I transfered to a 0 percent card and then paid everything off in 10 months. I dont get why what i did was wrong. I saved a ton of money. Now im debt free with an emergancy fund
It's not wrong IF you pay it off. It'll save you a mass amount of money in interest payments. Most people don't pay it off and all that interest you didn't pay suddenly gets tacked on. They make money and you're in even deeper. Just don't be that guy.
You didn’t do anything wrong. The key was that you actually DID pay it off. The Ramsey mantra recognizes that the vast majority of folks will do the transfer and STILL NOT PAY OFF THE DEBT. So, they say: “don’t do it”. The math is on your side and since you also brought the personal dedication and focus to solve the problem (that most people don’t), you did everything right. Ramsey would now tell you to just cancel the new cards (and the old one) so that you don’t fall into the trap again. And that is good advice.
How do you even "feel" it? We have a 7 figure net worth (with 2 mortgages and one car loan) and I am not feeling it.. You would think that in order to feel it, you would be drinking expensive champagne, etc. (which I can buy but I don't think that it is smart and I feel guilty).
If you are talking about the NY “hot girl” from the first video, her advice was pretty good. If you have high interest debt, move it to a 0% credit card and actually work on paying that debt off.
@@barnabusdoyle4930 it would only work if people change their behavior, but you know the majority don’t. They now get 2 credit cards and can spend more. I feel like it needs to explain the importance of changing behaviors and also getting slapped with late fees and high interests if not paid on time. There is just more to it. People can just take that information and get themselves into more trouble.
As many have already said and I agree with...a transfer to a 0% credit id absolutely a great idea IF the person focuses on paying the transferred debt off and not accruing any additional charges on the old or new card. This takes discipline...and those that have it will save tons in interest and pay the debt off faster. I did a balance transfer a few months ago and have paid 3500 at 0% towards a debt that had 23% interest attached....that is a WIN.
The cool thing is, you don’t have to pay it off faster. You just have to pay it off within the 0% interest window. If you have 18 months to pay it off, use all 18 months because 100% of it goes toward the principal. Any extra money you don’t need to put towards it can go towards building an emergency fund. You can basically kill 2 birds with 1 stone.
Sure but most people don’t have such discipline. Let’s not beat around the bush here this isn’t targeted at people who can finesse their finances this is targeted to people who will not pay it back on time. Whether that’s because they are too irresponsible or have a tough situation.
@@mikeyman1974 in spite of what Ramsey says, most people DO have enough discipline to stay to out of credit card debt. Less than half of Americans carry a debt on their credit cards. Credit cards are bad, but I don’t get why Ramsey and his people get hysterical about it and stretch out the actual numbers. You can easily make an anti-credit card argument without lying about it.
Love the advice on this channel, but if you're serious about getting out of debt, and you're gonna be gazel intense, then transferring a debt at 22% interest to a 0% interest card is just a smart idea. However, if you are going to just keep doing what you have been doing and not change your behaviour and not cut up the credit cards after you pay them off, then it's a waste of time.
their plan works for a broad section of people. Your suggestion is mathematically correct, but credit card companies offer 0% balance transfers because they know the majority of people who do balance transfers end up in MORE debt than before the balance transfer.
We did the transfer to save us money and paid off the debt and now have $0 cc debt. However, I married someone with credit card debt and didn’t have any myself. So I wasn’t really a danger with credit cards and we were able to get on the same page and get them paid off. For most people that have credit card debt it’s a bad idea because it gives them more room for more debt and they’ve already proven themselves untrustworthy with credit cards.
@@jacobkummer2067 based on the statistics, a great majority are indeed in darkness. Being treated like adults is exactly how they were able to dig that deep, dark hole. Dave gives a simple path out of the hole. The plan is simple: don't spend money you don't have. I don't know what city you're in, but I bet the tallest buildings in your city are owned by Chase, Wells Fargo, US Bank or an insurance company. Those buildings exist because financial companies employ PhDs who spend all day figuring out how to get adults to believe going into debt is good for them.
I'm a truck driver and 90% of my meals are out of a mini fridge. Yeah it's not perfect, but it's like $2 for a pretty decent meal versus $15 for some crap from McDonald's. Not to mention it's actually crispy in my air fryer. Sure, I might idle the truck for a minute or two longer to run the equipment, but that's negligible compared to the cost of eating out.
I come from a culture that cooks most but all their food. We cook it and freeze it, and freeze spices. So I highly recommend looking up some tasty easy recipes, I always recommend Korean because you can even make the veggies tasty and it's easy, get a great freezer and warm it up in the air fryer.
I love that! I need a bigger fridge though with a freezer top, beef and other meats aside from chicken go bad really fast in my mini fridge.@@rainbowtravelingyogi
@@n.g.l.That's an interesting point! I'll have to try some Korean foods out! Unfortunately, I grew up on the chicken nugget diet like most American kids over the past 30 years.😅
@@TrickyMickTrucking Lol that's ok when my grandma would visit America I'd ask her to make me hotdogs. But I'd start off with seafood pancakes (add some veggies like spinach too) and Gochujang sauce + soy sauce dipping sauce on the side (low sodium sauce versions still taste amazing). Super easy to make literally make it before hand, freeze it and warm it up in your air fryer and you have tasty omega 3 veggie pancake. My favorite dish is tteokbokki, and it's rice cakes with a sweet and spicy Gochujang sauce with more seafood, some people put a boiled egg in it, and if you add cabbage 😱😱 it'll taste amazing. Tteokbokki is easy to make, frozen rice cakes, Gochujang sauce + honey + soy sauce, frozen seafood, frozen cabbage, bring to boil until its thick and seafood cooks really quick. There's meat dishes as well all super tasty and healthy. Lol I'm hungry already just thinking about it
Hubby just lost his job, and we ate out ALL the time. So, being a proactive & smart person... I knew it was time to watch the food budget. Let me tell you... I have completely forgotten how cheap it is to buy groceries and eat at home!!! Don't tell me groceries are too expensive. We made chicken spaghetti for $12 and will get 6 servings from this one dish... That's $2 per meal/person. People are just lazy and want to gripe....
I save SO much money bargain shopping and making my own meals at home. A number of single people I work with don't shop or cook at all and their eating expenses are ridiculous. They'd rather play videogames with every single moment of their free time instead of investing in their future. When they tell me that they don't have enough money to save for retirement, but they spend $250+ a week eating out and also have $750+ car payments for fancy cars that they barely even use, I just have to shake my head. How they don't see the fallacy is beyond me. You make your own choices, though, and I hope they see the light before it's too late.
The Arizona Tea interview is the exact reason I want to be debt free. To be comfortable enough to fill other’s cups in my overflow as a blessing. 10:32
Agreed. I prefer supporting privately help companies like In-n-out and Arizona tea because they often deliver more value for their customers than competitors while also treating employees better
#1 makes sense to me if you pay off the debt in 18 months AND don't add any additional credit card debt. The transfer fee is usually 3% of the balance transfer so it could be less than $200. #2 is just showing off. I have enough in my checking account to cover everything (I log into all my accounts almost every day) and $10K is in a HYS.
@@hogue3666 from experience, it's pretty consistent across all large/brick and mortar banks in Canada to offer free chequing accounts only if you maintain over 4k in balance. If you want a free chequing account, you need to go with an online only bank
J Waller is saying why He as a "millionaire and businessman" just orders uber eats and does not cook because he values time more. He did not say in that podcast that everyone should do that. Full context.
I've transferred debt to 0% cards multiple times and just like George said, all it did was kick the can down the road. We have to address the behavorial issues in order to fix the problem.
On cooking, there are so many options if your time is that valuable to you, that are cheaper than eating out/ordering in. There's grocery delivery, meal kits (pre made at store), meal kit delivery (that you still cook), pre made meals (either meal delivery or from the store). It doesn't have to be hard, and it doesn't have to be a waste.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
If you don't want to crash and burn, you should seek the advice of a fiduciary counselor when you first start out. Fiduciary-counselors have exclusive information and data paths that are not available to the general public. Understanding the direction of my Fiduciary-counselor Tracy Britt Cool Consulting
You'd go viral and people would call you a genius because the average TT user is only half the intelligence of the average Wal-Mart mobility cart scooter.
