Posted on 12/28/2024 1:11:54 PM PST by Responsibility2nd
In a podcast, personal finance guru Dave Ramsey boldly declared that even if offered $1 billion at 0% interest for 10 years, he wouldn't take it. That's right, not even a billion dollars with no interest could tempt Ramsey to break his cardinal rule of never borrowing money.
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"Mathematically, it might make sense," he admitted. "But I built a career and financial success on avoiding debt and I'm not about to change that now. Borrowing money is an unnecessary risk and I'm not interested in playing that game."
(Excerpt) Read more at finance.yahoo.com ...
Depends on how you set it up. If its a balloon payment, it would be $0. If its amortized evenly, it would be $83m a month, although then you’d use some of your principal each month to pay down and end up with less money than $26m a year net, but still would net probably $125m or so net of taxes over 10 years.
Sorry $8.3M a month*
If you look at financial advice forums, the #1 problem is a car payment.
Ramsey deals more with people who take out a 0% loan and then can’t pay it back before it balloons. There is an endless supply of these people which is why they offer 0% loans.
Which over 12 months amortized monthly is 99.6 million a year. This being an exceptionally impossible loan to get it would be difficult if not impossible to structure the amortization. These are just observations on the pipe dream Ramsey came up with.
Certainly not likely for his “clientele” of people trapped in cycles of so call 0% loans which carry up front 3-5% of loan amount as a fee- thus being the actual APR over usually only 12-18 months.
It takes for these people discipline to pay each month in divided amounts and end up at zero$ at the end of the term.
Oh I get it, most people are terrible with finances & financial discipline. But its such a ridiculous statement on its face for anyone who does have any financial discipline whatsoever.
The people who have little self control over their spending seem to want expensive cars but no cash to buy them.
“No offense again, but that’s stupid. As stupid as your $1.00 mortgage comment
Yeah. Keep following Dave Ramsey. He has made millions off of people like you.”
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One piece of advice I take from Ramsey that I can apply to you is “never take financial advice from broke people”
Ramsey knows that if he accepted a zero interest billion-dollar loan, he’d fly straight to Vegas and put it all on red.
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