Why Debt Balance Transfers Don't Work
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- čas přidán 19. 07. 2024
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Balance transfers work if you are SERIOUS about paying off the debt BEFORE the promo expires & with little to a zero % transfer fee. I did a balance transfer & the transfer fee was 0.99% so I saved hundreds in interest by doing the transfer. I had one year on the 0.99% promo & I’ll be paying it off 5 months early because I’ve been aggressively paying the debt down. It worked for me because I made a plan, stayed committed, and got it done.
I did this. I agree you need to be serious about paying off the debt when you transfer to a 0% balance. They were paid off before their 12 month offer ended. It saved me money. I quit using credit cards - and the 0% balance card was never used.
@@alexcarbery8189 It is called talking to an adult as an adult.
Agree - I got hit with a $4,000 bill for my MIL's cremation and other final expenses, which would have been paid off in a matter of months if COVID hadn't have hit literally 1 week later. A 0% balance transfer saved me a lot of headaches not to mention a lot of $$$ in interest because I did the math regarding transfer fees, and made a plan to get it paid off before the promotional period expired. I didn't use it to postpone the inevitable or shuffle around existing debt. While I agree with 95% of Dave Ramsey's teachings, responsible use of credit is one area where I beg to differ.
I agree. Only if you divide the balance by the months allowed, no minimum payments, stay vigilant, make a mental adjustment, cut up the card, let it time out, and just plain sacrifice a bunch!!! And/or find a sidekick, too. 👍
@@alleykeosheyan4779 Over 17.06 Trillion in household debt would say otherwise.
One of the better explanations from Dave. It DOES work mathematically, but it doesn't work without behavior modification.
Because majority of ppl do the balance transfer and make min. monthly payments cause " I got 1% interest rate now"
It helped me 10 years ago. 29% store card (dumb thing to take out) to 0% for over a year. I knocked it out without interest in half the time and never used it again.
Yea I used balance transfers to pay off 12k in credit card debt but never got into that much debt ever again. It helped a lot because the fee wasn’t nearly as much as the monthly interest.
Exactly!! This is how I got out of 20K worth of CC debt. Never again. I was living WAY above my means. If you have self-control it is a way out of the madness at least for CC debt.
Agree, same here, used properly, it's a godsend
Did same, mostly when they had zero balance transfer fees, now I will be debt free by next spring about 45k. Vehicles and boat.
Transferring my credit card debt to a lower interest credit card really helped me. No transfer fees transferring to my bank credit card. Might as well make life easier.
Yup exactly
Most people end up just spending more, and it doesn't solve the problem.
Yes. E.g. lines of credit tend to have lower interest than credit cards. Seems smarter to transfer it and then tackle the debt.
@@dudeorduuude5211 If only that would work....
You could save a LOT doing it this way. I saved a lot, with yearly income then under 45,000. It helped us a great deal. I also take couches out on 0% interest to give me a lay-a-way option. That is after making sure I got the bottom price I could get.
If you can pinky swear and spit shake that you're done with debt, the $500 you pay one time to transfer 10 grand will be far less than the total interest you'll pay over the course of paying it off without transferring it.
"YoU cAnT GEt a paSs oN math"
-Dave Ramsey
It's not the president, I suffered under Reagon, Trump and Biden to some degree. I lost my deductions with Trump, you adjust.
My household actually chose to transfer our high interest rates to a very low interest LOC but that was only after we had done all the groundwork and behavioral changes and were ready to tackle it head on. I understand that method is not recommended but with that financial mess now in the rearview mirror, I feel like it can work for a small amount of people.
It worked for me, also. He is always talking in general terms, but what he asks for people to do is what the few do. His methods are very contradicting. He wants to apply extreme methods, but his argument to someone questioning his methods, is that is not done by most. So, which one is it? Had it not been for balance transfers for the 7 credit cards I had, I would not have gotten out of debt as fast. It allowed me to focus to 1 credit card at a time and it did save me thousands. Most importantly, peace of mind.
@@vidarebornlonewolf I also wouldn't pay off a small 3% card before my 18% but thats me. No one has a gun to your head. The people who call sound so clueless. I think mandatory finance class for a semester in high school is needed. No maybe's, you have to take and pass.
