Is Dave Ramsey Right? Are Credit Cards the Cigarettes of Finance?

I’ve been listening to Dave Ramsey’s radio show on my way home form work the past couple of weeks, and I must say I really enjoy it. But he does keep saying something that kind of bothers me a little:

“Credit cards are the cigarettes of the financial world.”

It sounds good, and certainly gets the point across, but is it really true?

I mean, strictly speaking, cigarettes kill the user over time. There are no healthy benefits to smoking cigarettes.

Contrast this with credit cards and the comparison falls apart. Credit cards don’t necessarily kill (financially speaking) the user. Credit cards, unlike cigarettes, can be used in moderation without negative effects. In fact, rewards cards can be beneficial.

I think misuse of credit cards is the cigarette of personal finance.

You can certainly ruin your financial health misusing credit cards, and people do become addicted to them, but they are not always bad for everyone all the time.

• The Many Benefits of Business Credit Cards.
• Using Secured Credit Cards To Rebuild Credit.
• Credit Card Mailings Rise To Highest Level Since December 2008.
• 5 Credit Card Pitfalls to Avoid.

• What is a Secured Credit Card?
• Make Credit Card Debt Disappear With 5 Simple Steps
• The Truth about Credit Cards and Debt pt 1
• Everything You Need To Know About Credit Cards