From: "Chris X" 
Newsgroups: uk.politics.misc uk.finance
Subject: Re: living in debt is a lifestyle choice for millions
Date: Sat, 25 Feb 2006 12:16:20 -0000


"Tim"  wrote in message 
news:dtphhb$5vr$1@nwrdmz03.dmz.ncs.ea.ibs-infra.bt.com...
> "Mel Rowing" wrote
>> To take advantage of a 0% interest rate you have
>> to pay a service charge currently 2 to 2.25%.
>
> WRONG!  - Some cards still
> don't always charge such a fee.
>
> Others charge a maximum of £50,
> which is only 0.3% of £15,000 (say).
>
> "Mel Rowing" wrote
>> The best offer availble at the moment is at
>> Virgin 9 months 0% at a 2.5% service charge.
>
> WRONG!  - Some offer 0% for **12** months.
>
> Anyway, Virgin's fee is 2% but with a *maximum*
> of £50 [I just checked on their website].
>
> "Mel Rowing" wrote
>> This pans out to an effective 3.3% APR.
>
> WRONG!  - More like under 0.5% APR,
> if you borrow more than about £13,500.
>
> "Mel Rowing" wrote
>> ... it is impossible to borrow money to invest in
>> low risk savings accounts and come out at a profit ...
>
> WRONG!  - See above.
>
> "Mel Rowing" wrote
>> ... otherwise everybody would be doing it.
>
> Many, many people are.  Aren't you?

I heard that financial expert (forgotten his name) on Jeremy Whine's Radio 
Two show saying that the CC companies have now started to share a lot more 
information with each other about people who do this, with a view to 
limiting it or possibly ending it altogether.