I have exactly zero dollars. Yet I get paid $50 per month to use a credit card instead of cash, and I have instant access to $20,000 (at the cost of $50 per month).

Here's how it works:


I have $20,000 in credit and student loan debt. I pay an average of $30 of monthly interest due to some promotional interest rates.

Instead of paying them off, I put the money in a savings account, that pays about $50 per month.

In addition to that, the credit card company pays me about $30 per month in rewards for using one of the cards for purchases, but I don't ever carry a balance on it between months, and pay no interest on it. This cancels out the interest of the other cards, add in the savings interest, and there you go. There's a free lunch or ten.

Whatever floats your boat. How long is the intro rate good for? You have to balance how much your payment will increase in the future versus what you are saving now. How much would paying off the loan reduce that future payment?

Personally, I don't like to owe money. Just me.

Matthew

I am doing the same thing with a Shell MasterCard... I get 5% back on every gas purchase... and pay it off every month... heh heh heh.

It's not intro, the three rates are 1.65%, 1.99% and 2.14%, all balance transfers.

Quote:

You should check your statements or cards. Generally balance transfer rates last 6-18 months. If they last longer good for you, just be aware.

Matthew

I have seen several cards these days that are offering long term balance transfer rates.

I think it's either a deal to help debt or a way too keep the feds off their back, "hey, look over here, see what we are doing? now don't regulate us."

There used to be a 5% interest bearing savings account that was accessible at any time, but that went away.

If I could find something like that, it'd be even better.

The only catch I can think of is you have to set up automatic payments, if you miss a payment they can reset to the standard rate. Happened to a coworker of mine and suddenly he had $10K burning up at 19%.

Sounds like a dangerous course.