Transcript
A (0:02)
If your private student loans are in default, you're not out of options. Go to yrefi.com Ramsey Today's question comes from Mark.
B (0:10)
In England, we are retired, mortgage free and financially stable with no debt except our credit cards. We buy what we need on a credit card that gives us points which we use to pay for clothes, food, etc. We then take that credit card debt and put it onto a long term interest free credit card for a period of 12 to 34 months, only paying the minimum balance each month at the same time as the start of the 0% deal, we put an equal amount into a savings account that pays us 7% interest. At the end of the 0% term, we pay it off for the savings and then keep the interest earned to pay for travel or a large cash purchase. We've been doing this for 10 years with no interest incurred. Cash back to us has been six grand plus eight grand earned in interest from the savings. Why shouldn't we keep doing this? Because it's exhausting.
A (0:56)
Number one, this is how you lost the Revolutionary War right here.
B (1:01)
Zinger.
A (1:02)
Oh my God.
B (1:03)
Take that, Red coats.
A (1:04)
Unbelievable.
B (1:06)
The mental calories needed has got to be worth something. Your time is worth something.
A (1:11)
And here's what's ridiculous. We don't, we do not know the dollar amounts.
B (1:14)
But what it took to get you took.
A (1:17)
I mean, what could you, what can we talk about? 50,000 bucks? And you run it through all of those ringers. When you get done, you got enough money to buy a biscuit. I mean, there's no money involved here. This is a, it's like a math riddle for a sixth grader and you fell for every bit of it. I think you need a hobby. Really. This is like exhausting. So the problem with all this is, is you have set up a house of mirrors, a house of traps, and you have figured out how to know. You know, I'm trying to remember what, what's the thing where the kid where the people. The ninja thing where they go through all the like American ninja warrior. Yeah, like you're an American ninja or the English ninja warrior for credit cards. So you've got this full obstacle course laid out and you know how to do it, but if you miss one handhold, you're in the water. If you, if you jump just wrong, you're gonna turn your ankle and be on your head. And so that's exactly what this is like a. It's like an obstacle course. It's like you did a treasure hunt with an obstacle course in Your backyard and you're 12 years old. No. And it's not worth the money if you actually add up the actual dollars that you're benefiting from. All these gyrations. It's so small, it's, it's almost makes you want to giggle. Like really if you'd just gone and done like work or something while you spent all this money, I mean all this calories on this, chasing your tail all over the place and trying to somehow beat the credit card company, you'd actually have some money. So no, no, no. And also Mark, let me tell you this. We have not done a study in the uk but we have done the largest study of millionaires ever done in North America. We studied 10,167 of them. 89% of them, 9 out of 10 are first generation rich, meaning they started with nothing and they became millionaires. The number of those self made millionaires starting from nothing that became a millionaire working a system that remotely looks like yours is precisely zero. Out of 10,167. Not one said they played the airline mile game, the high yield savings versus repay old credit card and 30 days out and back and forth gyration game. And that's how I made my million dollars, Dave. Not one, not uno, not one.