Is Zero Percent Worth It?
Dave says that zero percent interest still doesn't gain anything for Mike and his wife. Pay off the debt and be done with it!
QUESTION: Mike and his wife are making a little extra money with their side business. They have one car payment that is no interest, so should they pay that off? The balance is just a couple thousand, along with $5,000 in credit card debt. They make $120,000 a year.
ANSWER: Pay it off and be done with it. Pay the car and the credit card off. You wouldn’t bother with borrowing $2,000 to invest, even at zero percent interest, so you’re not gaining anything here. Pay it off and be done with it.