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Originally Posted by BCompDude
Right, if you follow his advice you won't need any credit cards because you won't be in debt. Good lord, why in the world would you need a limit of 20k, and on ONE credit card of many? Do you buy cars with your card? "Take advantage" how? Debt is debt is debt. Even if you were to use that zero percent for real estate or stocks or some other appreciating assest, the average transfer length is 6 months to a year. So you have to get back your initial investment amount plus whatever "profits" you intend to get by that time or you pay interest anyway. I know you will disagree with me, but I see absolutely no reason to have a credit card with those balances when you are supposed to pay them off every month. And if you are transfering 15k I think there are more pressing matters to attend to than if you can open up savings accounts with that money. Thats how people become enslaved. I'd much rather follow Dave's advice than yours. Its a dangerous game you're playing, one missed payment and its hurtin' time.
Edit: I MUST be reading your posts wrong. "Of my existing credit card lines, Chase frequently sends me 0% offers for 6 months on Balance Transfers with a 3% fee up to $75. If you are transfering large amounts($15,000 or more), the fee is minimal. I then use that cash. . . " WHAT cash? These are BALANCE TRANSFERS. You don't get cash to open accounts or cds. Wires must be crossing. . .you'll have to detail.
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Most credit card companies allow you to do a balance transfer directly into your checking account as a deposit. You then transfer those funds or write a check to open up a cd account along with a high yield savings account. You use the savings account to make the monthly payments on your credit account. Your cd should be timed to expire with end of your 0% promotion rate.
As far as missed payments, there is no excuse for making a late payment with automated payment systems. The biggest hassle of this whole thing honestly is all the 1099's you have to deal with at tax time from all the different insitutions you've had deposit accounts with over the year.
Just to make sure we are all clear on this subject, I do not have any debt related to consumer purchases. Our only debt is real estate and investment related. Financing anything that depreciates is nuts. On that, Dave Ramsey and I are in complete agreement. However, whenever you have the opportunity to borrow at a low rate and invest at a higher FDIC insured( or a federally insured credit union deposit) rate, it makes sense to do so. With that, you are doing exactly what banks are doing. If you think of it as a business, there's no reason you can't make $10,000 - $20,000 a year on the side in your spare time. Some people may consider that an insignificant sum, but it is worthwhile for me and my family. It is a perfect opportunity for SAHM's to help out with the family budget on their own time. This upcoming year my family will go on vacation for free, I'll have earned money towards multiple 529 plans, built up our savings, and earned rebates toward our next car(all our cars are paid for with cash). If that is so wrong, I don't want to be right.