Should I Pay Off My Interest-Free Debt Right Now?

Funny at the end I think Dave forgot that the kids is studying Marketing, lol

I don’t know if I agree with this logic. I have a 0% credit card with a balance, and I could pay it off immediately. However, I’m making 4.5% on that money in a savings account for another 21 months until the interest-free period ends, which isn’t an insignificant amount of interest.

Psychologically I do feel like there’s a loosely tied rope around my neck knowing that I have debt. It’s a tough one.

Paid the interest debt first, then take that payment and attack the interest free next.

Dave. You unaware of people in the US that don't have food, clothing, and raiment?

OMG Dave is right!! The sales peopel do cause discontentment getting us saying "if I can only get this get that.!!

We want EVERYTHING

Uncle Dave said if I need another gun it’s different 😆

If it was like 10k+ then it might be worth setting the money aside until you're charged interest because inflation right now could make it worth a lot less. $1600 though? No, just pay it off asap. Even with a larger loan most people should just pay it off because the vast majority of people won't truly set that money aside and will end up using it for something else.

"Should I pay my debt while interest rate is on freeze?"
Depends.
I am paying mine with highest interest rate while forbearance is active. Why even wait and hold onto the money before start paying it once the forbearance is over? I have the feel that once forbearance is over, I probably will have a high interest fee. Besides, I'm getting there to being debt free.

Smallest to Tallest

Man, I wish I'd found Dave 20+ years ago when I was young and stupid.

Doesn’t the interest make the interest bearing debt larger than the interest free debt overall?? Come on, Dave! Common sense

I'd pay off the one with interest first. They are basically the same amount anyway. Stay out of debt! You live at home with almost no expenses there is almost no reason to have debt. Save the money for what you want to buy.

Dave: “you’re job sucks!”
Caller: dead inside

Needs vs wants. people need to re-learn those. Because this society has it all backwards

Thank goodness Dave just gave me permission on my “gun stuff” budget.

Advertising will get you wherever you hide.

"Music people, Car people, Gun People", alright hold up, you can't just slip gun with the other two. I feel attacked.

“Music people, car people, gun people”
Why must all my hobbies be the expensive ones 😅

Gas = Guitar Acquisition Syndrome.... I had it

When your lawn mower quits ,that would be a need to buy another . Neighbors would not like my tall grass .

Seriously, what is this kid calling for?

Sweetwater will get you every time.

One thing missing from this equation is, how long is it interest free? Chances are, not long and the interest will be higher. If he doesn't pay it off(statically he won't), then he will just get in the habit of thinking, "it's OK, because it's interest free".

Dave is so joined at the hip with "muh baybee steps" that he cannot make a simple adaptation that will save this young man $75-100. Either math matters or it doesn't - you cannot have it both ways. When the math corresponds with "muh baybee steps", Dave is all over the math. When it doesn't, he tries to say it is a psychological problem and the math doesn't matter.

Of course, this is not the first time. Ramsey folks often give horrible financial advice that would cost the caller tens of thousands in unnecessary taxes and hundreds of thousands in lost opportunity costs.

These calls are getting ridiculous. Dave is turning into jerry springer.

If you're not ready for an emergency and there is any possibility of future debt, never pay off a 0% loan early. Any debt you'd ever have to incur in the future would certainly be at a higher interest rate. Only pay off a 0% loan if you know there is no possibility that you'd ever need to take on any debt in the future.

???? 16k a year 😂

That's right Dave! Lolol

Supposedly you can make an average of $30/hr+ as a music instrument instructor.

I paid off my highest interest debt first and now I'm debt free except the mortgage which is the lowest. Worked best for me.

This kid is gonna be okay

What kind of question is this 😐 pay the one with interest first and keep paying the minimum amount for the other one. When you pay the one with the interest start paying the other one. I don't agree with Dave Ramsey every time but he definitely helps some people

The guy should have stopped arguing with her and called the cops.

“Move up to Nashville” 😂 A wise man once said “The walk back will do ya good.”

i work from home and speak to customers from my home , i leave the dave ramsey show playing in the background hoping some of his knowledge will rub off on my customers .

Yes. Pay it off. You may have another emergency soon. Get out of debt people.

So this dude is a loser who don’t know how to work a summer job and pay off his debt good lord

Absolutely ridiculous. If you are so emotionally unstable that you think it makes sense to pay off a small interest free debt before something at a high interest rate? You need a lot more help than you can get here.

They're so close to each other knockout the one with the interest

Ridiculous.... pay off the one with interest first.

I would NEVER pay off an interest free debt.

Prolong the agony on the interest free debt. Pay the highest interest first.

Rice and beans.
Beans and rice.

Yes

I miss the old intro music

Second

First