@deb9806 some of the most well educated individuals have no sense of finance. I worked handling student loans and the things I heard out of doctors and attorneys' mouths boggled my mind. They basically had given up and only made the min payments, which didn't even cover the interest. It requires more than a few classes, the culture needs to change. Our grandfathers had barely any high school education and were much better at saving money than 99% of today's generation. So, your argument is full of phallacies.
They work if and only if you can change your spending habits and if you can pay them done as quickly as possible.
I did a valance transfer and it saved my butt. I wasnt charged anything to transfer and was locked into 0% for a full year. I graduated from grad school a month and a half before my job started and Iwas already in debt. I lived on a credit card for those 45 days and racked up a good deal of debt. I was very diligent when my job started and paid it all off before the interest started accruing. No longer have a credit card, but the balance transfer helped me a lot.
Oh, balance transfers work alright, if used properly as part of your debt snowball payoff plan. Going from 12-18% to 3-5% is a great way to park that debt while you concentrate on others. But make sure that debt is going to be parked for the term of the 0%. You are paying the 3-5% upfront via the transfer fee. If you transfer and then pay it off 2 months later, you spent money for nothing. We paid off a bunch of cards by parking some at 0% until we could get to it. Also, set a reminder so you know when your 0% is ending in case you need to re-transfer or pay it off.
Loved to see Dave actually say it could be beneficial as long as you change yourself as well. If you do it you have to see it as a challenge/goal you now have 12/18 months to get it all payed off so get gazelle intense and pay it off.
Always the IF 😮
I had a credit card company contact me to transfer to their card. I have zero credit card debt. Couldn't get it through the person on the other end of the phone. I finally said Why would I transfer to your card when I have nothing to transfer? That ended the conversation.
Myself, I wouldn't have even answered that unknown call.
Everyone wants to be wise, but nobody wants to suffer. Everyone wants to go to heaven, but nobody wants to die.
If you are paying a 5% up front fee followed by 12 months of no additional interest, how is that not better than paying a 25% annual interest rate? Even if you fail to pay it off before the end of the 0% term, you still only paid that lower interest rate vs the regular rate. Ideally you'd just get a 0% offer on an existing credit card, and not sign up for a whole new card. Dave's constant concern is that callers don't have the willpower to follow the plan
Its more than math. Depends pn behavior
@@Dan16673 behavior won't change paying 29% interest any more than 0 if they don't want too
reminds me of all the folks who got a free pass from rent , mortgage , school tuition ,.... etc during covid . They all had the chance to do something smart with that money but didn't , knowing they'd have to pay it.
When I was getting out of CC debit. the first thing I did (before I could qualify for a LOC and transfer the debt there for a really low interest rate) was to switch my CC to a lower interest rate card. Same CC provider, same card number, just removed whatever points system was on the card and got a lower rate. The low interest rate option came with a $40 annual fee, but the lower rate was saving me $100+ month in interest.
Massively helps, obviously pay it off in the free period
The only problem with the 0% card is if you don’t pay it off within the promotional period, they can back charge you all the interest you would have paid during the entire promo period. So you could get hit with 12-18 months of interest anyway.
Lol no they dont
@sasukesuite1 I have seen the back charge on interest during the 0% interest promo period you mentioned on new credit cards, that did not have a balance transfer, such as Firestone auto repair. Another aspect not mentioned in this video is potentially taking negative hit on your credit score by closing an existing account and opening a new credit card account. Hence why I never did a balance transfer due to how could hurt your credit score.
Thats why you do another one at the end. you pay the small fee or even sometimes there is no transfer fee and move it to another 0% card and PAY THE STUPID THING OFF. When people get these cards and their minimum payment is less than what they were paying before....they just pay that minimum payment. You should keep paying the payment you were paying before on the old card.... all of that is going to the principle. THAT is how you pay it off. Or divide what you owe by the number of months of 0% in the promo and pay that payment.
@@JOZoSo. Oh yes they will! There are no free lunches!
You need to know you could do it.
And the trap by switching to a different card is that people still use the old card so then they have two minimum balances.
Yep. When you switch cards you think you did something(like Dave says) even though all you did was move it. Now you use the card that "you paid off" again.
PREACH IT, Dave. 😊❤
Depending on the combined balance of the credit cards, the 3-5% balance transfer fee may be worthwhile.
