From: "Mel Rowing" 
Newsgroups: uk.politics.misc uk.finance
Subject: Re: living in debt is a lifestyle choice for millions
Date: 25 Feb 2006 12:53:56 -0800
   posting-account=HItWpAwAAACkulvPWsGnx9LSmPrTJdYr


Tumbleweed wrote:
> "Mel Rowing"  wrote in message
> news:1140898257.441940.281600@i40g2000cwc.googlegroups.com...
>
> John Redman wrote:
> > "Mel Rowing"  wrote
> >
> >
> > This is a better deal than you would get for a personal loan but it is
> > impossible to borrow money to invest in low risk savings accounts and
> > come out at a profit otherwise everybody would be doing it.
> >
> > ** It is indeed possible because in many cases the 2% is capped at =A35=
0 or
> > so. In my case, I had =A348,000 on deposit in this way for which I paid=
 =A3100
> > in transfer charges and which earned me 3% net. The current balancer has
> > dropped to about half that but I still reckon it is earning me about
> > =A31,000
> > to =A31,500 a year, depending on the balance.
>
> I take your point about the =A350 cap and have in fact found a couple of
> cards with no balance transfer charge at all and so I have changed my
> tack a little.
>
> However, how on earth do you crank up the initial balance of =A348 000
> without incurring hefty monthly interest charges (currently ~15.9% APR)
> bearing in mind that there is a minimum repayment on all balances
> (5% of =A348 000 is =A32400 p.m.)
>
> Further I note that repayments are applied according to a hierarchy of
> liabilities on the account. Top of that list are fees and charges, next
> comes interest, then comes balance transfers and cash withdrawals and
> purchases come right at the bottom.
>
> =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
>
> Simple, dont use the card for anything other than balance xfers, obviousl=
y=2E

Obviously except that this doesn't tell us how he got =A348000 out of
his credit card account into his bank account in the first place
without incurring excessive interest charges.

It's not like any credit card company is going to lend you =A348000 cash
interest free.

They will only waive interest upon balances transferred from an account
held with another company as an inducement to move your account to them.