Review: Breaking Free from Broke The Ultimate Guide to More Money and Less Stress by George Kamel

 I recently read George Kamel’s book, Breaking Free from Broke. It is much less a personal finance book and much more a tirade against credit cards, credit scores, college education, passive investing, ETFs, and more.

Here is my summary of some of the core recommendations:

• Don't use credit cards. In fact, don't even have a credit score.

• Avoid college debt. It is better not to go to college at all than to take out student loans.

The Credit Card Gymnastics

There is a lot to unpack in these arguments regarding credit cards and credit scores. Honestly, some of it feels like mental gymnastics. Objectively, there are times when using a credit card is simply preferable.

For example, when renting a car, you often get free primary or secondary insurance just by using certain credit cards. That seems like a solid deal.

When using a debit card, Kamel himself mentions many of the hurdles: you need to find a rental agency that accepts them, they may limit your selection of cars, and they will likely put a significant "hold" on your funds. Sure, you can do your homework and find a place that works around these restrictions—or you could just use a credit card and focus your research on finding something affordable and convenient, rather than trying to fulfill a bizarre "credit-card-free" requirement. Your time is better spent researching things that actually matter.

The Moral Argument

Kamel spends a long time discussing why credit cards are "evil." One of his more interesting arguments is that credit card rewards are paid for at the expense of people trapped in credit card interest. He attempts to dispute the idea that merchant transaction fees (the fees businesses pay to swipe your card) are what actually fund those rewards.

This is a fascinating moral argument, but I have a few objections:

1. Money is Fungible: From the outside looking in, I’m not sure you can make a definitive judgment on which specific dollar pays for which reward.

2. Accounting Realities: In accounting, there is a concept called Activity-Based Costing (ABC). This method attributes expenses specifically to the activity that drives them. To prove Kamel's point, we would need to look at the credit card companies' internal figures to see how they allocate those costs. This is all managerial accounting, which is kept private and differs from the public-facing financial reports these companies release.

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College vs. Debt

Kamel’s more accurate point is that college debt is bad, but he paints with such a wide brush that college in general feels under attack.

As someone whose profession requires a degree, I’m a bit skeptical of his assertion that college is often a waste. While the cost is definitely inflated, the "return on investment" (ROI) for many degrees still beats the alternative, provided you don't overspend on the name of the school.