I think it would be always worthwhile unless you can pay the whole balence in one or two months
it is worthwhile if you pay it off
No, you should do the balance transfer and immediately cut up the card. Then put a block on your credit report. Most people aren't going to be able to really control their impulsive behavior. It's better to work on it while also getting rid of the temptation. An alcoholic would go to AA meetings while ALSO not allowing alcohol in their house.
I knew Dave recognizes the obvious math gains for these types of things so it's nice to see him acknowledge it (while acolyte George fails to acknowledge it even tho he surely knows the clearly benefitial math as well).
The behavior for ramsey followers is the biggest issue so I get it. The constant debt revolvoling door behavior of many people is the 7 ton elephant in the room.
George is a sheep with no opinion
$1500 saved in a year might not be much to Dave but to MANY families struggling in Bidenomics….that is A LOT
He did say it would be worth it if you've changed your behavior.
When I had a dumb Kohls card, they offered me (Chase) did 0% and I never used either again. Chase eventually canceled it for non use and Kohl's just gave us asking me to use it. It was so much nicer, why pay interest? That is not dumb to me, paying interest is.
Every bit helps, but come on….the government doesn’t set prices….corporations do.
I agree with you
We work hard to save that money
While I believe George’s answer was honest, I feel like they all say what they want Dave to Hear lol
They wouldn't be employed otherwise
George is good. He's just not as well seasoned as Dave. And you can never expect the acolytes to be the same as the guru.
Very much agree. And Dave seems to be a little disillusioned and misinformed on how people end up in debt. Not everyone is there because they had extreme spending habits. For example - some end up in debt because they are 1st generation immigrants who have arrived to further their education and do not have the means to financially support themselves on a low socioeconomic income - yet they are determined to succeed in gaining more education so they can create a better life for their families in a new country. Every situation isn’t someone who just couldn’t resist buying luxury shoes - that’s where he falls short
Of course or you are let go. You want your job, you sing Dave's praises. One guy said he was offered a huge severance if he signed something not to talk about Dave. He didn't take it. Too much control.
@@curiouscat3384 And even if they know many, many people do "Dave lite" keeping a card like a normal person for emergencies but don't use otherwise, they wont let them say they did it with his help. He is that controlling. Many on youtube talk of how they used most of his points but couldn't call in because they didn't cut up card and wouldn't lie (maybe some do) Silly but his brand
Also .. cut up the credit card that you transferred from.. so you don’t start using it again!
I have used balance transfers with credit cards with 0% apr for 18-21 months and paid off lots of debt. I usually am paying 10 x the minimal balance though.
I hit them hard and paid off car bills I put on an over `15% card and a store card. I never used the 0% card again, they canceled it and I never used the store card again. It was a big savings to our family. Only one working then with 3 kids under 5 and I would never listen to that logic
ABSOLUTELY RIGHT! Only gazelle intense, intentional, responsible spenders should do this. It's just too easy to be complacent once you've gotten rid of that 20% interest charge on your statement every month. You'll just be in MORE trouble a year from now 'cause you've added another card and more to your credit line. Your debt just continues to multiply.
I did this when I was broke. And at that time, it was 3% or a max of $50. So it made sense on a higher balance. I was able to knock it out in less than the year the 0% offer was for.
My husband and I did balance transfer and we paid off our debt pretty quickly.
I understand why Dave says don’t get into debt
I’m 27yrs old
Male
I make under 30000
I ride a 2000 dollar e-bike
Car free
My bills are the same every single month
I pay cash for everything
I like that I don’t live paycheck to paycheck
I love that every time I get paid I decide what I want to do with it
I don’t have to do things I don’t want to besides work my 9-5 job
And it’s not even that bad of a job
I feel rich…and I make under 30k a yr
I have no kids no wife
I save around 500 a month
If a door dash which sometimes I do with my e-bike I can ride my income
I also invest
Your job better not be that bad if it only pays 30k
Keep that same momentum and get some higher paying skills or career an watch out for lifestyle creep
double your income and keep living like you make 30k for a couple years
We did this and paid off our credit card debt which was accrued due to transferring many medical bills to credit cards after our son's death. That was years ago when there were no penalties. We would flip flop about 3 cards every 6 months. We cut up the cards and never got another credit card again. It worked for us but you have to make sure to not use them while you're paying them off and pay as much as you possibly can starting with the small balance first, then you are incentivized as you make progress. Take the amount you were paying on the ones you paid off and add that to the next card.
