Is your borrowing going to be down in 2006?

[twins0203]

Balance Transfer available credit at 0% APR to my savings to earn roughly 4.5% APY and right before the 0% ends, pay them all off in full.

[Ima saver]

So you mean you can borrow $50,000 and instead of transferring a credit card balance, you can transfer that much money to a savings account? Do you just tell them how much you want transferred and to which bank? Then you make the minimum payment each month. That sounds interesting.
I was afraid you were betting it on some kind of game. (like football) This sounds much smarter.

[twins0203]

That is correct

Some CC companies, MBNA for example, will do a direct deposit to your bank account. Others will send you a check and count it as a Balance Transfer. Different cards do it different ways, but the key is not to get hit by cash advance charges. Once you have the money in your savings account, just make the minimum each month until the 0% runs out, then you just pay the card off. Free interest money

It is somewhat risky in the sense if you fail to make a payment on time, the rates will be jacked up to the usual 10-20% credit card rates so anyone doing this be careful and punctual w/ your payments!

[Ima saver]

Well that is very interesting. It would need to be a large sum to make it worth while, but you mention $50,000, so that is a large sum.

[PrincessPerky]

Originally Posted by Ima saver

Don't you have to borrow to get into a home? (mortgage??)

K so that was my first thought too, but the question is 'Re: Is your borrowing going to be down in 2006?' answer 'nope' so yeah he is borrowing.

[contrary1]

First response is absolutely, it's going to be down. But, after pondering the real estate bits here..............hmmm. Perhaps it will go up? I'm always keeping an eye out for more real estate. Having a mom that was an agent, made me well aware of land as an investment. I guess my answer has to be no debt unless it is an investment.

[DivaJen]

We didn't do any borrowing in 2005 and aren't planning on doing any in 2006. (Unless you count cc's, but we pay that off in full each month.)

[frugalfarmwife]

No borrowing for us in 2006! NOPE, NADA ZERO!! We owe 2,000 on one CC but it's at a 0% rate and so paying the minimum and banking the rest to earn interest until payoff date.

Our mortgage is it for us, we have a savings acct to keep the trucks running and are saving for a new used truck for hubby and have most of the money put back for the years insurance/taxes.

We do use a CC for hubbies gas purchase but pay it monthly, we use it for the cash back and because using it keeps us accountable for purchases, no snacks or coffee etc with it, just gas.

kj

[abowers]

I'm only using my debit card while I work on paying down credit cards. Have been doing this for the past 6 or 7 months or so. But I anticipate taking out more student loans for grad school in the summer and fall.

[john849]

I only use my credit card to buy things for the business.

I have told my bank to take the money straight out of my business account once I do any transactions so that I don't have to pay to much if any interest on it.

I don't think I will be cutting down, I will probably be going in reverse and be picking up the spending on it.

[Ima saver]

I don't plan to borrow for anything unless we find another piece of property that we want to buy.