A NY natives ring trick that will change the way you look at money

A New York City inhabitant thought he’d played the system after buying an $11,000 engagement ring using a 0% interest credit card offer from Bank of America.

With $25,000 sitting in a high-yield savings account earning 4%, NYC inhabitant Nick figured he could carry the balance for two months, earn a little interest, and make the most of the promo window.

“I have no intention of putting anything else on the credit card,” he explained on The Ramsey Show. “It’s just a cash outflow question as far as managing my monthly payment.”

However, finance expert Dave Ramsey was far from impressed.

“Write a check today and pay off the card,” he claimed. “You did a sweet, good thing in a dumb, bad way.”

Don’t mess with debt

Ramsey’s point was that the math simply doesn’t work out with Nick interest earning over 60 days would barely cover a fast-food lunch.

“You made enough to buy a biscuit,” Ramsey quipped. “You don’t beat Bank of America. The only way to beat them is to stay away.”

Nick’s hesitation came from the fact that dipping below $25,000 in his savings account would drop his interest rate from 4% to under 1%. But as Ramsey calculated, 4% of $10,000 is just $400 a year, less than $40 a month. “You can’t buy a pizza [with that],” he added.

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