Did this too and it worked out great, I just had to get my behaviour right. Dave is never flexible with his methodology; it’s always his way and that’s it. This is what lead me to The Money Guys and other financial shows that are more Modern. Dave is good if you’re in debt and don’t know anything about finance, but you will outgrow his ways once you understand the behaviour part of debt and spending.
@@Kamil576 yes, our debt was not about lack of discipline. We just got tired of receiving bills from Medical places after our son passed away. It was a stabbing reminder every time we went to the mailbox. Getting a bill from a card company was easier somehow. And since we didn't use the cards for anything else, we didn't fall into the trap. There are exceptions to some of Ramsay's rules that he may not even think about. I understand why he is so hardline about things, though. Many folks just won't change without a father figure type kind if scolding them and holding them accountable. Blessings, Kamil.
Broke people SHOULDN'T go out to eat when they're BROKE. Unfortunately, broke people DO go out to eat when they're in debt. That's why they're BROKE.
There is the reason they are broke in first place
Nah, broke people go out to eat, because they have more then a half million dollars burried down, while trying to collect more debt, just to kill the system, they are a kind of economy terrorists, and they are sure winning 👀
We did this in 9 months after marriage on 100k income.
@@celularphonedid what?
@@superblump87 I know right..I think we missed it lol
I like that Dave is telling it like it is, admit you are dealing with people who can't stop spending. I paid things off with high interest with interest free and I saved thousand at least. I also buy furniture on the layaway type of free year and do it 9 months. but it gives me breathing room at times. I also don't like smallest credit card first, but understand to someone it might be what they need. I wanted largest interest because it seemed dumb to pay ,more on a larger balance. That large one I used 0 transfer and others I paid off as I chipped away at that. It worked....but it's individual.
The caller wasn't asking about solving his issue with his spending habits, he was asking about getting out of debt. And yes, the credit card transfer does work but you must pay it off by the end of the term. The fee generally is cheaper than what you would pay over the coarse of leaving debt where it's at currently. I used it and only paid $100 for the transfer, worked out the interest savings correctly that I would have paid which was between 800 to 1000. Gave me margin to get debt free and yes, I am debt free now and saved thousands in interest from getting that margin to start with on the rest of my debt. It does work but you must be disciplined. Sorry Dave, but you didn't pay attention to the real question. Also, volcity banking does work as well but again you must be disciplined. I have helped a friend do the same thing and she now has paid off a lot of debt and is close to being debt free. What you do after that...is on you and don't complain if you go back into debt.😊
3% is only $300. If the offer is for 12 to 18 months at 0% interest instead of 30% interest today or 45% over 18 months is a huge advantage to pay it off.
1500 will help. While not accruing more debt.
Been offered a balance transfer with no fee.
Yup there's 0 balance transfer fees if you do it in the fired 60 days at chase. 18m no interest
The card consolidation works ONLY if you are ready to pay it off in a year.
*Also, if your neighbor's young brats like to throw rocks you should sell your house, go from a 2.5% to 7% mortgage, because you and your kids need a safe zone with zero engagement with other people and continue the fear of mature people responsibility.
😂😂
These people are so closed minded. Get a 15 yr mortgage to cut the amount of interest paid, but don't transfer to a 0% credit card to cut the amount of interest paid. Smh
But you're ignoring Dave's main point which is that playing interest rates ONLY WORKS IF YOU CHANGE YOUR SPENDING HABITS !!!
@@curiouscat3384 understandable, but he mentions nothing about transferring AFTER changing habits.
@@curiouscat3384 And what makes you think no one will change?
@@curiouscat3384 Sometimes it's hard luck, not spending habits. We had when I was home with 3 kids under 5, water heater break, brakes on old car needed front and back, rotor on another. You get hit in clumps sometimes. Stretching out payments, interest free didn't empty savings and made me feel safer. Once it went up to another number, I didn't use it. Never hurt my credit that they closed them either. It's been over 800 the last 20 years. Paid off mortgage 2 years ago.
there is psychology behind being more motivated to pay off 20% rate faster than 0% - but i’m still taking the savings
George's answer is weird "how many have built there wealth Dave". The question was about transfering debt to a 0% interest card to pay off his credit cards faster...not about building wealth. Do these people even listen to what people are asking anymore?