Honestly, cooking is fun, therapeutic, healthy, and makes the meal that much more enjoyable, and as a side effect is often cheaper. I don't uber-eat because 1. I don't want to support corporations who basically contribute to elevating the cost of things, 2. even in the pursuit of financial freedom, making time to slow down and enjoy the little pleasures of life is important.
Dude’s just lazy flexing. He can’t be worth that much because dropping “G-wagon” and “Valet” references are him just trying to get you to believe that he’s a baller. Truly wealthy people don’t have to tell you they’re rich. First, because it’s obvious. Second, because they don’t care what you think!
On the cooking front: 1) the cooking is MUCH cheaper than eating out here. 2) I can cook some dishes better than any restaurant around where I live. Like a steak from my stove or grill is WAY better than almost all of the steak places, and the bbq from the smoker blows everything away that is within a 300 mile radius.
I know exactly what you are saying! I have the problem these days that I make better meals than most restaurants that I’m willing to pay for, so it makes going out to eat usually a disappointment. Restaurants that serve better food than me are REALLY EXPENSIVE!!
I saw the ad for this video, and just tuned in to see George go ballistic on stupid and ridiculous money choices! 🤣🤣 and I would never be on tiktok because it is controlled by China. Nothing lost by not being on tiktok.
George works for Ramsey and can't tell the truth about "hot girl debt" which is transferring debt until they hit the wall, marry Poindexter, cheat on Poindexter and spit out Chad's kid, have Poindexter payoff her debt, divorce grape Poindexter and collect cash and prizes for 18ish years, then go on government benefits until they pass.
Transfering credit card debt to a zero interest card is a really smart way to get out of CC debt. You obviously pay a fee, but it’s usually a percent of the debt, and a tiny fraction of what you would have paid in interest. Obviously it’s not good if you use it to just spend more, but for many people it helps them to pay off the debt. My gf got into debt paying for essentials during college, and she could only afford the min payment and like 75% of that was going to interest. Lowering the interest rate a lot allowed her to pay more toward the actual principal. Most people don’t have the ability to just ‘pay the debt off’. That comes from an incredibly privileged POV, obviously people would if they could.
And not to mention, just because you switch to a 0% interest card doesn't mean you not "paying it off" it's a more efficient way TO PAY IT OFF. That girl in the TikTok is right I don't know why he said "nope, just pay it off" like that's not literally what she said.
Always read the fine print. Some "zero interest for X months" cards are zero interest for new purchases only. They apply the full interest rate (or a special balance transfer interest rate) to balance transfers. If a person is not careful, they could pay MORE in interest after the balance transfer.
I think it's just to discourage people from thinking they "paid off their credit card debt" by transferring it over to another one only to rack up more credit card debt in that "freed up" card. I've seen others fall into that mentality many times and just dig a bigger hole. I agree with you though. I did a balance transfer and was able to pay off all of my credit card debt faster, then I cut up all my credits cards because I'm not willing to go through all of that again lol. So it could be worth it if you have the right mentality and discipline.
If you can pay it off in 18 months it makes sense to move it a card where you are paying less interest on it in that time. She wasn't saying to use the card to get into more debt. She said transfer the debt so that it has less interest. I don't know how those cards work, but it made sense as a method for getting out of debt. George Just heard the word "credit card" and assumed it was a bad thing.
@@alinatamashevich3354 If I'm in credit card debit, I probably don't have the means to just pay it off. But if I owe $10k on a 20% interest credit card, I would have to pay probably at least $12k total to pay it off over the course 18 months. Or, I can transfer it to a 0% card, as this girl said, and only pay $10k total. I just saved $2k.
@@alinatamashevich3354or hammer it and pay it off without getting hit with 20% interest every month? Why pay more and make it harder to pay off for the sake of simplicity
My checking account balance is $2000 minimum, and I transfer the rest to my high yield savings account. Then when I make large annual payments, such as property taxes and insurance, I transfer enough back to checking to cover the payment. Then I'm sad that I have to pay taxes and insurance forever. 😥
Transferring a car loan to 0% does not allow you to pay it off in half the time. Car loan interest rates are not that high. What allowed you to pay it off in half the time was your behavior.
When I first started my career, I kept about $1.5K in my checking account and this was decades ago. Never wanted to get close to bouncing a check and this way I never worried that I would.
7:22 I agree with her… $10k in checking is ALOT! Unless you are married with like 3+ kids and a large mortgage and ALL the bills add up to that much then maybe?! But still seems high to me. I’ve noticed when I have more in my checking than I need for my bills etc, then I tend to overspend it cause I’m like “well it’s there, so I’ll spend it” vs just putting it away in savings and forgetting about it.
I understand why George/Ramsey don't agree (because you're opening a credit card), but they should have left it off because it is a good way to get out of credit card if that is what you are going to actually do. I think calling it stupid advice does more damage.
fun fact, Arizona tea really believes in the ethics. if you see arizona tea being sold above the printed price, it means the store is unduly skimming the profit. You can report the location to arizona tea and they will go after the store for cheating.
For a contractor making a mill clean at the end of the year , managing six figure contracts constantly, being on call 50 hours a week , it would make sense to order out a lot… not for a regular person
Or to just anyone making over 50 bucks/h with flexible hours. I prefere work one hour more that cook myself a shitty meal. Let the professionals do what they are best at.
The first take was not good. He said “just pay off the debt” as if people have 20-30k lying around. And he didn’t address if her claim could actually save money in that scenario
It's the easy "credit card mind" that got you into all the consumer debt trouble in the first place, my brotha'. The very last thing you need to be doing is opening up yet another one! C'mon, now! You know better than anyone that you'll just end up maxing-out that one too and the Pelosian cycle will never end.
@@situated4 I have no debt and a single credit card with a $300 limit. Don’t assume people’s situations. I get the mindset is bad and people could make it worse by opening up a new card, but that’s on them. The girl even said debt was bad. But she also said this is a cheaper way to get out of it, which is a true statement. You act like people can’t change their mindset.
@@azeemsiddiqui4764 The math of the take is correct though. If you only have 10k debt at 20% and it will take you a year to pay off, that’s $2,000 extra you’d pay. Whereas if you do what she said, you pay $200 instead. And she still said debt was bad. How is correct math and saying debt is bad an asinine take?
The first girl was actually right. Transfer debt to avoid paying more in interest. Pay it all out. And then you can cut your CC, if you want. I don’t understand how paying more in interest is “smarter”…
It's absolutely the better financial decision... But Dave's "rules" are "no credit cards", so they can't support it even if numerically it makes the most sense.
Ramsey optimizes psychology, not math, which is why they debt-snowball, not debt-avalanche. His logic is that if people were disciplined enough to use credit as a tool, they wouldn’t be in debt and calling him.
That girlie is going to max out CC number one and number two with her “hot girl debt” aka debt contracted to look hot like skincare, clothing, etc. Unless, sorry if I’m a bit cynical, all that debt bags her a glucose guardian who pays her credit cards lol
These credit card companies know exactly what they're doing. They know that people will tell themselves "Great! I'll pay off all of my debt before the 18 months is over and I'll pay 0% interest all that time" but in most cases, what actually happens is that they spend even more and get into even deeper debt. When those 18 months are over, guess what? You didn't read the fine print? Well, too bad, because by not paying it all off by the end of 18 months, you also now owe them 100% of that 18 months worth of interest on top of everything else you owe since transferring your balance. TL;DR - IT'S A TRAP. These credit card companies set it up like this because it makes them the most money.
Because most of the credit cards I looked at that had balance transfers only applied to new purchases not your current transfer, plus you pay a transfer fee. Some credit cards are actual interest free balance transfers for a year or so but most aren't.
I just recently changed my buffer from 1500 to 1k, put the the other 500 in my true emergency fund because I found that I didn’t need that much. Fear kept me housing that in my checking but in reality, I’m debt free, single with no child, and live within my means.
