Comments on: The “Zero Interest” Game http://www.kirkwalsh.com/blog/2006/04/27/the-zero-interest-game/ Thu, 21 Aug 2008 00:13:36 +0000 http://wordpress.org/?v=2.6 By: The Investimist » Is all debt bad? http://www.kirkwalsh.com/blog/2006/04/27/the-zero-interest-game/#comment-11 The Investimist » Is all debt bad? Tue, 16 May 2006 19:37:04 +0000 http://www.kirkwalsh.com/blog/?p=77#comment-11 [...] This process of using debt to increase net worth is called leveraging. As long as you can earn more on your money than what you pay in interest, your personal returns will be greater when you leverage than when you do not. This is the basic concept behind the Zero-Interest game that I have previously blogged about. However, there is the ever-present tipping point where too much debt will laden you down and you will be unable to repay your debts. [...] [...] This process of using debt to increase net worth is called leveraging. As long as you can earn more on your money than what you pay in interest, your personal returns will be greater when you leverage than when you do not. This is the basic concept behind the Zero-Interest game that I have previously blogged about. However, there is the ever-present tipping point where too much debt will laden you down and you will be unable to repay your debts. [...]

]]> By: Anonymous http://www.kirkwalsh.com/blog/2006/04/27/the-zero-interest-game/#comment-10 Anonymous Thu, 27 Apr 2006 18:29:00 +0000 http://www.kirkwalsh.com/blog/?p=77#comment-10 If you were dumb enough to use the card for a purchase (most of us doing this deal don't even activate the card / remove it from the envelope it came in), the 25% (or whatever) high rate would only apply to the amount of the purchase, not the whole balance transfer since the date you made it. Most cards that do 0% on BTs offer 0% on purchases as well, anyway. And we don't close the card when we're done with the BT -- we leave it open, which is just more credit available to us, which is GOOD to see on a credit report. The report of a high balance (it's smart to keep utilization < 50%) will go away 2-3 months after the BT ends, and the request to open the account will be gone in 24 months. If you were dumb enough to use the card for a purchase (most of us doing this deal don’t even activate the card / remove it from the envelope it came in), the 25% (or whatever) high rate would only apply to the amount of the purchase, not the whole balance transfer since the date you made it.

Most cards that do 0% on BTs offer 0% on purchases as well, anyway.

And we don’t close the card when we’re done with the BT — we leave it open, which is just more credit available to us, which is GOOD to see on a credit report.

The report of a high balance (it’s smart to keep utilization < 50%) will go away 2-3 months after the BT ends, and the request to open the account will be gone in 24 months.

]]> By: BudgetGuy http://www.kirkwalsh.com/blog/2006/04/27/the-zero-interest-game/#comment-9 BudgetGuy Thu, 27 Apr 2006 17:34:00 +0000 http://www.kirkwalsh.com/blog/?p=77#comment-9 I'm currently earning about $200/month from this. Using my banks online billpay it's a peice of cake. took a total of 1 hour to set up. I’m currently earning about $200/month from this. Using my banks online billpay it’s a peice of cake. took a total of 1 hour to set up.

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