They are such stepford robots sometimes, they say wealth about everything. My BIGGEST pet peeve is points, no one on any site, anywhere says points make you rich. They are just nice. They do pay for trips, they do pay for some people entire Xmas list and if they pay the cards off in full, it's gravy. No one can intelligently counter that which is why they bring up wealth. I know and knew many very rich people. They all used credit and it amazingly never said it made their wealth. Job growth and good investing and inheritance at times, made their bounty
@@deb9806 One time it seemed Rachel was struggling with that concept, you don't want to come off stupid. Again, you don't get rich but my sister not realizing years ago, she had points, lol, bought all her gifts that year with them. 2 years worth I think. Gas cards, Gift Cert, etc. She was so happy. No balance.
They do this wierd thing where they think everything is to get rich. Its often an odd response
if it helps pay off the debt faster with less interest, it will get you to wealth faster
Who said balance transfer was a wealth building tool???
If done right and serious, you can pay off debt a lot faster and save a lot of money with the interest
It is a no brainer if you're serious about paying off debt. If you're not, then don't waste your time
Everything with them is deflect what makes sense and hit them with "they wont get rich". No one is talking about that. Just admit that some people will keep their savings and just use Amazon points and credit points for gifts and others will use them and run up their cards. Just say it. Don't pretend it doesn't happen every day.
@@deb9806 that’s what I don’t like when they say millionaires aren’t getting rich off it when no one says they do. If I’m tryna get rich off collecting points off credit cards, then I have a bigger issue in my life 😂😂
You can't do it right. If you have debt, you're already doing it wrong.
You should have an episode on those debt transfer cards, find some people who did debt free screams who fell into them. I've seen a lot of people spiral their debt by transferring debt to a new card every 6 months before the "free" interest rates expire, so now they have a line of 10 predatory cards on their credits and fees, no debt paid down.
They are not working the balance transfer correctly that's why they spiral.
I had a guy in college that did this nonstop he also had no job whatsoever.
I hate debt so much, whenever I can score a windfall or extra, it goes to pay utility bills in advance.
That's silly. Invest instead.
Well at least you have the discipline to do that. Keep chugging away at it - increase your income any way you can. You can do it!
So……it actually DOES work, mathematically but it’s all about the mindset, which is what Dave’s program is all about. Pay off that smallest debt and snowball the payment. You’ll “feel” good and keep the momentum. For those that don’t care about psychology, look at the numbers and follow the math.
I'm not a big math person but I could never pay off the low interest first and watch the interest on the large ones accumulate paying minimum. I couldn't believe for psych reasons he'd have his people following him, pay more in interest to get a "win" on a 100.00 dollar credit card.
@@workinprogress-ye5or well, that IS the Dave Ramsey way to get the psychological factor out for Baby Step 1 and 2
I had zero transfer fees.
I agree with Dave on most of what he saying about this. However each situation is different. About 5 years ago my wife and I had about 15K on a credit card. We moved it over to a personal loan at about 9% I think. Once we did, we viewed the debt differently. It was more like a car loan. One reason, we couldn't add to it. The other is it had an end date like a car loan would. Long story short we paid it off in about two years and as we speak we have a zero credit card balance because we did change our spending habits. Our goal is to NEVER be in credit card debt again. Especially with rates close to 30%.
I did this because the card didn’t have a transfer fee and 18 month pay back period. I paid 8k in 11 months and didn’t have to pay any interest then closed the card.
I remember that Australian security guy from Jurassic Park who got involved in velociraptor banking.
I've been using zero percent cards for a couple years now. I've actually made 200 dollars from two of them, granted I had to spend two thousand dollars on each. I paid both off before the interest rates changed and my current credit usage rate is under 3 percent. I will be applying for another card soon that has zero percent for 21 months that I'll be using to finance 4 to 6 months off work. Once I am back at work I will pay it off as quickly as possible. In 2025 I will finally be able to just finance myself on My next hike.
i got the chance to transfwr for a small fee and then had 11 months interest free....im almost done paying it off and still have almost 3 months left....the interest before was killing me...i couldnt get ahead. now light at yhe end of the tunnel
Switching to 0 percent gives you a mental boost just like the debt snowball does.
