Q&A: Wait, Are We All Wrong About Zero APR Strategies?

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.6 • 3.4K Ratings

🗓️ 14 January 2025

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

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Summary

#573: An anonymous caller has always put her large purchases on zero percent APR credit cards, but something’s been nagging at her. Is she walking on thin ice with this strategy? Von is confused why he keeps hearing that Roth accounts are better than traditional if they both lead to the same mathematical result. What’s he missing? Molly and her husband are well on their way to financial independence, but they feel unfulfilled with their careers. Can they afford to plunge into student debt with a 50 percent pay cut? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode573 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Joe, would it ever be a smart financial decision to put a vacation on a credit card?
0:05.8	If you have the funds already allocated for travel and you have a great points program, maybe.
0:14.8	Ooh. So you're assuming that you pay it off when you say points program. Are you assuming you pay it off within 30 days?
0:20.3	Yes.
0:26.4	Ah, all right. Follow up then. Would it ever be a good idea to put a vacation on a credit card and let the balance ride for 18 months? I feel like this is foreshadowing to a question we might be
0:33.5	answering. Is that what's going on? Oh, how did you know? How did you know? Because I know that a
0:40.3	bunch of people are thinking right now, how could that ever be justified? But we're going to
0:44.4	answer a question from a listener who makes a case for it. We're also going to answer a question from
0:50.1	someone who is pursuing financial independence, but wants to make some big shifts before they
0:57.0	get there. And we're going to answer a question about whether Rotha versus Trad is the right
1:02.7	choice. All of that in one episode? All of that coming right up. Welcome to the Afford Anything
1:08.8	podcast, the show that understands you can afford anything, but not everything. Every choice carries a trade-off. And that applies to any limited resource that you manage, your time, your focus, your energy. So what matters most and how do you make choices accordingly? This show covers five pillars. Financial psychology, increasing your income, investing, real estate,
1:28.5	and entrepreneurship. It's double eye fire. I'm your host, Paula Pant. I trained in economic
1:33.4	reporting at Columbia. Every other episode, ish, I answer questions from you. And I do so with my
1:39.5	buddy, the former financial planner, Joe Saul C-high. What's up, Joe? I am here and ready.
1:45.9	I'm super excited to dive in this credit card question.
1:50.5	Oh, man.
1:51.1	Right?
1:51.8	Well, let's hear it.
1:52.9	Our first question comes from Anonymous.
1:56.2	Hi, Paula and Joe.
1:57.5	This is Anonymous, and I wanted to get your thoughts on a strategy I use often
	...

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