Quote:
Originally Posted by zx10guy
And it's not just this forum. It's the general public. Even some of the famous/celebrity type financial planners all talk about getting your house paid off. And I couldn't disagree more. Especially with a low fixed rate.
This is also the age old argument about cutting up credit cards and paying cash for everything. Like credit cards have some mystical powers over someone which forces them to buy things on credit which they can't pay off. I try to buy almost everything on my credit cards because either they give me cash back, extends warranties on the electronics I buy through it (which I have gotten the credit card company to cover repairs past the standard manufacturer's warranty), provides accidental damage or loss/theft coverage (which I have used and successfully got paid out on), or discounts on products purchased (ie retail credit cards). If I paid cash on everything, I wouldn't get any of the above perks and if you look at it from a dollars stand point, am actually losing money by paying cash.
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This is so, so right! I just wish that there were more people that had this kind of mentality as well as being able to use and understand credit (of all kinds). I have tried to get some of my friends to get cards for retail places they go to on a regular basis or gas stations that they shop at almost exclusively but haven't been able to get anywhere with them. They will then, of course, bitch about the fact that I get all these great savings at all the places we shop at, as well as am able to fly free places through airline miles that I don't get only when I'm in the air. Granted, some of these people may be better off paying in cash for everything as I could imagine they would be the ones that would "forget" to pay the bill or just pay the minimum because "that's all I had to pay" since they really don't understand credit as a whole.
Shit, I use a business card that gets me points for some of the smaller purchases that I need to make for customers so that I can get the points for it and when I tell people about things like that they are just baffled since I have a line with most of my distributors.