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Why Dave Ramsey Says 0% Financing Is a Scam

Loan Scams

Why Dave Ramsey Says 0% Financing Is a Scam


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Some deals really are too good to be true.

Key points

  • You may come across different opportunities to finance a purchase at 0% interest for a period of time.
  • Financial guru Dave Ramsey warns against that for a few key reasons, including how it can lead to overspending.

It’s not uncommon to finance large purchases and pay them off over time. Say you need a car, for example, and it costs $30,000. That’s a lot of money to empty out of your savings account — if you even have that much cash to begin with. Instead, you may decide an auto loan is the better or necessary way to go.

Of course, the downside of financing purchases is having to pay interest on them. But that’s not always the case. If you qualify for a 0% interest offer, you might manage to avoid paying extra money in interest form.

But while 0% financing might seem like a great option in theory, financial expert Dave Ramsey warns that it’s not the best one in practice. In fact, he advises consumers to steer clear of 0% interest offers — even if they seem like an excellent deal.

The trap of 0% interest

Generally speaking, 0% financing is an option that’s made available to consumers for a limited period of time. Say…

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