The Ramsey Show Highlights "Why Can't I Use My Credit Card If I Pay It Off Every Month?"
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Nov 14, 2025 Miguel, a caller with firsthand experience of paying off his credit cards monthly, explores the balance between using cards for travel rewards and potential pitfalls. He discusses his concerns about impulsive spending linked to credit cards and reflects on the real cost of earning rewards. Dave challenges him to consider whether the extra spending for points is worth it. Rachel raises moral objections, emphasizing cash budgeting over rewards. They propose an experiment using debit to manage spending better, with an invitation for follow-up.
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Do The Math On Rewards Value
- Do calculate whether rewards exceed the hidden cost of using credit cards each year.
- Compare annual card fees and spending-driven costs to the value of points before relying on rewards.
Big Flight Rewards From Years Of Spending
- Miguel used points to cover $4,000 in family flights and paid only taxes of about $200.
- He estimates earning those rewards required a few hundred thousand dollars of card spending over years.
Avoid Fee-Charging Bill Payments
- Avoid paying bills that charge merchant fees by using credit cards for them.
- Use cards only where no extra fees apply and pay the full balance each month.
