You’ve been granted free access to this subscribers only article.
Credit card churning
Financial Straight-TalkMarch 6, 2013 | 1,032 views | Post a comment
What do you think about the practice of credit card churning?
I think it’s a pretty dumb idea. The concept is to run up the balance on one card as high as you can, then flip the balance from card to card in order to get perks like airline miles. But if you want to go through all the trouble and hassle over such a small amount of money, be my guest.
I’ve met thousands of millionaires, and none of them have ever credited their success to credit card churning. Think about it: With all the time you’d spend, and risk you’re taking on a scheme like that, you could actually have made some money.
If you want success, Ethan, you have to mimic what successful people do. This means living on a detailed plan, saving, and investing!
Both of our daughters will start college next year. We have $25,000 set aside for each in their custodial accounts, but my financial advisor says we should take the money out because it will keep them from being awarded as much in scholarships and other assistance. What do you think?
I disagree. It’s like saying you should quit your job to get food stamps. You guys obviously aren’t poor, and any financial advisor who says you need to fake being poor in order to get help is not a person whose advice I want to follow.
When your kids apply for scholarships and assistance, your entire financial picture will be assessed. More funding goes to kids from poor families than rich ones, but that’s only fair. Chances are, you fall somewhere in the upper-middle portion of the scale.
But no, I wouldn’t move the money or try to hide it. It’s just not honest to try and act like you’re poor when you’re not. I don’t believe in that kind of stuff.
Dave Ramsey is a best-selling author of The Total Money Makeover and the nationally syndicated host of “The Dave Ramsey Show,” which airs locally on radio station 550 KTSA. View column archives at www.daveramsey.org. Questioners’ identities have not been verified by the Dave $ays column or this newspaper.
Your Opinions and Comments
Be the first to comment on this story!
You must be logged in to post a comment.
Section A: General News Archives
Brownlow: Little chance ‘fracking’ could hurt water (September 2, 2015)
City’s proposed budget, property taxes raise questions (September 2, 2015)
County Commisioners ‘buckle up’ on $24M budget (September 2, 2015)
Court Update (September 2, 2015)
De Leon family sells Olivia’s San Antonio location (September 2, 2015)
Distracted driving program new requirement for teens (September 2, 2015)
Editorial: Coca-Cola to obese people: Hey, exercise more! (September 2, 2015)
Editorial: How will voters sort through all the candidates? (September 2, 2015)
Editorial: Libs: Symbols mean something — unless we disagree (September 2, 2015)
Floresville awards contract for event center repairs (September 2, 2015)
Floresville elections take twists (September 2, 2015)
Floresville struggles to ‘play ball’ (September 2, 2015)
Free webinar series for small businesses (September 2, 2015)
From student job to interim manager (September 2, 2015)
Karnes airport gets $2.1M in funding (September 2, 2015)
Labor Day office closures (September 2, 2015)
Letter: Karnes County officials continue spending (September 2, 2015)
Letter: Urgent: Nix Iran deal (September 2, 2015)
Letter: Voter ID thumbprint (September 2, 2015)
Make your way to Feather Fest (September 2, 2015)
MedDropSA is Sept. 5 (September 2, 2015)
Meeting Watch: East Central ISD (September 2, 2015)
Oscar Mayer issues recall (September 2, 2015)
Paid firefighters could aid La Vernia volunteers (September 2, 2015)
Police Blotter (September 2, 2015)
Register to compete in Adult Literacy challenge (September 2, 2015)
Relay committee to meet Sept. 8 (September 2, 2015)
SARA approves study of Floresville’s River Park (September 2, 2015)
Sponsors needed for Conversation with Constitution event (September 2, 2015)
Stockdale council approves $2.07M 2015-16 budget (September 2, 2015)
Substitute teacher training dates set (September 2, 2015)
TEA lauds Falls City, Poth (September 2, 2015)
The best medicine (September 2, 2015)
VA cuts backlog (September 2, 2015)
Welcome back! (September 2, 2015)