Comments by "SmallSpoonBrigade" (@SmallSpoonBrigade) on "THIS IS Why I NEVER Use A Debit Card! | Minority Mindset" video.

But, you get purchase protection via debit cards as well. Granted, it's mostly fraud related, but just a couple days ago I had some money clawed back on my behalf by my bank because a purchase I made was broken on arrival and the company couldn't get it working and refused to refund my money. The process was no harder than it would have been with a credit card.
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@KTWEBS No, gold is supposed to be a savings against the apocalypse. Stocks and inflation protected bonds are the only savnigs that protects against inflation. Bonds like I-Bonds and TIPS that have their payout connected to inflation will somewhat guard against inflation. But, a balanced portfolio of stocks will protect against inflation in a way that virtually no other form of investment will. Everything those companies do to generate shareholder equity will take inflation into consideration and over the long term, stocks beat inflation by a number of percentage points.
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If you're buying things you wouldn't otherwise buy or paying more than you'd otherwise pay, then you're not disciplined. That's the real problem with credit cards, you might be paying them off every month and racking up those points, but if you're spending more money than you would have spent, which most people do, then you've lost out. Some people do legitimately keep their expenditures to just what they budgeted, but most people don't, hence why those points programs exist, they wouldn't be offering it if they didn't routinely receive more money than not having those programs at all. Or, those programs would have been cut years ago.
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Yes and that's the problem. People who can do that are better off using their self-control in other areas of their lives than ensuring that they don't overspend because of plastic. This is a bit like paying off your debts starting with the highest rate and working on them until you get to the lowest rate and pay it off. On paper it seems smart. In practice, people rarely have the self-discipline needed to finish it. This is the same thing, it's unnecessary use of self-discipline that could be used for other purposes that have more than a 1-2% payoff.
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@Austin Duke That's exactly the thing, if you don't buy extra stuff or pay more than you would normally. The problem is that people don't normally show such restraint. There are people out there that do, but even in those cases, that extra cash back is costing you some added effort in exercising discipline that could be used in other areas of your life. In other words, there is no free lunch here. That extra money is coming from somewhere and people who use these cards are exchanging it for discipline they could be using to improve their lives in other areas.
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@croatiandirter Nope. Cashback is only good if it's actually spending that you have to do and you don't wind up spending more for it. In practice, that's usually not the case, if it was, then credit card companies wouldn't be offering it as a perk as it would cut into their profits by too much. Even in the best case scenario, that extra little bit of cash cost you the effort and selfcontrol needed to not expand your spending to avoid paying extra. That's effort that could be put into improving your life or increasing your bottom line.
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@swedeej114 You still wouldn't want to as then you'd have to comb through the records to figure out what your business spending was and what's going to be deductible. If your business spending is the only spending on that card, then there's a lot less effort that has to go into figuring out which expenditures are legitimate deductions.
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dachicagoan That's not why he's against credit cards. I'm not massively in debt, I'm going to be able to pay off my student loans within a year or two if I watch my money and make that my priority. He's against credit cards, even if you pay them off every month. He's against them because they promote overspending and what little rewards you get from using them is pretty much always offset by additional spending if you're not extremely careful. What's more, even if you are careful, there are just better uses of your selfcontrol than ensuring that the plastic doesn't induce you to overspend.
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