I finally did it!

**chatterweb** · 07-01-2007, 05:34 PM

I "borrowed" $21000.00 from a Chase credit card at 0%.
The money is in my GMAC MMA at 5.16%.

I told Chase my intent. I am hoping to "borrow" more credit card money soon. I am just waiting until I pay off some additional real debt.

**leezza** · 07-01-2007, 06:38 PM

Is your intent to pay back the loan before it goes to increase % and keep the amount you made in interest????? otherwise I don't understand.

leezza

**emily_hope** · 07-01-2007, 07:17 PM

Is that twenty-one thousand? Wow. That is a lot of money. I take it that you borrowed it at 0% and you are earning 5.16% on the money in your MMA. How long do you have to pay the money back to Chase?

**chatterweb** · 07-01-2007, 07:54 PM

The 0% interest expires June 26 2008.
Let me tell you, I was so nervous after I deposited the check, real uneasy the 0% rate would increase, nervous since the bank held the check for 16 days!
First time jitters!!
It worked out just fine.
We make a monthly payment of $420.00 right from the borrowed funds, back to the Chase credit card each month, after the statement closing date.

The offer was a Chase Sony credit card. We also got a $100.00 sign up bonus which was good, since the fee to use the 1 balance transfer check was $75.00.

After being accepted for this card, the limit was $9500.00.

So, we "consolidated" 2 other Chase credit lines to the new Sony card.

We wound up with a $23500.00 credit line.

We decided to utilize $21000.00.

This is DH's credit, and right now he has 1 credit card (AMEX) that he owes $500.00 on, but I am PIF on Friday.

My real debt is $2600.00. I want to reduce it by half.

Then I will apply for the Chase Sony card and repeat the whole process.
I hope to transfer close to $30000.00.

This has been a long, tedious, learning experience. There is
a lot to know about credit scores, utilization, etc for it to work out.

I started this whole process because DH was tired of working overtime. His overtime brings in an extra $340 a month after taxes.
But he was getting worn out!!
So my goal is to earn $340.00 a month doing this initially.
Right now I am earning $145.00, but I added our personal EF Fund to the 21K to maximize the interest earned.

Since I have learned that some people earn up to $40000.00 per year in interest income alone, I want to explore borrowing more in the future.

**Sari** · 07-01-2007, 09:17 PM

This is interesting. I never would have thought of it.

**FrugalMomof3** · 07-01-2007, 10:15 PM

I've heard of many people doing that, you'll be earning money in the long run, good thinking but I bet it was so nerve wracking in the beginning

**kaykwilts** · 07-02-2007, 07:20 AM

But come June 08 you are still going to be owing that hugh chunk of money. Best bet is to attack that debt with a gazelle intensity before they start charging you interest. Playing around with credit cards il like swimming with sharks. You will eventually get bitten if you are not super careful.

**chatterweb** · 07-02-2007, 11:14 PM

Originally Posted by kaykwilts

But come June 08 you are still going to be owing that hugh chunk of money. Best bet is to attack that debt with a gazelle intensity before they start charging you interest. Playing around with credit cards il like swimming with sharks. You will eventually get bitten if you are not super careful.

Thanks, I am super careful. I check my online accounts for rate hikes all the time. I also call the Companies to confirm my 0% rate status.

I guess I have been super careful or lucky, but so far, I have never paid any interest for borrowing with credit cards. I respect the companies, and pay them back early too.
Just taking it to the next level, since borrowing at 0% has never yet backfired on me.
The money is safe, earning interest in a MMA. one month before the rate resets I will pay the card back in full.

I hope to have a new card that I am borrowing from by then.

Thanks for your concern!

**themartins903** · 07-03-2007, 02:42 PM

I guess it's not working for me. It seems as if you purchased a product because you had a coupon and really didn't need the item.

If it works for you.

Good luck

**flowergirl** · 07-03-2007, 11:54 PM

I agree this would scare me to death I hate debt and would not like this I would choose to sell on ebay or something borrowing money to make it would not be for me seems to be working for her though

**McD** · 07-04-2007, 09:11 AM

The point here is to take 21000 dollars (at zero Percent interest) and put it in a money market account weher you can earn 5.16% interest and leave it there until the 0% interest runs out. You take the 21,000 out of the money market and pay the money back and you get to keep all the interest you earned from it sitting in the money market?