Originally Posted by
notEnuf
In the mid 2000s CCs were doing 0% and no transfer fees. I put $15000 for a downpayment on a rental property on a CC and transferred it immediately. 13 years later I paid it off never spending a penny on interest. CCs aren't doing that anymore.
Carleton Sheets would be proud.
But you know as well as I that the vast majority of CC holders won't do that. And that actually goes to the heart of what DR is all about - behavior modification. I think an interesting contrast is how DR and Clark Howard go about 'training' people to get out of debt. Dr says to pay off your smallest balance first. That gives the debtor a sense of accomplishment and is a quicker reward. CH on the other hand says to pay off your highest interest rate first (which I think is the better financial move... but requires more discipline which has already shown itself to be elusive).
Anyway you slice it, they are trying to help people that get into a bind via a rigged system. The .gov wants people in debt. Were that not true, how is it that they allow credit card companies... banks... to charge usurious rates of interest on people that already show they cannot afford to be where they are?