What's Wrong With 0% Financing?

What's Wrong With 0% Financing?

Dietrick asks Dave if it’s ok to finance his furniture set at 0%.

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50 Comments

  1. Rich Girl on November 19, 2021 at 11:37 am

    Baby Steps…thank you Dave Ramsey and Family …you are a Blessing!

  2. Voice in the wilderness. on November 19, 2021 at 11:37 am

    All they do is jack up the retail price.

  3. Twisted Foo on November 19, 2021 at 11:37 am

    Most cases of zero % interest I see is the same cost as buying it outright. Sorry but not most people are a millionaire who can afford to buy everything with cash. I wouldn’t think a millionaire would need to finance since they can easily afford to buy it up front in the first place. Really out of touch you are with these studies of millionaires

  4. Kiloh Jonson on November 19, 2021 at 11:38 am

    Rooms to go furniture is garbage, run away.

  5. Harry Kashouli on November 19, 2021 at 11:40 am

    Question comes in, and Dave reads from the "WE JUST FINISHED A STUDY OF 10000 MILLIONAIRES!!!" card xD

    Every time.

  6. ZYD HAS on November 19, 2021 at 11:42 am

    Rich people don’t do small loans, but they definitely do big loans. In fact it’s the most efficient way they get richer.

  7. news on November 19, 2021 at 11:43 am

    Wait so I would be paying the financing even if I payed cash because it’s baked into the price. That’s what I got out of it.

  8. Boat Lover on November 19, 2021 at 11:44 am

    I agree with you completely, particularly when younger and not liquid. I will do it once in a while now in my early 60’s on something I could easily pay cash for and invest the money with zero risk of not paying off. I set my banks bill pay to auto pay throughout the loan. They really hope you miss a payment to get the payment. You’re right, more will pay the price for missing a payment.

  9. Miguel Pena on November 19, 2021 at 11:45 am

    I bought a Peloton bike with zero percent interest and I paid the same as someone who paid cash so I didn’t pay any more 🤷‍♂️

  10. emilio bustamante on November 19, 2021 at 11:51 am

    He literally mentioned something that had nothing to do with the original question

  11. Zach G on November 19, 2021 at 11:52 am

    I used to work for Best Buy. An $300 iPad is $300 no matter you do free financing or pay cash. He’s probably right on the money with furniture or cars and stuff like that.

  12. juan martinez on November 19, 2021 at 11:53 am

    Mr. Ramsey, I must object to your thought on the builtin interest rate. If your theory holds true, and you bought a piece of furniture at $500 out right. I am assume that you already paid interest rate without even financing it.

  13. Frank M on November 19, 2021 at 11:53 am

    How many millionaires became millionaires by paying cash for everything? I have met several millionaires that have become millionaires by using other peoples money.

  14. Jesse Rmz on November 19, 2021 at 11:54 am

    When we bought our new house we bought all our furniture cash at a discount because we paid cash. Way better than making payments. Payments are dumb.

  15. John Cave on November 19, 2021 at 11:55 am

    Sound logic.

  16. Neil Smith on November 19, 2021 at 11:55 am

    90% of people can’t walk into a store and spend 5k cash on furniture. I guess we are all supposed to sit on plastic furniture from the dollar store

  17. Mar Valen on November 19, 2021 at 11:57 am

    Completely disagree on this.

  18. kalman nagy on November 19, 2021 at 11:58 am

    I’d like to call up and ask a question.

  19. Inzee on November 19, 2021 at 11:59 am

    Can you even negotiate in prices if you are paying upfront? I am fortunately one of 12% who pays off on time…

  20. Joe P on November 19, 2021 at 11:59 am

    I have a 0% car loan.. i owe 6k on it left.. I could sell my car for like 16k right now… Its my only debt other than my morgage. i can pay it off right now but why? Ive been making money on investing it.

  21. Christopher McCord on November 19, 2021 at 12:03 pm

    Technically when you pay cash for something you are paying the interest rate of what you could’ve made investing it….

  22. Luke From Texas on November 19, 2021 at 12:04 pm

    I hate having bills. Any financing is just a new bill.

