Episode #11: I Was Robbed!

So, as you know from my prior posts, I am a HUGE fan of using credit cards.  I truly believe that if you use them correctly, they are a  safer, easier, and smarter way to shop.  Now, a funny thing happened to me yesterday that validated at least one of my points about credit cards.  What happened you ask?  Well, if I told you there would be no reason to watch the video, right?

More and more personal finance bloggers and experts are starting to come aboard the credit card bandwagon.  One of the big reasons is that it is so easy to monitor your transactions now because of sites like Mint.com.  Now that you no longer have to guess about what you spent your money on for the month, or carry every receipt you’ve ever received in your wallet, using cards are – in my opinion – essential.

[youtube]http://www.youtube.com/watch?v=lsSTjjsyPhs[/youtube]

Here are some links to get you pointed in the right direction with cards:

Okay, so your task for today is to call your credit card company, negotiate down your interest rate, and start using them the right way!  Believe me, as long as you use them correctly, there is no smarter way to manage your money.

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3 Comments

  • Dawn

    Reply Reply November 24, 2009

    Sorry, but this one is close to my heart and I have to completely disagree. Use a DEBIT card! You are using your own money out of your own bank account so you don't have to pay monthly fees or interest fees and YOU DON'T HAVE TO DEAL WITH CREDIT CARD COMPANIES (A.K.A. THE DEVIL) WHO ARE ONLY OUT TO GET MORE AND MORE MONEY FROM YOU, NOT HELP YOU! Banks WILL reimburse for fraudulent charges on your debit card. If they didn't, they wouldn't have customers.As Dave Ramsey (daveramsey.com) says "live your wage!" If you can't afford to buy it (with money you already have) then you can't have it. Stay away from credit cards!I strongly urge you and everyone to listen to the Dave Ramsey's radio show and/or podcast and read his book, "Total Money Makeover." No, I don't get paid to say this, I just believe in it because I, and many others, have gotten out of debt, cut up ALL credit cards (thanks be to God!) and have an ever growing savings account on quite a small income thanks to Dave and his simple, common sense ways. It's good stuff, trust me! : )

  • Dawn

    Reply Reply November 24, 2009

    Sorry, but this one is close to my heart and I have to completely disagree. Use a DEBIT card! You are using your own money out of your own bank account so you don't have to pay monthly fees or interest fees and YOU DON'T HAVE TO DEAL WITH CREDIT CARD COMPANIES (A.K.A. THE DEVIL) WHO ARE ONLY OUT TO GET MORE AND MORE MONEY FROM YOU, NOT HELP YOU! Banks WILL reimburse for fraudulent charges on your debit card. If they didn't, they wouldn't have customers.As Dave Ramsey (daveramsey.com) says "live your wage!" If you can't afford to buy it (with money you already have) then you can't have it. Stay away from credit cards!I strongly urge you and everyone to listen to the Dave Ramsey's radio show and/or podcast and read his book, "Total Money Makeover." No, I don't get paid to say this, I just believe in it because I, and many others, have gotten out of debt, cut up ALL credit cards (thanks be to God!) and have an ever growing savings account on quite a small income thanks to Dave and his simple, common sense ways. It's good stuff, trust me! : )

  • Dean Soto

    Reply Reply November 24, 2009

    Hi Dawn! Thanks for the great comment! I love Dave Ramsey, and I think he has some great stuff. However, had I been using a debit card instead of a credit card, I would have been out $500. Banks are notorious for not reimbursing for security breaches that they should be protecting against. A simple search on Google shows that you are not always guaranteed to get your money back if you use a debit card. The only thing that you have going for you is that there is are 2 limits with a card.1. Your account balance.2. There is usually a 3k-5k limit per day on charges. That's it! I say again, banks do NOT have to reimburse your money any more than they would have to if someone stole cash from your pocket that you just withdrew.In regards to monthly fees and interest fees. As long as you pay the balance every month, you don't have to pay any interest fees. I've been using a card for a year and haven't had one cent of interest charged to my account. Not only that, I am buying all of my friends and family's Christmas presents with the points I earned using cards. I strongly agree that you should live your wage. DO NOT use credit cards to buy stuff that you couldn't pay for with cash. Pay the balance every month, and monitor your spending with something like Mint.comI agree with Dawn though. If you can't manage your cards using Mint.Com or Quicken Online, and don't have the discipline to watch your spending, don't use a card. If that's you, definitely check out David Ramsey's site! It's got some great stuff, and it does work!

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