I just read the most thought-provoking post by Mike at Living the Cheap Life. In it, he makes the case for responsible credit card use as a way to earn rewards and take advantage of "float". He says that Dave Ramsey is wrong when he says there is no such thing as responsible credit card use. Well, I left an earful for Mike in his comments!
I want to share here what I wrote:
My two cents: Yes, Dave Ramsey’s solutions can sound very “one size fits all”, when of course, there are responsible credit card users. My argument against credit card use is a societal argument. Mike, you and the other credit card users who are getting rewards back, are not going to like what I have to say. While I don’t know the exact numbers and I don’t have the research to back up this up, I believe it is common knowledge that more people struggle with credit cards then master them. Given this fundamental truth, I believe that “responsible” users help the credit card companies perpetuate the myth that consumer credit can be a good thing. I am going to arbitrarily use the 80/20 rule here and make up an analogy to go with it! If heroin pushers offered “rewards” for using their drug, 20% of people would use heroin, reap rewards and suffer no ill effects. 80% of people would use heroin and become addicted and suffer all the horrible repercussions thereof. And the heroin pushers would laugh all the way to the bank. As a society, we have decided that a population of heroin addicts is not a good thing and we have outlawed heroin. I think consumer credit is exactly the same thing. I will go even further and say that the 20% who are being “rewarded” under this system are as responsible as the pushers are for the degradation of the 80%. There is personal choice and then there is social responsibility. I truly believe that consumer credit is a societal issue that this nation needs to address. Yes, fat chance, I know, especially as I seem to be the only person in the universe to hold this opinion!
I know this probably sounds crazy to most people, but nonetheless, this is my blog and this is where I get to express my opinion! I want to go one step further and ask you to substitute the word "heroin" for the word "credit card" everytime you see this phrase: "responsible credit card use". Hmmm, "responsible heroin use". If there is such a thing, I am pretty sure that it is pretty rare.
Anyway, tell me what you think!