Already from the first part, I was paying $60 / month in fees and I transferred it to a new card for $60. (Around )2K in debt) I tanked $300+ in fees and my 0%interest saved me. I was NOT making over 2k a month at that time. Just to say “pay it off” is horrible. You’ll end up paying so much more in interest
Pretty sure first girl meant to pay the cc debt off before the 0% interest expires and depending on the cc balance it probably works out mathematically but not good for your credit score to be opening and closing cards. You pay more for Uber eats and they eat your fries before you get them. Sigma is a "lone wolf alpha." For my student loans I used the debt avalanche method. Props to you Arizona.
George’s response to the hot girl broke video is an example of why society is messed up. George takes half of her message which he doesn’t like, dismisses the other half which doesn’t fall completely in lockstep with his master Papa Dave, and attacks a topic that she didn’t talk about. In fact, she even says getting into debt is bad. If he would have addressed her entire video in proper context, you’d realize that they’re very much in agreement, and she’s just talking about a singular action to address George’s & Ramsey’s basic point that getting into credit card debt is a bad idea.
Right. She specifically said use the 0% interest break to pay off the debt. Overall I like the Ramsey personalities and content but this whole "pay as much interest on debt as possible" take along with them acting like things are mutually exclusive when they're not is very aggravating. My main pet peeve is when they say to stop 401k contributions and then frame it as either stopping, paying off debt, and then contributing 15% or not stopping, never pay off debt, and only ever contribute the match. No you can still contribute up to the match and still pay off debt.
Yeah I came to the comments for exactly this. I get that they don't trust people enough to not just end up using both credit cards, but to not even ACKNOWLEDGE the original author's stance and then argue the merit of your position that having an additional card is a risk . Her stance was that debt is bad, don't get into it, that she's advocating this as a way out of debt by paying it off faster and that she was even intellectually aware/honest about the risk of the fee and why it still makes sense... George could learn from her about presenting an opposing point to discuss why it doesn't change your position - makes your argument even stronger to have acknowledged those points and then argue why they aren't persuasive. it just shows that George has a religious dogma now about how credit cards are just bad, and he's incapable of seeing past it. I've already blocked the Ramsey channel from my TH-cam, and I guess it might be time to block George, too. I thought he was better than that.
Typically you can just set up a 6 month payment plan for that card with 0% interest... doesn't make sense to open another account to transfer. Also, doesn't make sense to go into that much debt to need 18 months interest free for "hot girl broke" anyways.
George literally said they both agreed that credit card debt is #notcute. The girl’s main hot tip was to open a new credit card, and George explains that he disagrees because that’s just kicking the can down the road. I don’t agree with him, but I also don’t think he dismissed her message.
The interest rate you’re paying while you pay off the credit card debt you rack up, that’s a self punishment you gotta take that teaches you the lesson and stings a bit. But it makes sure you don’t climb back in.
10k is fine in checking if you have large mortgage's. I got 5600 between 2 properties, and my expense burn rate monthly is 8k, id be insane for having less than 10k in there unless I want to hyper transfer money back and forth. Id rather have the 10k and forget about when I get paid. I still have my emergency fund in a HYSA and thats 30k in case I get laid off.
I have a checking account, I calculate the exact amount that goes out each month and leave only what I need in there. The rest goes in savings and I move it to checking if needed
I'm not rich at all. I make crap money. My husband and I together do not make over $115,000 a year. And we have expensive teens. And live in a higher cost of living area But we have tried to be as smart with our finances as possible. I do our investments. Our mortgage is $900/month and the house will be paid off in 2.5 years (we have lived here 18 years). I scrimp and save for years so we can take a vacation once in awhile. It's all worth it though
My monthly expenses are slightly under 5k and that’s what I start each month with in my checking. That way I’m never in fear of making it through the month. Most of my big payments come out at the start of the month anyway so it just makes sense for me. Then at the end of the month anything over 5k gets used to pay off debt. Once the debt is gone the extra will go toward saving/investing.
Cooking is way cheaper than eating out/ uber eats. A $200 grocery bill will feed you for about 2.5 weeks. Eating out will be 2 meals eating at a restaurant
I've played the credit card transfer game- I think it's not bad if you're responsible and got into a bind (hospital bill or something) - if you can't pay it within the next several months, the saving of interest is worth it. Key word: responsible
Arizona sells non priced cans and 99 cent priced cans now. but the wholesale price on each is different. Arizona said if you don't want to sell them for 99 cents you are going to pay more for them from us.
I was wondering if they still had 99-cent cans anywhere. My store stopped with them at least a year ago if not more and the local grocery store where most stuff is cheaper are at a $1.29 now.
Transferring a balance to a zero interest card is a GREAT AND HORRIBLE idea. If indeed you are absolutely going to pay that debt off within 18 months, it’s a great idea. But, the Ramsey method fully recognizes that MOST folks will not pay that debt off within 18 months. They DO just kick the can down the road. They DO keep adding debt until they are broke. They don’t become debt free, they just get more debt. That’s why Ramsey takes a bit of a counter intuitive position on some things. The TikTok woman seems to recognize that her credit card debt is BAD and she seems to admit that she won’t let it happen again. If so, she is an outlier but, if true, she should transfer that debt and DONT take 18 months to pay it off….. do it in 6…. Do it now….. then cancel the old and new cards and use a debit card instead.
That man who doesn't cook is Justin Waller. He's a millionaire who owns a construction company. When you're as busy as he is, time becomes more valuable than money. He can afford Uber Eats every meal. He has also helped me and other men become more successful. I've doubled my income and paid off all of my debt by taking Waller's advice.
George first reaction...kinda made the tik Tok girl look smart. Both wanted to pay down the credit card debt. She said move it to a zero balance…they pay off monthly. His plan…pay 22% interest each month whilst paying down debt? How to make pretty blonde girl look smart.
I mean the second guy is right if your hours are really worth that much, but who is in this position? There is a reason really succesful people have private chefs and house keeping and a gardener and a chauffeur and so on and so on. But for the average person your advice is valid, shop smart and cook smart to save money and time.
I like to keep 2 months of expenses in my checking which is about 13k. I get 4%APY in my checking so not super encouraged to move to HYS. I put the rest of my emergency fund in HYS.
George is not a classically trained money expert but perhaps that is why his advice is so effective. It’s simple and right- get out of debt and stop thinking there’s something called hot girl debt. Hot girl debt is the same as miserable debt. Put the Lipstick on a pig…but it’s still a dang pig 🐖
Great video George! What do you think of full coverage insurance vs liability insurance? If a car is paid off, it doesn’t require full coverage insurance. It would help decrease expenses for the budget.
That is what we in the insurance industry call "self-insuring". You are taking on the risk of paying out of pocket for repairing/replacing your vehicle in the case of an accident instead of transferring that risk to an insurance company by getting full coverage. It's up to you to decide if your budget can handle having to buy a vehicle if, say, you pull out of your driveway and someone smacks you with their car. Most people can't bear that expense, so unless they have a beater or access to another vehicle for cheap, they will transfer that risk to an insurance company via full coverage collision insurance.
JWaller is actually from humble beginnings. He clarifies that take out thing later in that interview and says if you’re not making 100k + a month living in a penthouse this isn’t for you. If you’re not making more money than the time that it would take you to cook your own meal that this isn’t for you. Only when you can make more money with that time you would have spent shopping cooking cleaning etc does it financially make sense.
Best advice my parents gave me was to pay as you go. I have had loans & credit cards. I bought my first place in the 90's. I graduated & my salary increased by $15K a year. Another 2 more years & I had my MBA. My salary then doubled again. I never once bought the fancy coffees to show off. I was debt free as my employer paid for my university fees. Best advice from my parents was to live a better life but do not go crazy with the new salary increase. I keep to a budget of $50 a day & this includes my lunch, fuel & discretionary funds. I empty my pockets of all change - keeping only $3.00 at the start of the day. I save the coins into another wallet & at the weekend place that money onto a power, gas or water bills. It may only be a few hundred onto my bills but it means they are paid - on time.