  23. AmazingLats on November 19, 2021 at 12:04 pm

    My roommate has snakes, they’re fun to play with, never been bitten:)

  24. Gay Hendrie on November 19, 2021 at 12:06 pm

    The amount you’re paying does not pay it off and then interest comes due

  25. Allan Hood on November 19, 2021 at 12:06 pm

    Sit on the floor if you can’t pay cash for you couch

  26. Brian mott on November 19, 2021 at 12:10 pm

    If I had a dime for every time Dave brings up the study of 10k millionaires he’d have 10k and one millionaires to study

  27. 101perspective on November 19, 2021 at 12:13 pm

    I can understand taking out a loan for a car or house since you usually absolutely need them and they cost a ton. However, loans on stuff like furniture? With very rare exception, I just don’t get why anyone would do that. I mean, if you can’t afford to pay cash for those type items then you probably have bigger issues… like you have gotten yourself into too high of a mortgage or something like that.

  28. Philip M on November 19, 2021 at 12:14 pm

    What if the monthly payment is infinitesimal relative to your income, a smart phone for example?

  29. ScepTiKaL on November 19, 2021 at 12:15 pm

    If you can afford the item, there’s no good reason why you couldn’t pay cash for it. Saving 8%pa on a couple thousand isn’t significant enough for me to consider financing.

    Sure, mathematically it makes sense. But it’s such a small amount, and I just don’t like that sort of commitment. If you can afford it, pay cash.

  30. cerejen c on November 19, 2021 at 12:15 pm

    I bet. Not one millionaire, Said. Their lost their money at 0% , i bet not one millionaire said they lost their money because of a couch either, Logic goes both ways, it is not logic if you gonna go one way with it to fit the narrative, But he is prolly right on products being priced in, but people should naturally shop around anyways. I mean who doesn’t shop around for a couch just to see.

  31. Bat Man on November 19, 2021 at 12:16 pm

    There are 20 million millionaires in the usa today your little 10k study of millionaires is meaningless and can’t be totally random there all coming out of whatever pool your pulling them out of

  32. wraith soldier on November 19, 2021 at 12:16 pm

    Why do you hate snakes

  33. Hiram Bright on November 19, 2021 at 12:17 pm

    How many millionaires do actually borrow money? Spoiler alert: most of them.
    If the price of the item is already built in, the price will be the same if paid in cash, most of the time.

  34. Tisha on November 19, 2021 at 12:18 pm

    I worked at a furniture store many moons ago. The sales People had to change the price tags on the furniture to match the terms we were offering …the longer the terms the higher the prices. Not to mention the mark up on the furniture was very high.

  35. Ceez Geez on November 19, 2021 at 12:20 pm

    Great point. Honestly never thought of that. I’m dumb

  36. Tom Loglisci on November 19, 2021 at 12:20 pm

    No prices arent built it. It’s illegal.

  37. The Mediator on November 19, 2021 at 12:22 pm

    Cookies don’t make you wealthy but Dave certainly partakes in them.

  38. Díor Díor on November 19, 2021 at 12:23 pm

    He makes a lot of sense!

  39. Mr JONES on November 19, 2021 at 12:24 pm

    I’ve seen websites where the sponsors call insult the people that follow the principles shared by Dave Ramsey. They fail to understand Ramsey is sharing a way of living. He shares the practices followed by the most successful people.

  40. CruzyLife on November 19, 2021 at 12:24 pm

    Dave is too radical

  41. Carlos Rodriguez on November 19, 2021 at 12:26 pm

    Didnt Soros became super rich by leveraging his position a lot??

  42. Eliza Williams on November 19, 2021 at 12:26 pm

    NOT A SINGLE ONE BOUGHT FUNTATURE AT ZERO PERCENT… because you buy furniture CASH!

  43. random kid on November 19, 2021 at 12:26 pm

    There is an entire industry called leveraged financing. Lots of millionaires lol.

  44. WoodYbOp on November 19, 2021 at 12:27 pm

    Just had to be from Oklahoma. LOL

  45. Will Risher on November 19, 2021 at 12:28 pm

    Very well said

  46. Brendan Fitness and Money on November 19, 2021 at 12:29 pm

    I think Dave is right to focus on the biggest wealth building tools and not get lost in the weeds of “saving” a few hundred bucks here and there by playing interest rate games.

  47. Nate Haupt on November 19, 2021 at 12:31 pm

    Uhhhh. Unless inherited, all of the really rich people I know borrowed money and still do. Typically to start and run their businesses.

  48. Marc Pecora on November 19, 2021 at 12:34 pm

    I get what Dave is saying but I was in a spot where I had to leave my previous residence and got furniture on financing. When I was able to pay it off I negotiated 1,000 less then the pay off When I first called

  49. Mark Hasenour on November 19, 2021 at 12:35 pm

    It’s nothing but a marketing strategy

  50. Chris Nelson on November 19, 2021 at 12:35 pm

    Very condescending response

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