Quote:
Originally Posted by pyroguy
A mortgage doesn’t pay interest first and then principle later. A mortgage is the same amount of interest no matter what part of the term you’re in.
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You may want to read up on amortization schedules.
https://www.bankrate.com/calculators...alculator.aspx
"Initially, most of your payment goes toward the interest rather than the principal. The loan amortization schedule will show as the term of your loan progresses, a larger share of your payment goes toward paying down the principal until the loan is paid in full at the end of your term."
Quote:
Originally Posted by pyroguy
I know nobody said on this thread that they made all of their money from their rewards. However, the myth that you can get back so much money by beating the credit card companies by only using their cards for your every day purchases is just that, a myth. Statistically speaking, at some point you either spend on something you wouldn’t have or you spend more than you meant to because you weren’t paying as close of attention.
I would be happy to get money back every year, but the fact of the matter is, statistically speaking, you’ve spent an extra $1,000, $2,000, or $4,000 more than you planned to throughout the year to get your $500, $1,000, or $2,000 had you used an alternative form of payment than a credit card. I referenced the millionaire research because I’d like to be a millionaire one day and I would like to mimic what they do so that I can be financially well off like them.
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What happens to most does not happen to all. I agree with the general idea of your post but not the absolutes. Statistically there will be outliers that will not spend the extra money.
Edit to ask - will you share the statistics you are referencing? Sounds like they'd be interesting to read!