Keeping that much cash in my checking account just isn’t normal for us. We use that account to pay bills + make transactions. We keep the minimum there. All of the funds are in the high yield savings and easy/quick to access if we have an emergency.
I hate how they throw around the 18-24 month average. The reality is that data is biased by people who select Dave’s plan to get out of debt. If it were applied universally, that number could be much higher. The people who do the best with Dave’s plan tend to be relatively good earners (relative to cost of living of wherever they live) and previously bad with money. Those folks do amazing once they clean up their habits.
Both of my kids saved up $20,000 while in high school. Half of it went into their Roth IRAs and the other half into their savings accounts. Both will graduate from college with zero debt and have savings.
If you’ve got a $5k balance on a card, at 22% that’s $1,100 of interest & fees that’ll significantly slow down repayment. If you find an 18 month no interest transfer option and you KNOW you can pay it off in 18 months. Do it. It’ll save you thousands.
Honestly, balance transfers were the only way I paid down my debt. 0% interest for 18 months. That was about 12 years ago and haven’t had credit card debt since. You just have to have the self control to not use the new card.
I keep my emergency fund in a separate checking account (which of course has a separate card) I treat that card like my emergency credit card, I even made sure to order a different color card so I don't use it accidentally. The point of the emergency fund isn't to make money off that money, it's to be immediately available in an emergency.
Justin Waller has so much money (second clip) was not giving financial advice. He’s a multimillionaire who started with nothing and worked his way up in construction. The title was clickbait and out of context. He doesn’t cook because he makes so much money it’s possible. He could hire a chef and no one would bat an eye. The dude is always moving around for various projects and doesn’t even have a primary residence/home that he owns so of course cooking is difficult. Did he exaggerate and mess around a bit? Yeah. Watch him on the iced coffee hour where that clip was made. Interesting interview
Exactly. Getting groceries and cooking can take up to 90 minutes. In that 90 minutes, he can make a millionaire dollars. That 90 minutes is more valuable so he just pays the $40 for Uber Eats so he can keep working.
Transferring your debt to a zero-interest card can be worth it as long as you change your spending habits. If you keep doing whatever it was you were doing that built up your credit card debt in the first place you're just digging yourself deeper into a hole. If you change and really utilize the benefits of the 0% card it can be a great help.
5 months expenses in HYSA, 1 month in a standard savings account is my Emergency fund. I keep 1 to 4 grand in checking just depending on when I got paid and when bills are due.
Regarding the amount of money in checking accounts -- speaking of someone who HAS had their paycheck not arrive during some chaos at my employer, AND someone who is paid only monthly now - I don't like if my checking account balance doesn't at least cover a full month's expenses. My bank's normal savings doesn't pay much more than my checking interest, so for me my high-yield savings is an inter-bank transfer away - I'm not messing about with overdraft fee risk just to squeeze an extra couple percent out of a few thousand dollars.
8:08 I have a feature on my checking account that makes sure I can make my big payments by moving money from savings to checking if I get below a certain amount and all the money left in my checking account before my paycheck lands goes to savings as well
When I was in my 20s and had too much dumb debt, the 0% balance transfer was very helpful for the debt snowball. So I wouldn't dismiss it as an option entirely, but I found it takes discipline to not just build up all new debt on the new card. I slipped up a couple times and used it. Shame. It's a trap for the undisciplined. Now debt free except the mortgage 🎉
10:50 George, I love the Ramsey plan and Ramsey content. Read all your books and listen daily. Just would really love to see some of the streams be more affordable. I’m in baby step 4 and was really looking forward to Dave’s investment live stream, but being frugal and “gazelle intense” I could not justify spending $200 for a 2 night live stream. I’m not saying the advice wouldn’t be great, just struggled to justify the cost into my budget. Thanks, and keep up the great work!
I don’t know who he is but to say he shouldn’t cook because he has money doesn’t make much sense to me unless he uses every second of his day to make more money and cooking would cut into his money making time.
@@bigshoe84ify The process of cooking is wasting time he could be using to produce money or enjoying the money he already had way too much of the spend in a lifetime. The better argument would be to hire a chef. A chef could probably supply better food at a better price.
My dad financed his retirement by transferring his debts from one credit card to another and making minimum payments. Sure he died with a mountain of debt, but that debt died with him.
I keep my checking at about $1000. My wife's checking account builds up, and when it hits $5k+ (every 6-8 weeks), she transfers all but $1k to our joint savings.
I transfered to a 0 percent card and then paid everything off in 10 months. I dont get why what i did was wrong. I saved a ton of money. Now im debt free with an emergancy fund
YOU did it right
It's not wrong IF you pay it off. It'll save you a mass amount of money in interest payments. Most people don't pay it off and all that interest you didn't pay suddenly gets tacked on. They make money and you're in even deeper. Just don't be that guy.
You didn’t do anything wrong. The key was that you actually DID pay it off. The Ramsey mantra recognizes that the vast majority of folks will do the transfer and STILL NOT PAY OFF THE DEBT. So, they say: “don’t do it”. The math is on your side and since you also brought the personal dedication and focus to solve the problem (that most people don’t), you did everything right. Ramsey would now tell you to just cancel the new cards (and the old one) so that you don’t fall into the trap again. And that is good advice.
@@Dave-my1we yep paid it off in 10 months and had 18 months to do it
@@Dave-my1we i did cancel them all by the way. I have an emergancy fund and am happy investing my 15 percent paying off my house.
If someone makes the statement that they "feel like a millionaire" you can guarantee they're going to give you terrible financial advice.
How do you even "feel" it? We have a 7 figure net worth (with 2 mortgages and one car loan) and I am not feeling it.. You would think that in order to feel it, you would be drinking expensive champagne, etc. (which I can buy but I don't think that it is smart and I feel guilty).
If you are talking about the NY “hot girl” from the first video, her advice was pretty good. If you have high interest debt, move it to a 0% credit card and actually work on paying that debt off.
The sad part if people probably listen to the hot girl debt advice
@@Artbynbru Wasn’t hot girl sent advice to use 0% balance transfers to help pay off credit card debt? How is that bad advice?
@@barnabusdoyle4930 it would only work if people change their behavior, but you know the majority don’t. They now get 2 credit cards and can spend more. I feel like it needs to explain the importance of changing behaviors and also getting slapped with late fees and high interests if not paid on time. There is just more to it. People can just take that information and get themselves into more trouble.
As many have already said and I agree with...a transfer to a 0% credit id absolutely a great idea IF the person focuses on paying the transferred debt off and not accruing any additional charges on the old or new card. This takes discipline...and those that have it will save tons in interest and pay the debt off faster. I did a balance transfer a few months ago and have paid 3500 at 0% towards a debt that had 23% interest attached....that is a WIN.
The cool thing is, you don’t have to pay it off faster. You just have to pay it off within the 0% interest window. If you have 18 months to pay it off, use all 18 months because 100% of it goes toward the principal. Any extra money you don’t need to put towards it can go towards building an emergency fund.
You can basically kill 2 birds with 1 stone.
Yep. Great idea for Tuition when you can’t work
Sure but most people don’t have such discipline. Let’s not beat around the bush here this isn’t targeted at people who can finesse their finances this is targeted to people who will not pay it back on time. Whether that’s because they are too irresponsible or have a tough situation.
@@mikeyman1974 in spite of what Ramsey says, most people DO have enough discipline to stay to out of credit card debt. Less than half of Americans carry a debt on their credit cards.
Credit cards are bad, but I don’t get why Ramsey and his people get hysterical about it and stretch out the actual numbers. You can easily make an anti-credit card argument without lying about it.
THANK YOU. that’s what I did and it worked great. Oh also I don’t use that card any more because Citi sucks
Love the advice on this channel, but if you're serious about getting out of debt, and you're gonna be gazel intense, then transferring a debt at 22% interest to a 0% interest card is just a smart idea. However, if you are going to just keep doing what you have been doing and not change your behaviour and not cut up the credit cards after you pay them off, then it's a waste of time.
