{"id":168368,"date":"2025-06-08T19:34:09","date_gmt":"2025-06-08T19:34:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/168368\/"},"modified":"2025-06-08T19:34:09","modified_gmt":"2025-06-08T19:34:09","slug":"say-goodbye-to-your-old-way-of-looking-at-money","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/168368\/","title":{"rendered":"Say goodbye to your old way of looking at money"},"content":{"rendered":"

We\u2019re going to tell you an incredible story time that happened in New York. It turns out that a man wanted to play with the banking system\u2026<\/a> and decided to buy an $11,000 engagement ring using a credit card with 0% interest. His plan looked brilliant and foolproof, proper from a bright mind (but\u2026): he wanted to maintain the balance for two months and, in this way, he will earn interest thanks to the $25,000 he already had in a savings account that gave him a 4% yield. Wait, what?<\/p>\n

But what seemed like his best financial move ended up being a lesson about the true nature of financial debt\u2026 What happened?<\/p>\n

The plan to take advantage of the interest\u2026 and the trap<\/p>\n

Nick is the New Yorker at the centre of this story. This man explained on The Ramsey Show that he had no intention of charging more purchases to the card. His only motivation was to stretch the no-interest promotion to the maximum and, at the same time, keep earning interest from his savings account.<\/p>\n

The problem arose when the financial expert Dave Ramsey analysed the situation: the interest Nick would earn in 60 days would barely cover a lunch\u2026 With a 4% annual rate on $10,000, only $400 is generated in a year, less than $40 per month. Ramsey was clear: \u201cYou can\u2019t even buy a pizza with that\u201d.<\/p>\n

Never trust a bank<\/p>\n

Ramsey insisted that the real way to \u201cwin\u201d against the banks is never to take advantage of their promotions, but to stay away from debt. Although Nick\u2019s move seemed like a clever use of credit, the truth is that the benefit was minimal compared to the risk of incurring interest if something went wrong.<\/p>\n

The numbers don\u2019t lie<\/p>\n

The expert was blunt: \u201cYou did it sweetly and nicely, but it was a bad move\u201d\u2026 For Ramsey, the fact that the savings account balance dropped from $25,000 and reduced the interest rate to less than 1% eliminated any possible advantage.<\/p>\n

The risk of trusting banking strategies<\/p>\n

First law of life: don\u2019t trust the banks. Although many believe that 0% credit cards are a lifesaver\u2026 the truth is that they can become a trap, as in this case. An unexpected emergency or a change in the conditions can make the debt grow exponentially.<\/p>\n

In this case, Ramsey demonstrated that it didn\u2019t make sense to incur interest, even if it was temporary, to earn such a low yield. In simple terms: it wasn\u2019t worth it.<\/p>\n

Lessons for everyone: the power of quick payment<\/p>\n

\u0644\u0622Ramsey\u2019s advice was clear and simple: \u201cWrite a check today and pay off the card\u201d, because debt, even if it comes with tempting promotions, is always a weight that limits your financial freedom\u2026 And today you know you\u2019ll be able to pay it but\u2026 you don\u2019t know if tomorrow you\u2019ll have an unexpected expense.<\/p>\n

Avoid falling into the same trap<\/p>\n

Before using a credit card to finance big purchases\u2026 do the math carefully! It\u2019s very important, ask yourself if the benefit you\u2019re seeking is really worth the risk. And remember that the best way to beat the banks is not to use their offers, and to avoid \u201cowing them favours\u201d (debts) at all times.<\/p>\n

And it\u2019s true: money always has the last word, unfortunately\u2026 Nick\u2019s ring and his mistake with this promotion show that, although many banking strategies seem very tempting\u2026 They\u2019re never going to give you anything for free. So, if you have debts with your bank, pay them off as soon as you can! What do you think about this? Do you agree with Ramsey?<\/p>\n","protected":false},"excerpt":{"rendered":"We\u2019re going to tell you an incredible story time that happened in New York. It turns out that…\n","protected":false},"author":2,"featured_media":168369,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15],"class_list":{"0":"post-168368","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114649423399487017","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/168368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=168368"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/168368\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/168369"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=168368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=168368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=168368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}