematically, my wife and I could absolutely game the system by using credit cards. But I'm not here making videos for people who are good with money. I'm here to help the people who feel helpless and hopeless when it comes to their money. And most of the the time, that means people who have a lot of debt including credit card debt. So that's why I go that direction with the content. The only thing that may not be considered in your comment is the psychological impact of using credit cards that actually tends to increase spending. It's harder to quantify though. On the surface though, mathematically, it absolutely makes sense to get as much back out of transactions as possible.
@@CalebBaleFinance Thanks for the reply. Two things: On "spending more with credit cards." That comes down to mindset. If someone thinks of a card's limit as "available money," then yeah, they'll probably spend more and shouldn't use a card. But people who use cards successfully don't do that. They think of cards as basically a debit card, and don't buy what they cannot immediately pay off. And for me, I spend more mindfully, because I know I am going to have to pay off that balance at the end fo the week (or cycle). Secondly, I have had people tell me I am "deluded" and "spreading dangerous misinformation." Even had one dude say I was working for a CC issuer. I appreciate that you ackwowledge that's not true, and I appreciate that you are trying benefit your primary audience. Cheers!
My question is what does it take to get to the level where you never have to use credit cards.In my own experience I've made money from investing and one or two contract jobs i've done in the past and when the banks called me to confirm the source of the income which taxes where paid for; in summary they were like its either I accept credit cards or I get nothing. they said we want to give you credit cards from this or that facilitator and when i said no they kept mute and as soon as I left the bank the money was out of my checking account and the atm card they gave to me canished into thin air literally, and the banks keep doing this.or are the banks just putting all of your money in perpetual annuities to pay principal first and a steady income for life? by the way I never accepted those credit cards.Most people I talk to lie about their finances cause I know a thing or two about how banks works.
Hey John! Thanks for the question. Can you elaborate a bit on the situation? Why does the bank need to confirm your source of income? In our situation, we simply live below our means, and save heavily for everything. Then we can pay cash for anything we need (apart from our home). We've done this for years and it's worked well. My goal is for people to just realize that credit cards don't have to be a necessity. It's just our culture keeps telling people it is and that creates a lot of issues for people financially.
@@CalebBaleFinance ok ,so to elaborate more,do you invest or have any side business other than your 9-5 job.
@@johnspeed7618 We invest in 401(k)s and IRAs and have very small side businesses
I once did affiliate marketing and drop shipping and my entire profit deposit was sort off seized without permission.I recently saw somewhere online that they call it 10 year haircuts on deposits.8 years later and nothing.but they did offer me credit cards on those income streams which I refused, because i wanted to be able to spend money that belonged to me.
So those side businesses you do, when you make your profit does the money go straight to your bank account where you have immediate access to it or you put it an e-wallet. and spend from there.
Im about to adopt this same strategy. Im gonna use my assets to borrow money
I suppose that's one way of looking at it. However, ultimately my goal is to help people totally stop borrowing money.
I always avoid credit cards at all costs. To me, it's a real slap in the face and I don't want to go into CC Debt.
Love it!
You won't go into credit card debt if you use it responsibly
You only go into credit card debt if YOU choose to. Just be aware that you still pay for credit cards, whether or not you use them.
Its the biggest money scam in the world
Amen to that
Now I understand what credit means
Credit = Utang.
Bingo!
I use credit cards for the cash back, and I only spend what I know I can pay off in the month. Credit card companies hate me and I love it!!
Yeah, you're one of the ones the banks don't like 😂😂😂
You are here advertising on their behalf. They love you to death. And one day if troubles arise you will be more inclined to use a card and incur interest. And they know that too. So you advertise for them and like 90% of people, you too may one day go over. They Love you.
I use credit cards and never pay interest so I can redo the rewards and protection
I totally get that, however a huge number of people don't do that, which is why I'm trying to teach people how to live without credit cards.
Real good to refer to scripture in Romans
I use 3 credit cards per day I try to everyday.
Why’s that?
@@CalebBaleFinance
I like my 840 credit score, so I try to put $300-400 on each credit per month. I have 8 credit cards at 205k available balance.
I don’t use money for nothing but to pay my credit card off each month.
Some people hate credit card and credit score, I ain’t that person. What works in your household is your business.
@@markJones38133 Fair enough, Mark. To each their own.
I’m the complete opposite. I only use credit cards. My debit card isn’t even in my wallet. I set a weekly spend budget and only charge that to my card. I have way over 3-6 months of expenses set aside and zero cc debt and have never carried a balance and I save money aggressively. Some people can handle them and some just can’t.
I certainly agree, some can handle them and some can't. You clearly are able to. But I find most people have an overly optimistic opinion of their ability to live below their means so I find it easier to encourage totally against the use of credit cards for that very reason.
I don't see any video man
I must have missed putting one somewhere. Did I say in the video there was one to check out?
If you love debts then you are a credit card holder!
What if the credit card holder died already and unable to pay the credit card debt 😂😂😂
It's definitely going to bite a majority of people who use them! That's clear from the statistics.