Shh... Ramsey personalities are much more interested in you doing their plan perfectly than they are about actually making smart decisions.
their plan works for a broad section of people. Your suggestion is mathematically correct, but credit card companies offer 0% balance transfers because they know the majority of people who do balance transfers end up in MORE debt than before the balance transfer.
We did the transfer to save us money and paid off the debt and now have $0 cc debt.
However, I married someone with credit card debt and didn’t have any myself.
So I wasn’t really a danger with credit cards and we were able to get on the same page and get them paid off.
For most people that have credit card debt it’s a bad idea because it gives them more room for more debt and they’ve already proven themselves untrustworthy with credit cards.
@@Allan_A Their plan assumes everyone has their head up their butt. Better approach is to treat people like the adults that they are.
@@jacobkummer2067 based on the statistics, a great majority are indeed in darkness. Being treated like adults is exactly how they were able to dig that deep, dark hole. Dave gives a simple path out of the hole.
The plan is simple: don't spend money you don't have. I don't know what city you're in, but I bet the tallest buildings in your city are owned by Chase, Wells Fargo, US Bank or an insurance company.
Those buildings exist because financial companies employ PhDs who spend all day figuring out how to get adults to believe going into debt is good for them.
Is that guy washing dishes with dial hand soap....😂
He don't seem too bright...
It's got stuff plants crave!
Stupid people are everywhere
I saw that too😂
But it’s only 8 dollars 😊
I'm a truck driver and 90% of my meals are out of a mini fridge. Yeah it's not perfect, but it's like $2 for a pretty decent meal versus $15 for some crap from McDonald's. Not to mention it's actually crispy in my air fryer. Sure, I might idle the truck for a minute or two longer to run the equipment, but that's negligible compared to the cost of eating out.
My cousin drives a truck and she also prepares all her food. ✨
I come from a culture that cooks most but all their food. We cook it and freeze it, and freeze spices. So I highly recommend looking up some tasty easy recipes, I always recommend Korean because you can even make the veggies tasty and it's easy, get a great freezer and warm it up in the air fryer.
I love that! I need a bigger fridge though with a freezer top, beef and other meats aside from chicken go bad really fast in my mini fridge.@@rainbowtravelingyogi
@@n.g.l.That's an interesting point! I'll have to try some Korean foods out! Unfortunately, I grew up on the chicken nugget diet like most American kids over the past 30 years.😅
@@TrickyMickTrucking Lol that's ok when my grandma would visit America I'd ask her to make me hotdogs. But I'd start off with seafood pancakes (add some veggies like spinach too) and Gochujang sauce + soy sauce dipping sauce on the side (low sodium sauce versions still taste amazing). Super easy to make literally make it before hand, freeze it and warm it up in your air fryer and you have tasty omega 3 veggie pancake. My favorite dish is tteokbokki, and it's rice cakes with a sweet and spicy Gochujang sauce with more seafood, some people put a boiled egg in it, and if you add cabbage 😱😱 it'll taste amazing. Tteokbokki is easy to make, frozen rice cakes, Gochujang sauce + honey + soy sauce, frozen seafood, frozen cabbage, bring to boil until its thick and seafood cooks really quick. There's meat dishes as well all super tasty and healthy. Lol I'm hungry already just thinking about it
Hubby just lost his job, and we ate out ALL the time. So, being a proactive & smart person... I knew it was time to watch the food budget. Let me tell you... I have completely forgotten how cheap it is to buy groceries and eat at home!!! Don't tell me groceries are too expensive. We made chicken spaghetti for $12 and will get 6 servings from this one dish... That's $2 per meal/person. People are just lazy and want to gripe....
I save SO much money bargain shopping and making my own meals at home. A number of single people I work with don't shop or cook at all and their eating expenses are ridiculous. They'd rather play videogames with every single moment of their free time instead of investing in their future. When they tell me that they don't have enough money to save for retirement, but they spend $250+ a week eating out and also have $750+ car payments for fancy cars that they barely even use, I just have to shake my head. How they don't see the fallacy is beyond me. You make your own choices, though, and I hope they see the light before it's too late.
The Arizona Tea interview is the exact reason I want to be debt free. To be comfortable enough to fill other’s cups in my overflow as a blessing. 10:32
I’m finally debt free and I put out free drinks for the delivery people in a little front porch fridge
Agreed. I prefer supporting privately help companies like In-n-out and Arizona tea because they often deliver more value for their customers than competitors while also treating employees better
#1 makes sense to me if you pay off the debt in 18 months AND don't add any additional credit card debt. The transfer fee is usually 3% of the balance transfer so it could be less than $200. #2 is just showing off. I have enough in my checking account to cover everything (I log into all my accounts almost every day) and $10K is in a HYS.
The reason I keep 4k in my checking account is that is the amount that you get your $20 monthly account fee refunded in Canada.
Is this some sort of national thing in Canada? It sounds like you need a different bank.
@hogue3666 we basically have an oligopoly, choose one of 5 banks that are all the same. 2 newer banks are trying to disrupt.
@@hogue3666 from experience, it's pretty consistent across all large/brick and mortar banks in Canada to offer free chequing accounts only if you maintain over 4k in balance. If you want a free chequing account, you need to go with an online only bank
I don’t know who edits your videos but we share a sense of humor and I laugh way to hard at these videos
J Waller is saying why He as a "millionaire and businessman" just orders uber eats and does not cook because he values time more. He did not say in that podcast that everyone should do that. Full context.
@ronneltiongco5781 Full context, he's a moron.
I've transferred debt to 0% cards multiple times and just like George said, all it did was kick the can down the road. We have to address the behavorial issues in order to fix the problem.
10000%
I agree with him but I used mine to save me and I cut it up after I was done with it.
On cooking, there are so many options if your time is that valuable to you, that are cheaper than eating out/ordering in. There's grocery delivery, meal kits (pre made at store), meal kit delivery (that you still cook), pre made meals (either meal delivery or from the store). It doesn't have to be hard, and it doesn't have to be a waste.
3:57 Im literally watching this while I cook! 😂😂😂😂😂 Broke Girls hit the like button 👍
We’re not broke, we’re smart!
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
If you don't want to crash and burn, you should seek the advice of a fiduciary counselor when you first start out. Fiduciary-counselors have exclusive information and data paths that are not available to the general public. Understanding the direction of my Fiduciary-counselor Tracy Britt Cool Consulting
What if I went on TikTok and just laid out exactly how to do a Ponzi scheme and called it a "finance hack"?
Giza, home of the pyramid scheme😂
You'd go viral and people would call you a genius because the average TT user is only half the intelligence of the average Wal-Mart mobility cart scooter.
Tiktok would promote it, tiktok is q chinese psyop
Honestly, cooking is fun, therapeutic, healthy, and makes the meal that much more enjoyable, and as a side effect is often cheaper. I don't uber-eat because 1. I don't want to support corporations who basically contribute to elevating the cost of things, 2. even in the pursuit of financial freedom, making time to slow down and enjoy the little pleasures of life is important.
Oh my gosh. The Uber Eats Bro. I can’t stop laughing. One of the funniest things I’ve seen in days. 😂
You mean the second one? That guy must be trolling. And if he was actually rich, he'd have employees to buy food and cook meals 😂
Dude’s just lazy flexing.
He can’t be worth that much because dropping “G-wagon” and “Valet” references are him just trying to get you to believe that he’s a baller.
Truly wealthy people don’t have to tell you they’re rich.
First, because it’s obvious.
Second, because they don’t care what you think!
@jochenkraus7016 He's famous for being one of these alpha male self made guys, but everything I see from him is a load of shit. 😂
He coulda just said he didn't know how to cook 😅
On the cooking front: 1) the cooking is MUCH cheaper than eating out here. 2) I can cook some dishes better than any restaurant around where I live. Like a steak from my stove or grill is WAY better than almost all of the steak places, and the bbq from the smoker blows everything away that is within a 300 mile radius.
That's why we cook at home! It tastes better. Restaurant food is meh in my area at all price points.
I know exactly what you are saying!
