Average Debt

[tripods68]

Averages don't mean much. For example, I am currently carrying $137,000 balance on my credit cards at 0%, while that money is sitting in my savings accounts and CD's that are earning >5% interest.

Call me naive. But how in the heck can you carry a credit card debt for $137K at zero rate. I didn't know credit card limit go that high, unless you can show high net worth right?. Just curious, what is your minimum payment and how much are you able keep after your monthly payment?

[safari]

Call me naive. But how in the heck can you carry a credit card debt for $137K at zero rate. I didn't know credit card limit go that high, unless you can show high net worth right? Just curious, what is your minimum payment and how much are you able keep after your monthly payment?

$137K is the total that I borrowed from 3 credit cards. My total minimum monthly payment is about $2,100, but that money goes back to my savings account (I make balance transfers the next day after I make my payments). I don't have any balance transfer fees, so I can transfer money as often as I want for free. I was able to get high credit lines by reallocating credit from the other credit cards that I have with the same financial institutions. For example, you get approved for a $10K card with 0% balance transfers, and you have 2 more credit cards with the same bank with $10K credit line each. You can leave $1K on those cards and move $9K to the card with 0% balance transfers, so now you have $28K available to transfer. It's actually very easy.

[disneysteve]

I didn't know credit card limit go that high

Between our 2 Visas and Discover, our total credit limit is around 100K.

[tripods68]

(I make balance transfers the next day after I make my payments). I don't have any balance transfer fees, so I can transfer money as often as I want for free.

Interesting. By making the transfer (for free) the next day, you don't actually reduce your balance right? So the risk would be if you're become sick or unable to work then this puts you in a bind. I take my hats off to you for your high reward high risk strategy.

Although, I can't imagine carrying that high balance except on mortgage, which we pay $1750 a month (include PITI) on $295K (30 years) original loan balance.

[safari]

Interesting. By making the transfer (for free) the next day, you don't actually reduce your balance right? So the risk would be if you're become sick or unable to work then this puts you in a bind. I take my hats off to you for your high reward high risk strategy.

Although, I can't imagine carrying that high balance except on mortgage, which we pay $1750 a month (include PITI) on $295K (30 years) original loan balance.

I don't really understand what risk you're talking about. I can pay off the balance in full at any time because that $137K is sitting in my savings account. Becoming sick or getting laid off won't have any effect on me. That's what emergency fund is for.

[Ima saver]

I think safari is very smart. Wish I could do that!!

[tripods68]

Sorry...I misread your response.