Think credit cards are dangerous? Think again. Some personal finance gurus act like you’re holding a ticking time bomb, but the truth is—credit cards don’t get people into debt, bad decisions do. In this episode of The Get Out of Debt Guy Podcast, I’ll break down the real way to win the credit card game, why a 30-year mortgage might actually be the smartest move, and how store credit cards and “0% interest” deals are designed to sucker you into debt. Plus, I’ll tell you how to grab my FREE Ultimate Debt Repayment Plan to help you take control of your finances. Read more in my latest post: Understanding Types of Debt: Credit Cards, Loans, and Mortgages Explained.
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Transcript
[0:00] They say knowledge is power, but when it comes to debt, the real power is knowing how to play the game without getting played.
[0:10] Hey, I just finished writing a new post. Not the most clever title, but it’s called Understanding Types of Debt, Credit Cards, Loans, and Mortgages Explained. And while I was working on it, I realized there’s a whole other conversation we need to have. Because when it comes to debt, some of the advice out there is just plain bad.
[0:34] Personal finance gurus love telling people, just use a debit card Never get a credit card, Like rural toddlers who can’t be trusted with sharp objects Look, if you can own a set of kitchen knives and not go around stabbing people You can handle a credit card responsibly, And when you do, you can make out like a bandit. I haven’t paid for a first-class airline ticket or a luxury hotel stay in years. It’s not because I’m rich. It’s because I know how to use credit cards the right way and play the game. So today I’m going to share the extra insights I didn’t get to include in my latest blog post. And stick around because I’m also going to tell you how to grab my free ultimate debt repayment plan. Look for the link, Steve’s Ultimate Debt Repayment Plan, in that post. You’ll find it in the blog post, and I’ll drop a link in the description below.
[1:33] You know, they tell you to fear credit cards, but here’s the truth. They only hurt you if you use them wrong.
[1:41] The key is simple. Use a credit card for everything. Get the points, the perks, and the fraud protection. You get more protection with a credit card than a debit card. Pay the credit card off in full every month. No exceptions. In fact, if you don’t trust yourself to pay it off in full every month, pay it off in full weekly.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
[2:02] Pay before the statement closing date so your credit report shows a low balance and your score skyrockets. You know, the second you even think about putting something on your card that you can’t pay off, stop. Don’t do that. Credit cards don’t put people in debt. People put themselves in debt by using credit cards badly.
[2:27] Now let’s talk about the biggest mortgage myth out there. Some people swear by 15-year mortgages because they want to pay less in interest. I mean, sure, I get it. You save on interest, but what happens if life throws you a curveball? Nobody has an accident or unexpected event on purpose. I actually think a 30-year mortgage is the smarter play for most people. Why? Because a lower minimum payment gives you options. I love options. If times get tough, like job loss, unexpected expenses, a medical crisis, you have a fallback. But here’s the best part. Nothing stops you from making extra payments and paying it off like a 15-year loan.
[3:19] You want to get ahead? Pay extra when you can. Need breathing room? With a 30-year mortgage and a minimum payment, you have it. That little extra interest you pay? Look, think of it as cheap insurance for flexibility.
[3:35] Now let’s talk about debt traps. Because some of these are so sneaky, they trick even the smartest people.
[3:43] First up, store cards. Ever had a cashier ask, would you like to save 20% today by opening a store card? Sounds great, right? Wrong! It’s a trap! That discount is bait. They hook you in, get you to spend more than you’d planned, and now, surprise, you have a new line of credit that barely helps your credit score at all. Store cards don’t carry the same weight as major credit cards on your credit report, but they do carry sky-high interest rates. Oh, and those no interest until next year deals? That’s a ticking time bomb as well. They don’t actually give you free money. They’re betting you won’t pay off the balance in time. And if you don’t, they’ll slam you with all the interest from day one at an outrageous rate. You think you’re getting a deal, but they’re playing the long game, waiting to crush you with backdated interest. Hey, same thing with buy now, pay later apps, you know, like Klarna, Afterpay. They make it feel like breaking a big purchase into small payments is smart, but miss just one? Fees pile up fast. It’s not budgeting. It’s just another way to get you spending more than you planned.
[5:03] Let’s wrap this up with a simple no-nonsense debt game plan.
[5:08] Ditch the high interest rate debt. If you’re carrying a credit card balance, wipe it out fast. Use credit cards smartly, points and perks, without ever paying interest. Stay away from debt traps. If it sounds too good to be true, it’s designed to make someone else rich. And if you’re serious about breaking free from debt, my Steve’s ultimate debt repayment plan is waiting for you inside that blog post I just published. So head over to getoutofdebt.org. Hey, I’ve put the link in the description. Start making smarter money moves today. And before you go, boop that like button, subscribe, and check out my other posts on getoutofdebt.org. Got a money question keeping you up at night well don’t just google it get real answers from real people who actually know what they’re talking about head to get out of debt.org slash podcast to ask your question you might hear it on an upcoming episode but hey if you’d rather keep it private. Damon Day has your back. Visit D-A-M-O-N-D-A-Y.com because getting out of debt is easier with the right help. That’s getoutofdebt.org slash podcast, where smart money questions lead to smarter money moves.