I have the problem these days that I make better meals than most restaurants that I’m willing to pay for, so it makes going out to eat usually a disappointment.
Restaurants that serve better food than me are REALLY EXPENSIVE!!
Damn right. You can't buy ribs or brisket anywhere near as good as I can smoke in my backyard unless you want to take a 14 hour drive to the south.
I always keep a buffer in my checking account equal to my next autopay mortgage payment.
Same
I saw the ad for this video, and just tuned in to see George go ballistic on stupid and ridiculous money choices! 🤣🤣 and I would never be on tiktok because it is controlled by China. Nothing lost by not being on tiktok.
Um 3% interest for a year paid up front as a transfer fee is a helluva lot better than 12-24% interest, Dude.
MOST of the time, it applies only to NEW purchases.
@@azeemsiddiqui4764 a balance transfer credit card typically has the small fee and the number of months at 0% for the transfered debt.
Dude won't cook but buys a 200k G'wagon. 🙄 priorities NOT inline.
Balance transfers is a great move
1:40 Obviously!
George works for Ramsey and can't tell the truth about "hot girl debt" which is transferring debt until they hit the wall, marry Poindexter, cheat on Poindexter and spit out Chad's kid, have Poindexter payoff her debt, divorce grape Poindexter and collect cash and prizes for 18ish years, then go on government benefits until they pass.
Transfering credit card debt to a zero interest card is a really smart way to get out of CC debt. You obviously pay a fee, but it’s usually a percent of the debt, and a tiny fraction of what you would have paid in interest. Obviously it’s not good if you use it to just spend more, but for many people it helps them to pay off the debt. My gf got into debt paying for essentials during college, and she could only afford the min payment and like 75% of that was going to interest. Lowering the interest rate a lot allowed her to pay more toward the actual principal. Most people don’t have the ability to just ‘pay the debt off’. That comes from an incredibly privileged POV, obviously people would if they could.
That's correct. 3% vs 30% is a rather large difference.
And not to mention, just because you switch to a 0% interest card doesn't mean you not "paying it off" it's a more efficient way TO PAY IT OFF. That girl in the TikTok is right I don't know why he said "nope, just pay it off" like that's not literally what she said.
Always read the fine print. Some "zero interest for X months" cards are zero interest for new purchases only. They apply the full interest rate (or a special balance transfer interest rate) to balance transfers. If a person is not careful, they could pay MORE in interest after the balance transfer.
I think it's just to discourage people from thinking they "paid off their credit card debt" by transferring it over to another one only to rack up more credit card debt in that "freed up" card. I've seen others fall into that mentality many times and just dig a bigger hole. I agree with you though. I did a balance transfer and was able to pay off all of my credit card debt faster, then I cut up all my credits cards because I'm not willing to go through all of that again lol. So it could be worth it if you have the right mentality and discipline.
@@misterskippy2u I was just about to say that. Most balance transfers are not zero interest and there is probably a fee to transfer.
Always appreciate these videos as reassurance that I'm never going to be a bum like these people
If you can pay it off in 18 months it makes sense to move it a card where you are paying less interest on it in that time. She wasn't saying to use the card to get into more debt. She said transfer the debt so that it has less interest. I don't know how those cards work, but it made sense as a method for getting out of debt. George Just heard the word "credit card" and assumed it was a bad thing.
Nope, why do something silly as that, just hammer it and pay it off.
@@alinatamashevich3354 why should I hammer a 25% interest debt if I can hammer a 0% interest debt?
@@spencergambrell7819 if you can pay it off in 18 months, why complicate the situation? Just pay it off.
@@alinatamashevich3354 If I'm in credit card debit, I probably don't have the means to just pay it off. But if I owe $10k on a 20% interest credit card, I would have to pay probably at least $12k total to pay it off over the course 18 months. Or, I can transfer it to a 0% card, as this girl said, and only pay $10k total. I just saved $2k.
@@alinatamashevich3354or hammer it and pay it off without getting hit with 20% interest every month? Why pay more and make it harder to pay off for the sake of simplicity
My checking account balance is $2000 minimum, and I transfer the rest to my high yield savings account. Then when I make large annual payments, such as property taxes and insurance, I transfer enough back to checking to cover the payment. Then I'm sad that I have to pay taxes and insurance forever. 😥
Transferring my car loan debt to zero interest cards saved me 5k in interest and allowed me to pay my car off in half the time
Transferring a car loan to 0% does not allow you to pay it off in half the time. Car loan interest rates are not that high. What allowed you to pay it off in half the time was your behavior.
@@Tj_McQueen lol clown. Yes half the time the payments were all principle. And I increased my payments. 🤡
1st tip was legit good if you’ve already changed your thinking on spending behavior and debt
When I first started my career, I kept about $1.5K in my checking account and this was decades ago. Never wanted to get close to bouncing a check and this way I never worried that I would.
7:22 I agree with her… $10k in checking is ALOT! Unless you are married with like 3+ kids and a large mortgage and ALL the bills add up to that much then maybe?! But still seems high to me. I’ve noticed when I have more in my checking than I need for my bills etc, then I tend to overspend it cause I’m like “well it’s there, so I’ll spend it” vs just putting it away in savings and forgetting about it.
Mathematically, the first tiktok was good advice and will save you a lot of money if you follow through.
Emotionally it's wrong. Money is a lot about emotion and selfcontrol. They offer it because they make money with it.
@@EatEatyso, because of emotions they should just keep paying off their debt with 22+% interest, instead of paying off debt with 0% interest?
@@EatEatybecause you are broke
She's a moron.
I understand why George/Ramsey don't agree (because you're opening a credit card), but they should have left it off because it is a good way to get out of credit card if that is what you are going to actually do. I think calling it stupid advice does more damage.
You're debt free George so set the example and be generous over this way towards me 🤣🤣
fun fact, Arizona tea really believes in the ethics. if you see arizona tea being sold above the printed price, it means the store is unduly skimming the profit. You can report the location to arizona tea and they will go after the store for cheating.
For a contractor making a mill clean at the end of the year , managing six figure contracts constantly, being on call 50 hours a week , it would make sense to order out a lot… not for a regular person
Or have a wife who cooks. 😂
Or to just anyone making over 50 bucks/h with flexible hours. I prefere work one hour more that cook myself a shitty meal. Let the professionals do what they are best at.
The first take was not good. He said “just pay off the debt” as if people have 20-30k lying around. And he didn’t address if her claim could actually save money in that scenario
It's the easy "credit card mind" that got you into all the consumer debt trouble in the first place, my brotha'. The very last thing you need to be doing is opening up yet another one! C'mon, now! You know better than anyone that you'll just end up maxing-out that one too and the Pelosian cycle will never end.
@@situated4 I have no debt and a single credit card with a $300 limit. Don’t assume people’s situations. I get the mindset is bad and people could make it worse by opening up a new card, but that’s on them. The girl even said debt was bad. But she also said this is a cheaper way to get out of it, which is a true statement. You act like people can’t change their mindset.
@@JaredEast1 Most Americans CAN'T. That's why most live paycheck to paycheck. This take was just asinine.
@@azeemsiddiqui4764 The math of the take is correct though. If you only have 10k debt at 20% and it will take you a year to pay off, that’s $2,000 extra you’d pay. Whereas if you do what she said, you pay $200 instead. And she still said debt was bad. How is correct math and saying debt is bad an asinine take?
@@situated4”Hurr Durr you should choose to pay a higher interest rate cause psychology” you’re just lighting money on fire bro 😂😂😂
I love these videos! keep doing them bc theyre great!!
My minimum checking balance is $2k. When my register shows $0 - then I have $2k left. Mini emergency fund.
That’s actually a good idea!
Exactly…$2000 is your zero….I do the same thing.
The first girl was actually right. Transfer debt to avoid paying more in interest. Pay it all out. And then you can cut your CC, if you want.
I don’t understand how paying more in interest is “smarter”…
It's absolutely the better financial decision... But Dave's "rules" are "no credit cards", so they can't support it even if numerically it makes the most sense.
