Statistics show you spend more on average using a CC, I think the last number I saw was 14% more. Of course since this is DVC related, going on vacation is not an entitlement.
I also think a lot of his fans are learning. We had to learn too. Lol. We found him after we figured a lot of his message on our own, and it was great to hear someone else say it. He really is a great voice of reason overall for this country. But that is just my take on it.
There is a member of this board that made the statement they financed EVERYTHING at EVERY opportunity and wanted to argue this was a smart plan. They later came back and had made a complete 180 and were on the Dave Ramsey Plan. If you don't understand what the gold standard is you won't know how close or far off you are. Part of the problem is many want to argue about what if you're close but not 100% then use that as an excuse to make bad choices at every turn. If people made great choices, were set for college, retirement, etc and financed a timeshare, who cares. But that's not where people are looking to finance a timeshare, usually they're living month to month. They don't ask how much, they ask how much a month (code for I can't afford it). Will some of them survive the Russian roulette? yes but some won't. My suggestion is to buy things you can afford (pay cash) and avoid the risk and stress. We've seen many examples on this board of bad outcomes the could have been avoided including financing that ended badly or non marriage partnerships.
Interesting, I never knew the number - at least in a broad market sense, but I did run a retail place for years, and any way I calculated that number internally(which did require some assumptions), I came up with the same conclusion: The profit from added sales far exceeded the credit card transaction fees.
This is true, but only if you are using the debt on an income earning asset, where the earnings are greater than the interest expense....DVC may be one of those items for a family that travels regularly to WDW and pays for deluxe accomodations....DVC is not one of those items for a family who is looking to use DVC as a way to upgrade their vacations.
If we're going to get into this here, I think it's important to spell out that index funds are relatively safe over the long term (atleast 10 years). They do have heavy volatility, so if you may take some or all of the money out in less than 10 years time, index funds can be every bit as dangerous as investing in a single stock.
I think that's the problem here. Usually when this comes up people want to use the exception to prove a rule that doesn't apply. Most people who do no interest for 6 months end up paying interest. Most people who plan to use a CC for emergencies only or pay it off every month don't do so. But the risk is variable. I use a CC and pay it off every month and have for over 30 years thus with no debt and that history my risk is far less, esp since I have the funds to cover things in savings if needed. But there is some risk regardless. Effectively if you have debt and buy something you don't truly need, you're financing the purchase by not applying that amount to the debt, it's the same effect math wise. My personal goal though is that people understand the risk, understand the best practices then make their own decision. But the fact they made a given decision and they feel it was a good one doesn't automatically make it so. If we don't talk about a standard, many will never know what it is.
Exactly my point, understand the situation and risk and be a grown up.
. Over 10 years? We've MADE about $400 per year. Never paid a dime of interest. We still don't know why Cap1 has not just kicked us out . Really - they have GIVEN us about $4000 .Probably off topic, as it has to do with CC debt?
There is a way to WIN with this. In our case, a no-fee Cap1 card. 1.5% cash back. We put EVERYTHING on it (food, medical, etc). Chase has a similar offering.
We pay this off every month
I think the comment is if you are paying long term vs short term capital gains on selling your assets. So if financing for a short period avoids having to sell an asset which would trigger a short term capital gains tax that would be quite the hit depending on your tax bracket. Though bridging the cost through a short term finance you could sell that asset once in the long term range (or wait until you have net losses to offset the gain) and come out ahead with financing. But as everyone says the analysis really shouldn't be about a single aspect of your finances but should be the entire financial picture.
Probably off topic, as it has to do with CC debt?
There is a way to WIN with this. In our case, a no-fee Cap1 card. 1.5% cash back. We put EVERYTHING on it (food, medical, etc). Chase has a similar offering.
We pay this off every month
But selling an asset does have an implication on WHEN you pay them. Might want to defer paying them.