I love 0% interest cards but I'd never transfer an existing balance onto a 0% card. I'd just pay off the original card immediately. I will cary debt, but only at 4.99% or less on a falling balance to keep a rarely used store card open forever for cheeper home renovations over the next deccades. Pretty much breaks even or is slightly profitable.
The main reason people do balance transfers to a 0% CC, is because they can no longer afford the min payment when the interest hits.......and the game continues while CC companies keep offering 0% INTEREST RATE CC for 15 months 😵💫😵💫😵💫
Balance Transfers are and should only be the icing on the cake, but people without any actual cake, eat icing in its place and think it's the cake.
so yeah i do use credit cards in today's world ( i never carry cash anymore in public or have any cash or gold/valuables stashed away ... who wants to get robbed right?)... i pay my credit cards off every month (and i think of any fees as the cost of safety in today's world)... i do wish that "today's world" was different but it's not... well, i take that back some. i carry a wad of one dollar bills that i keep as a throw away/distraction .... i throw it in the air and let them scatter and run away from the threat...that's "today's world"
my daughter traveled for work for 4 years, international and here. Never would she carry cash or give anyone access to her savings account. And if you lose cash, you lose it. John D mentioned that once, a wad of cash he was given to go somewhere (they also have debit card) but if he lost it, I guess his check would have been smaller. lol
That was a big in the 80s and 90s. Thought it was stupid then when it’s just easier to live within means and stop spending.
Surprised this is still a thing.
took an 18% interest debt and put it on a new card with 0% for 18 months Paid it off before 18 months, you have to pay it off.
Hate that you say it does not work... but the problem is the person's spending habits must change. I just spoke to my very old friend and he just told me he leased a car... I called him out and said WHY waste your money... POINT IS to become rich you really need to tighten your belt.
The other thing I don't understand is why people think airline miles are an amazing benefit. If you think "taking advantage of free plane tickets" is helping you, it just means you are broke.
If its a person who's truly focused on trying to pay down their debt within the time frame you have the 0% card will be helpful...it really helped me. If you're a person who's just going to continue using the credit card then no its not going to help...so i partially disagree saying this isn't helpful.
Dave talks about all the fancy tricks the credit card companies use to entice people into using the cards. And how more often than not, people lose at whatever game, and end up paying the credit card company more money. These 0% balance transfer cards are just another one of their ploys. Its like the airline miles and the cash back points. They are hoping you take the bait and get your little pinky toe caught in the machine. Then they pull you in and grind you up.
Well I got a personal loan for 10.75% while it was over 40% over 2 cards plus 18% on another one so I just took a personal loan for 8k and will have all debt paid in 5 months
So credit cards are ok if you have good behavior with them?
7:53 Dave Ramsey really talked about himself
Georgieeeeeee, tell uncle Dave dont cut you off again respectfully 😊
Again, it is so sad that Dave is wrong. At one point he even did the math... save $1,500.00.
In other words, save nothing.
@@amireallythatgrumpy6508 What are you talking about... I believe in penny pinching and that is how you start. I am living proof.
Interest is a killer. There are 0% cards out there now that give you 18 months to pay off your balance. Do the math to see if the 3% fee vs continuing to pay high interest, makes mathematical sense.
As a 55 year old man I have never dealt with debt. I just don't understand why people have debt. You should always live WAY below what you make. Your net worth should be at least 250,000 before you bring ONE child into the world. Staying out of debt is as easy as breathing yet people can't seem to do it.
Some people charge anything to have a good time. I wont charge vacations and come home to a 5000 bill. My husband was a cop, he worked extra jobs but not all the time. Many cops had extra jobs become their income and couldn't budget when they were cut.
I totally disagree with Dave Ramsey. It depends on how much that you have are transferred to other credit cards. It works for me because you have a certain time frame to take care of the debt sometime I think that Dave should be a little more open minded about certain situations
He's seen too many people try to hack 0% cards and fail, you can hear the bitterness in his rant. Some people manage to thread the needle and get out of debt with a 0% card, great for them. But the card companies are the casino, and the odds favor them that at the end of the year you'll still be in the hole and hit you hard with predatory interest or a years back interest, leaving you in a deeper problem. I saw one show where a lady who managed debt by transferring 0% cards every 6 months. So now she had 10 cards open and all the transfer fees, and what's worse she spent on every card, so it was 0% on compounding debt. You can pat your back and justify the math of no interest, but it's behavior that pays of debt, not a scheme from the card company.
