AAR24 - Credit Cards: Tool or Trap?

The Investing for Beginners Podcast - Your Path to Financial Freedom

Andrew Sather & Glassbox Media

Business, Investing

4.2 • 1.5K Ratings

🗓️ 18 November 2025

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

You can download Evan’s free monthly budgeting spreadsheet here:https://einvestingforbeginners.com/budget/ In this episode of At Any Rate, Evan Raidt and Dave Ahern tackle one of the most misunderstood tools in personal finance: credit cards. They open with real-life horror stories—from a $20,000 cash advance to chase a “hot stock tip” to a college student stacking cards to upgrade his truck—and use them to show how easy it is to slide into crippling debt. Evan and Dave also walk through the emotional and behavioral side—why points and 0% APR offers can push you to overspend, and why your credit limit is not your spending power. But it’s not all doom and gloom. They outline the right way to use credit cards: as a tool to build credit, get fraud protection, and earn cash back—without ever paying a dime in interest. You’ll hear practical tactics like weekly or automatic payoffs, keeping utilization low, consolidating high-interest debt with a personal loan, and even how parents can give their kids a head start by adding them as authorized users. Topics Covered: How credit cards actually work (revolving credit, hard pulls, limits) The dangers of “free” points, perks, and 0% APR offers Why your credit limit is not your budget Consolidating card debt with a lower-rate personal loan Fraud protection: credit vs. debit in real-life examples Timestamps: 00:00 Intro and credit card horror stories 03:25 How credit cards really work (applications, hard pulls, limits) 06:40 Interest, fees, and why minimum payments are a trap 11:20 Average American credit card debt and compounding math 15:05 Why points and 0% APR can push you to overspend 18:40 When to consider a personal loan to wipe out card debt 20:20 Using cards to build credit and help your kids’ credit 23:10 Fraud protection: why Evan and Dave prefer credit over debit 26:20 Building a healthy routine: budgets, autopay, and utilization 30:35 Warren Buffett’s “bad” credit score and final takeaways Resources Mentioned: Free monthly budgeting spreadsheet:⁠https://einvestingforbeginners.com/budget/⁠ Have questions or a credit card story to share? Email Evan at [email protected] or comment below—your questions help shape future episodes. Remember, financial freedom is built one smart move at a time. Keep it simple, keep it steady, and at any rate, we’ll see you next time. Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening. ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Today’s show is sponsored by: Go to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠SHOPIFY.COM/beginners⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to start selling with Shopify today. Download the ⁠⁠⁠⁠⁠Plynk app⁠⁠⁠⁠⁠ today to start building your investing confidence. ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Buy and sell your next car the easy way with, ⁠Carvana⁠—no haggling, no hassle, just click and drive. ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Have questions? Send them to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ SUBSCRIBE TO THE SHOW ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Apple⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Amazon⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Overwhelmed by investing.
0:03.0	If you're anything like us, the hardest part is getting started.
0:06.0	That's why we created the Investing for Beginners podcast.
0:08.9	Our goal is to help simplify money so it can work for you.
0:12.4	We invite guests to demystify investing.
0:14.8	At least like the minimum 10% into the 401k.
0:19.1	I'm Dave Ahern.
0:20.4	And I'm Andrew Sather.
0:22.2	And we hope you join us on the Investing for Beginners podcast.
0:25.8	On the Investing for Beginners podcast.
0:30.4	Honestly think that that minimum payment is one of the sort of, at least in my opinion,
0:36.6	the sort of scummy ways that the credit card companies have it phrased to me, because in my mind, if I see minimum payment, I think, okay, if that's the minimum, then that's the minimum that I need to pay to avoid any bad things happening to me.
0:50.3	At least me personally, that's the way I read it and I feel like they they phrase it that way specifically
0:54.5	but the truth is like you said that minimum payment has nothing to do with you not paying any
0:59.1	fees or paying any interest or anything like that that's just before they're going to start
1:02.7	taking you to a debt collector or something we're going to go down a
1:05.5	a Greetings, everyone, and welcome back to at any rate. My name is Evan Ray, and we are here to
1:21.6	help you make sustainable financial changes without breaking a sweat. And today we're going to be,
1:26.0	as always, tackling a touchy subject that applies to pretty much everything in the financial sweat. And today we're going to be, as always, tackling a touchy subject.
1:28.5	That applies to pretty much everything in the financial sphere. And today it is credit cards,
1:33.1	hotly debated, again, as everything else is. But today I have back my star podcaster Dave Ahern,
1:38.5	who's got some great experience, I think, as a bank manager that will lend itself really well
	...

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