Ramsey optimizes psychology, not math, which is why they debt-snowball, not debt-avalanche. His logic is that if people were disciplined enough to use credit as a tool, they wouldn’t be in debt and calling him.
That girlie is going to max out CC number one and number two with her “hot girl debt” aka debt contracted to look hot like skincare, clothing, etc. Unless, sorry if I’m a bit cynical, all that debt bags her a glucose guardian who pays her credit cards lol
These credit card companies know exactly what they're doing. They know that people will tell themselves "Great! I'll pay off all of my debt before the 18 months is over and I'll pay 0% interest all that time" but in most cases, what actually happens is that they spend even more and get into even deeper debt.
When those 18 months are over, guess what? You didn't read the fine print? Well, too bad, because by not paying it all off by the end of 18 months, you also now owe them 100% of that 18 months worth of interest on top of everything else you owe since transferring your balance.
TL;DR - IT'S A TRAP. These credit card companies set it up like this because it makes them the most money.
Because most of the credit cards I looked at that had balance transfers only applied to new purchases not your current transfer, plus you pay a transfer fee. Some credit cards are actual interest free balance transfers for a year or so but most aren't.
I just recently changed my buffer from 1500 to 1k, put the the other 500 in my true emergency fund because I found that I didn’t need that much. Fear kept me housing that in my checking but in reality, I’m debt free, single with no child, and live within my means.
🤣 you’re hilarious. Thank u for the financial laughs
Already from the first part, I was paying $60 / month in fees and I transferred it to a new card for $60. (Around )2K in debt) I tanked $300+ in fees and my 0%interest saved me. I was NOT making over 2k a month at that time. Just to say “pay it off” is horrible. You’ll end up paying so much more in interest
I did not pay debt smallest to largest instead. I paid off a vehicle loan because it freed up the most cash margin in my budget
Pretty sure first girl meant to pay the cc debt off before the 0% interest expires and depending on the cc balance it probably works out mathematically but not good for your credit score to be opening and closing cards. You pay more for Uber eats and they eat your fries before you get them. Sigma is a "lone wolf alpha." For my student loans I used the debt avalanche method. Props to you Arizona.
George’s response to the hot girl broke video is an example of why society is messed up. George takes half of her message which he doesn’t like, dismisses the other half which doesn’t fall completely in lockstep with his master Papa Dave, and attacks a topic that she didn’t talk about. In fact, she even says getting into debt is bad. If he would have addressed her entire video in proper context, you’d realize that they’re very much in agreement, and she’s just talking about a singular action to address George’s & Ramsey’s basic point that getting into credit card debt is a bad idea.
Right. She specifically said use the 0% interest break to pay off the debt. Overall I like the Ramsey personalities and content but this whole "pay as much interest on debt as possible" take along with them acting like things are mutually exclusive when they're not is very aggravating.
My main pet peeve is when they say to stop 401k contributions and then frame it as either stopping, paying off debt, and then contributing 15% or not stopping, never pay off debt, and only ever contribute the match. No you can still contribute up to the match and still pay off debt.
Yeah exactly. And the way he said to “just pay off the debt” as if people have 20-30k lying around
Yeah I came to the comments for exactly this. I get that they don't trust people enough to not just end up using both credit cards, but to not even ACKNOWLEDGE the original author's stance and then argue the merit of your position that having an additional card is a risk . Her stance was that debt is bad, don't get into it, that she's advocating this as a way out of debt by paying it off faster and that she was even intellectually aware/honest about the risk of the fee and why it still makes sense... George could learn from her about presenting an opposing point to discuss why it doesn't change your position - makes your argument even stronger to have acknowledged those points and then argue why they aren't persuasive. it just shows that George has a religious dogma now about how credit cards are just bad, and he's incapable of seeing past it. I've already blocked the Ramsey channel from my TH-cam, and I guess it might be time to block George, too. I thought he was better than that.
Typically you can just set up a 6 month payment plan for that card with 0% interest... doesn't make sense to open another account to transfer. Also, doesn't make sense to go into that much debt to need 18 months interest free for "hot girl broke" anyways.
George literally said they both agreed that credit card debt is #notcute. The girl’s main hot tip was to open a new credit card, and George explains that he disagrees because that’s just kicking the can down the road. I don’t agree with him, but I also don’t think he dismissed her message.
Bradley on a Budget is an excellent channel for frugal living.
The interest rate you’re paying while you pay off the credit card debt you rack up, that’s a self punishment you gotta take that teaches you the lesson and stings a bit. But it makes sure you don’t climb back in.
10k is fine in checking if you have large mortgage's. I got 5600 between 2 properties, and my expense burn rate monthly is 8k, id be insane for having less than 10k in there unless I want to hyper transfer money back and forth. Id rather have the 10k and forget about when I get paid. I still have my emergency fund in a HYSA and thats 30k in case I get laid off.
I can just picture that guy talking about cooking is for broke guys, saying after his spiel “and that brings up to our sponsor today, Uber Eats.” 😂
I relate with that checking account video 😅 like I don't have that much self control with my checking account lol
I have a checking account, I calculate the exact amount that goes out each month and leave only what I need in there. The rest goes in savings and I move it to checking if needed
Same! I only leave $150 for gas, the rest is cash or savings accounts (gave those dollars jobs)!
I'm not rich at all. I make crap money. My husband and I together do not make over $115,000 a year. And we have expensive teens. And live in a higher cost of living area
But we have tried to be as smart with our finances as possible. I do our investments. Our mortgage is $900/month and the house will be paid off in 2.5 years (we have lived here 18 years). I scrimp and save for years so we can take a vacation once in awhile. It's all worth it though
What's the most valued item of our age? Data. Keep making fun of ppl for not wanting to be tracked. That's going to make you a bunch of friends.
The way the first two spoke, it made sense right at that point
My monthly expenses are slightly under 5k and that’s what I start each month with in my checking. That way I’m never in fear of making it through the month. Most of my big payments come out at the start of the month anyway so it just makes sense for me. Then at the end of the month anything over 5k gets used to pay off debt. Once the debt is gone the extra will go toward saving/investing.
Don't want student debt...DON'T TAKE OUT THE LOANS TO GO TO SCHOOL. It's pretty simple. COLLEGE IS NOT THE ONLY AVENUE TO SUCCESS.
Cooking is way cheaper than eating out/ uber eats. A $200 grocery bill will feed you for about 2.5 weeks. Eating out will be 2 meals eating at a restaurant
I've played the credit card transfer game- I think it's not bad if you're responsible and got into a bind (hospital bill or something) - if you can't pay it within the next several months, the saving of interest is worth it. Key word: responsible
Arizona sells non priced cans and 99 cent priced cans now. but the wholesale price on each is different. Arizona said if you don't want to sell them for 99 cents you are going to pay more for them from us.
I was wondering if they still had 99-cent cans anywhere. My store stopped with them at least a year ago if not more and the local grocery store where most stuff is cheaper are at a $1.29 now.
That guy that doesn't want to cook doesn't even need a kitchen. All he needs is a dining room for all his purchased food. Skip the whole kitchen.
Transferring a balance to a zero interest card is a GREAT AND HORRIBLE idea. If indeed you are absolutely going to pay that debt off within 18 months, it’s a great idea. But, the Ramsey method fully recognizes that MOST folks will not pay that debt off within 18 months. They DO just kick the can down the road. They DO keep adding debt until they are broke. They don’t become debt free, they just get more debt. That’s why Ramsey takes a bit of a counter intuitive position on some things. The TikTok woman seems to recognize that her credit card debt is BAD and she seems to admit that she won’t let it happen again. If so, she is an outlier but, if true, she should transfer that debt and DONT take 18 months to pay it off….. do it in 6…. Do it now….. then cancel the old and new cards and use a debit card instead.
That man who doesn't cook is Justin Waller. He's a millionaire who owns a construction company. When you're as busy as he is, time becomes more valuable than money. He can afford Uber Eats every meal. He has also helped me and other men become more successful. I've doubled my income and paid off all of my debt by taking Waller's advice.
