The Issue With Credit Cards: Clip from Podcast 68
What do we do with their multiple debts? How do we pay that off? What's the best way to pay off that debt andmaybe start out with the credit card idea? Yeah you know credit cards' anothertest spot.
I think I'm really stepping on.
Sorry I'm just, not know that.
Turn this guy off.
This guy's kind of, there's a fraction of people listening in.
Just say, I don't have any problem withthe credit card because I pay it off every month and I don't pay any interest andI get points by it and I would just tell you I've never met somebody who's super financially successful, who had said: "Hey, Chris guess what my secret was to becomingfinancially successful, those credit card points.
Man, those things put me over thetop and that was what did it for me.
" So don't lie to yourself that thosethings are the big difference maker.
The reality is only 1% of those who own creditcards pay it off every month.
There's a lot of folks who say they're doing that, they might be lying tothemselves or maybe just don't know that they're not doing I don't know.
I don't know how you would knowit but you may be it for five months but they didn't do it for two, you didn't for five but 1% are actually doing that.
The reality is when you use plastic vs cash you spend about 20% more.
So you go to the fast-food place and they say, "That will be $7.
You want fries with that?" "Sure, whatever.
" boo goes at the 5 months.
The average transaction happens at a fast-food places four dollars and like 84 cents.
The average transaction a fast food place with a credit card or plastic is like 7 bucks and something like that.
So you're seeing the big difference there because you're not having to feel the tangible departure of tender.
You're not you're not releasing anything.
You've got this plastic in your hand and when you're done swiping the plastics in hand there's no release of anything.
You'renot letting go anything so it's painless.
And so I would say if you're saving one percent of your points but spend 20% more those math geniuses go ahead and putthat together is not a wise decision just use cash.