Welcome back to Better Wealth Reacts. My name is Caleb Williams. In today's blog post, I'm going to be reacting to two videos: one video is very pro never use a debit card and recommends using credit cards for all your purchases for credit protection and building credit, and the other video is Dave Ramsey in 2023 explaining why you'd be an idiot if you use a credit card and why you should use debit cards instead.
Benefits of Using Credit Cards:
- Offers the safest form of payment.
- Credit cards like Visa, Mastercard, and American Express provide zero liability in case of fraud.
- Helps in building credit scores when payments are made on time.
- Provides purchase protection for online shopping and travel.
- Earn rewards and points that can be redeemed for various benefits.
Cons of Using Debit Cards:
- Directly exposes your bank account to potential fraud.
- Can be liable for certain amounts until the issue is resolved.
- May take longer to resolve fraud cases and get your money back.
- Doesn't help in building credit scores.
For Parents:
- Consider getting your children a credit card to help them build credit early on.
- Set a limit and monitor spending to ensure responsible use.
Why Dave Ramsey Recommends Debit Cards:
- Zero liability protection similar to credit cards.
- Prevent unnecessary spending and debt by spending what you have.
- Automated systems in place to stop unusual activity on your account.
In Conclusion:
While there are benefits to both debit and credit cards, it's crucial to understand your financial habits and choose a method that aligns with responsible financial behavior. Whether you agree with the pro-credit card stance or side with Dave Ramsey, knowing how to utilize financial tools to your advantage is key to maintaining financial health.