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- Growing up, Dave Ramsey’s financial advice helped my parents get out of debt.
- But following his no-debt rules was limiting for me, and ended up costing me money.
- I finally sought alternative advice and got a credit card that I always pay off in full.
When I was in middle school, my parents took Dave Ramsey’s Financial Peace University course through our church. His principles helped them pay off debt and build healthier, more sustainable financial habits.
As I grew up, my parents passed Ramsey’s guidance on to me. His ideas shaped my view of money — especially my view of debt. Ramsey is against all forms of debt, even going as far as to recommend paying cash for a house to avoid a mortgage loan. He especially warns people about the evils of auto loans and credit card debt.
I soon internalized the idea that my main financial goal should be avoiding debt at all costs.
It doesn’t sound like a bad idea, but I eventually realized this mindset was holding me back.
Paying for everything with my debit card wasn’t working for me anymore
Throughout my teenage years and early adulthood, I followed Ramsey’s advice and avoided almost all types of debt. I bought my first car with cash. I used my debit card for everything. The only debt I couldn’t avoid completely was student loan debt, but I managed to minimize that burden by completing my four-year degree in just three years.
But as I progressed through my 20s, I ran into more and more limitations. I couldn’t book a hotel room with just a debit card. I paid extra fees when using my debit card overseas. I also felt I was losing out on potential credit card perks like rewards points, airline miles, and cash back.
I hit a breaking point after relocating from the USA to Canada in 2021 and dealing with foreign transaction fees on every single purchase. My irrational fear of debt still lingered in the back of my mind, but I started researching credit cards in earnest.
How I chose the right card for me
I read up on various banks and credit card companies, types of cards, rewards and perks, sign-up bonuses, and annual fees. I asked family and friends for recommendations.
I was still wary of debt, but I read that many people pay their balance in full each month and never pay any interest. I was confident my solid financial habits would keep me out of trouble and out of debt.
Eventually, I picked a card, submitted an application, and waited. I worried my lack of credit history would make it harder to get approved, but my student loan payment history proved to be enough.
Right after my 29th birthday, my very first credit card arrived in the mail — a U.S. Bank Altitude® Connect Visa Signature® Card. I chose this card for a few reasons:
- No foreign transaction fee
- Good reward rates on travel categories
- A generous welcome bonus offer
Additionally, I have a long banking history with US Bank, and I liked the idea of having my debit and credit cards with the same institution.
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I’m using my credit card responsibly and racking up rewards
I have been using my credit card for several months now, and I’m very happy with it. I use it for almost everything, and the rewards points are stacking up. I love no longer having foreign transaction fees.
I’m not afraid of misusing my card or overspending, but I do pay my credit card balance in full every single week — just for peace of mind.
Ramsey’s advice and programs have helped many people, including my parents. I’m grateful they found financial freedom through Financial Peace University and passed some valuable financial lessons on to me.
Adopting Ramsey’s cautious approach to credit and debt likely protected me from developing irresponsible spending habits when I was younger, but I’m glad I sought alternative advice when his debt-obsessed mindset was no longer serving me.