George first reaction...kinda made the tik Tok girl look smart. Both wanted to pay down the credit card debt. She said move it to a zero balance…they pay off monthly. His plan…pay 22% interest each month whilst paying down debt? How to make pretty blonde girl look smart.
I really don’t like using other peoples downfalls to lift myself up but these are the type of things that let me know I’m not doing so bad after all
You’re good and all George but I watch your videos for you editor. They are hilarious.
Agreed. Our editors are the best!!
I mean the second guy is right if your hours are really worth that much, but who is in this position? There is a reason really succesful people have private chefs and house keeping and a gardener and a chauffeur and so on and so on. But for the average person your advice is valid, shop smart and cook smart to save money and time.
I like to keep 2 months of expenses in my checking which is about 13k. I get 4%APY in my checking so not super encouraged to move to HYS. I put the rest of my emergency fund in HYS.
“this is so sigma”
George: “idk, is that a fraternity?”
I spat my drink out 😂
George is now the sigma male
So funny 😂
George is not a classically trained money expert but perhaps that is why his advice is so effective. It’s simple and right- get out of debt and stop thinking there’s something called hot girl debt. Hot girl debt is the same as miserable debt. Put the Lipstick on a pig…but it’s still a dang pig 🐖
What exactly is a "classically" trained money expert? Where does one acquire such a degree? Please advise.
Great video George! What do you think of full coverage insurance vs liability insurance? If a car is paid off, it doesn’t require full coverage insurance. It would help decrease expenses for the budget.
That is what we in the insurance industry call "self-insuring". You are taking on the risk of paying out of pocket for repairing/replacing your vehicle in the case of an accident instead of transferring that risk to an insurance company by getting full coverage.
It's up to you to decide if your budget can handle having to buy a vehicle if, say, you pull out of your driveway and someone smacks you with their car. Most people can't bear that expense, so unless they have a beater or access to another vehicle for cheap, they will transfer that risk to an insurance company via full coverage collision insurance.
JWaller is actually from humble beginnings. He clarifies that take out thing later in that interview and says if you’re not making 100k + a month living in a penthouse this isn’t for you. If you’re not making more money than the time that it would take you to cook your own meal that this isn’t for you. Only when you can make more money with that time you would have spent shopping cooking cleaning etc does it financially make sense.
Use a credit union where you get some interest on your emergency fund. It will allow you to continue paying obligations until your emergency ends.
Best advice my parents gave me was to pay as you go. I have had loans & credit cards. I bought my first place in the 90's. I graduated & my salary increased by $15K a year. Another 2 more years & I had my MBA. My salary then doubled again. I never once bought the fancy coffees to show off. I was debt free as my employer paid for my university fees. Best advice from my parents was to live a better life but do not go crazy with the new salary increase. I keep to a budget of $50 a day & this includes my lunch, fuel & discretionary funds. I empty my pockets of all change - keeping only $3.00 at the start of the day. I save the coins into another wallet & at the weekend place that money onto a power, gas or water bills. It may only be a few hundred onto my bills but it means they are paid - on time.
Keeping that much cash in my checking account just isn’t normal for us. We use that account to pay bills + make transactions. We keep the minimum there. All of the funds are in the high yield savings and easy/quick to access if we have an emergency.
I hate how they throw around the 18-24 month average. The reality is that data is biased by people who select Dave’s plan to get out of debt. If it were applied universally, that number could be much higher. The people who do the best with Dave’s plan tend to be relatively good earners (relative to cost of living of wherever they live) and previously bad with money. Those folks do amazing once they clean up their habits.
Both of my kids saved up $20,000 while in high school. Half of it went into their Roth IRAs and the other half into their savings accounts. Both will graduate from college with zero debt and have savings.
Don Voltaggio is the Costco $1.50 hot dog of convenience store drinks. An American hero.
If you’ve got a $5k balance on a card, at 22% that’s $1,100 of interest & fees that’ll significantly slow down repayment. If you find an 18 month no interest transfer option and you KNOW you can pay it off in 18 months. Do it. It’ll save you thousands.
Honestly, balance transfers were the only way I paid down my debt. 0% interest for 18 months. That was about 12 years ago and haven’t had credit card debt since. You just have to have the self control to not use the new card.
Our monthly expenses are more than $10,000 (mortgage, daycare for two kids, etc.), so we like to keep our checking account comfortably above that.
Same
Me too.
You must be living in very high cost of living area....
I keep my emergency fund in a separate checking account (which of course has a separate card) I treat that card like my emergency credit card, I even made sure to order a different color card so I don't use it accidentally. The point of the emergency fund isn't to make money off that money, it's to be immediately available in an emergency.
Justin Waller has so much money (second clip) was not giving financial advice. He’s a multimillionaire who started with nothing and worked his way up in construction. The title was clickbait and out of context. He doesn’t cook because he makes so much money it’s possible. He could hire a chef and no one would bat an eye. The dude is always moving around for various projects and doesn’t even have a primary residence/home that he owns so of course cooking is difficult. Did he exaggerate and mess around a bit? Yeah. Watch him on the iced coffee hour where that clip was made. Interesting interview
Exactly. Getting groceries and cooking can take up to 90 minutes. In that 90 minutes, he can make a millionaire dollars. That 90 minutes is more valuable so he just pays the $40 for Uber Eats so he can keep working.
Honestly shopping at the dollar store for non food related items when youre broke is very under rated.
First one is actually good advice
Transferring your debt to a zero-interest card can be worth it as long as you change your spending habits. If you keep doing whatever it was you were doing that built up your credit card debt in the first place you're just digging yourself deeper into a hole. If you change and really utilize the benefits of the 0% card it can be a great help.
It’s not a freaking math problem. It’s a habit problem.
5 months expenses in HYSA, 1 month in a standard savings account is my Emergency fund. I keep 1 to 4 grand in checking just depending on when I got paid and when bills are due.
Regarding the amount of money in checking accounts -- speaking of someone who HAS had their paycheck not arrive during some chaos at my employer, AND someone who is paid only monthly now - I don't like if my checking account balance doesn't at least cover a full month's expenses. My bank's normal savings doesn't pay much more than my checking interest, so for me my high-yield savings is an inter-bank transfer away - I'm not messing about with overdraft fee risk just to squeeze an extra couple percent out of a few thousand dollars.
Having one month of expenses saved up and accessible fast (maybe a cash in an envellope) feels great.
8:08 I have a feature on my checking account that makes sure I can make my big payments by moving money from savings to checking if I get below a certain amount and all the money left in my checking account before my paycheck lands goes to savings as well
When I saw the video I knew you were going to be disappointed 😂
When I was in my 20s and had too much dumb debt, the 0% balance transfer was very helpful for the debt snowball. So I wouldn't dismiss it as an option entirely, but I found it takes discipline to not just build up all new debt on the new card. I slipped up a couple times and used it. Shame. It's a trap for the undisciplined. Now debt free except the mortgage 🎉
10:50 George, I love the Ramsey plan and Ramsey content. Read all your books and listen daily. Just would really love to see some of the streams be more affordable. I’m in baby step 4 and was really looking forward to Dave’s investment live stream, but being frugal and “gazelle intense” I could not justify spending $200 for a 2 night live stream. I’m not saying the advice wouldn’t be great, just struggled to justify the cost into my budget.
Thanks, and keep up the great work!
If you are as rich as Waller then you probably shouldn't cook. Different tax bracket than 99% of people.
I don’t know who he is but to say he shouldn’t cook because he has money doesn’t make much sense to me unless he uses every second of his day to make more money and cooking would cut into his money making time.
@@bigshoe84ify The process of cooking is wasting time he could be using to produce money or enjoying the money he already had way too much of the spend in a lifetime. The better argument would be to hire a chef. A chef could probably supply better food at a better price.
My dad financed his retirement by transferring his debts from one credit card to another and making minimum payments. Sure he died with a mountain of debt, but that debt died with him.
6:40 lmao reminds me of when I asked my dad about his checking account he said he keeps 80k in there
I keep my checking at about $1000. My wife's checking account builds up, and when it hits $5k+ (every 6-8 weeks), she transfers all but $1k to our joint savings.