Now that's a balance transfer!
Right now I have about $30,000 in balance transfers on credit cards with most of that in the bank earning interest at emigrant direct.com. That's about as much as my wife and I feel comfortable leveraging ourselves up.
I know that 2million has about $48,000 which I found impressive and Matt over at Crazy Money had just under $34,000 which is in line with how much I have.
Here's the thing. That's NOTHING compared to what some people are doing on fatwallet. For instance, check this guy out
EXEC SUMMARY
- Total Credit Limit of $363.2K [wow]
- Total Balance Transfer $170K [holy crap]
- Took $100K and put it into HSBC at 5% [sensible]
- Took $50K put it in brokerage accout and traded stocks and mutual fund [OMFG WTH IS HE DOING!!!!!!!!!!]
- $20K in more liquid savings
- Made about $9,000 and counting from interest, bonuses, selling gift cards, and an ipod. He also included some stock gains and unrealized mutual fund gains...which is cheating a little.
This left me completely stunned and amazed. First at the sheer size of the BT transfers and second at the audacity to put $50K into a brokerage account. Talk about some major balls...or stupidity!!!
In either case, it seems to be working out for him. I don't know if I'd ever be able to lever myself up to $170K in credit card debt. Maybe $50K-100K???
Tags: personal finance balance transfer
12:00 PM
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6 comments:
Holy crap. He's my hero...
I only have like $7000.... but then my credit line is only $20,500 (not counting some store cards. Effectively the money is in my brokerage accounts... No problem, as I can just keep transferring the balance to another card. Or pull out the required cash and pay it off any time I like. I am amazed at the huge size of some people's credit card lines though.
Wow - I got something to shoot for. $170k BT baby!
The most BT I had at one point last year was about $51K. Actually, I never felt uncomfortable with BT as long as I don't spend the money and it's interest free (even I have to pay some fees). With 5+% savings rate, the more the better.
woah..thats a lot. My total credit limit is not even close to even 1/4th that amount. I am pretty sure he is applying for a lot of cards..or has applied for a lot of cards at one point of time. That brokerage idea seems stupid to me, unless he has that much cash floating around to pay off the balances in case things go wrong. With that kind of balances, it won't take too much time to loose all the "free money" if he is not able to pay the cards back in time (..if something like Worldcom or Enron happens)....or may be I am just chicken in thinking that.
Also, the minimum payment required per month (if we consider 2%) ..will be like $3400 !! ..you can imagine what kind of an income you would require to do that.
I put 30 k into my brokerage account last week and I will do it again next week. Balance transfers.
The lowest limit on any of my credit cards is 30k, and I've never done anything with them.
So far I capitalized on about $600 bucks in a week, or 2% of my portfolio. The risk in stocks is great, but that can be managed if you are not overly greedy.
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