First Hi Dave
Balance transfers do work to save you cash, I think Dave is just worried about giving the thumbs up for the people who can do it right when he knows the morons will use his approval as an excuse for their bad behavior. I’ve noticed the trend with Dave lately that he’s gotten to the point where he pretty much has to assume that every caller has an IQ of 60… not his fault though, just the times we live in.
Can you keep balance transferring from card to card?
Won't solve the problem in the first place
Metaphor: Alcoholics shouldn't even step foot in a bar. Period.
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Dave talks about life long principles, but a lot of listeners think is only about the immediate problem.
This is candid.
He said it like it was immediate and just don’t do it. He should have just said don’t do it until you think you change in his first statement.
Dave, you have that right. Biggest cons are marketed to teh scared and greedy and also especially I have noticed, people in their 60s who cannot afford to retire. They are always looking for get rich quick alternatives.
No one is saying this will make you rivh.
I was waiting on the alternative solution but I guess it’s simply - just keep making those more than minimum payments and say a prayer.
Or DYOR and find CCs that offer no balance transfer fee and 0% interest charge and dave money while paying off CC debt 10x faster
The alternative is Dave's tried and true solution which is cut up the credit card, increase your income and STOP careless spending! Go back to the baby steps.
@curiouscat3384 thats not really a good answer for the short term.
@@curiouscat3384already did that so I guess I’m back to my original comment 👌🏾
@@MochaZillaThere we go! That’s the answer I was looking for ✅
IT absolutely does work... for a mature, sensible person. 5% one off is way better than 29% a year! But people calling on this show are not generally mature OR sensible....
This is why Ramsey doesn't know what he talks about all the time. Balance transfers was a great tool I used to get out of credit card debt.
I want to know why Dave always seems to have an itch on the top right side of his head 🤔
Just exposing again that personal finances is largely behavior NOT mathematics. The numbers sure do look good, but have you changed your attitude towards money?
Because 99% of the people don’t earn more to fix the debt problem that got you to that point in the first place.
These guys are a broken record. Debt transfer makes a lot of sense if you have a plan to pay it off within the promotional period AND the transfer fee is less than the amount you will save in interest.
There's also ways to use 0% credit cards to make extra income that these guys call "stupid". How about running company reimbursable expenses thru a 0% credit card and then pocketing the company expense reimbursement into a high yield savings account? Easy money. Just make sure you pay the minimums and the total balance by end of promotional period.
But Dave! I like to feel like I'm making progress!! ( oДo)
But you save money for. YEAR ON INTEREST!!
NO INTEREST FOR A YEAR DUMMIES
✝️
It does work. But these people always bring up strawman arguments.
Why are these people so against people saving money?
These 2 are so wrong. They always thing that people are still going to keep spending money. You are saving thousands doing this. They are so wrong.
No, Jimmy , you are WRONG. You are just a broke joke . You are Ryan Leaf in a Tom Brady chat
It's not strawman, it's why Americans have the highest ever credit card debt at $1 TRILLION. Most people need to cancel them
@@buckibanker Correct, household debt is 17.06 Trillion, Yes Jimmy is still an Id010
@@buckibanker It is a strawman. Do the math yourself, it works.
@jimmymcgill6778 he never said the math didn't work, in fact he said it would multiple times, just that it's a horrible idea because most people just run up the card again instead of canceling it
You don't need to pay a 3% transfer fee. You can do a manual transfer. Open a new card with 0% for 18 months and put every purchase on that card while you get gazelle intense on the high interest card. Then when the high interest card is done, pay off the 0% card. In the end you'll save a crapload of money. Anyone with 7th grade math skills can figure this out. There's nothing "scam" about it. Sheesh. Once you get to BS2 you should be hellbent on getting out of debt and reducing interest HELPS, duh. Dave constantly presents this as a false dichotomy wherein you do one or the other (transer money OR pay off debt). Wake up, Dave. You can do BOTH.
some do pay of debt, most don't. 0% cards are another CC scam.
@3DPT No they are not a "scam." You don't know what that word means.
It only makes sense to transfer the balance if you have a better place to invest the 20k than to pay off the debt.