I apologize to the original poster for this thread hijack, but I must answer this.
Quoted: What are the benefits of credit cards and what are the drawbacks?
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Benefits
1. CCs allow the user to fully participate in most every form of e-commerce.
2. The user receives a detailed itemized record of their monthly spending - useful especially for home finances, home businesses and some tax issues.
3. I've built and maintained a strong credit history with my responsible use of CCs, mortgages and installment loans. As some of my family members have found out, always paying cash does not build credit-worthiness. (NOTE: Credit-worthiness is now being used by prospective employers and insurance companies to judge "how good a risk this person is." Like it or not, that's the way it is.)
4. I use somebody else's money for 28 days and I don't pay interest. I only buy what I can pay for.
5. Hopefully unnecessary but, quick unsecured loans for emergencies, etc.
Drawbacks
1. Again, if used wisely and responsibly - I don't see any.
2. If the consumer can't excercise self-control, they should pay cash or barter.
Shackle, you've described the irresponsible use of consumer credit. Hopefully, Dave Ramsey advocates the responsible use of consumer credit and not the return to the commerce practices of the nineteenth century.