LinkBack URL
About LinkBacksHere is a great brief video which shows why it is almost always smarter to pay down credit card debt than keeping the money in a bank or investments.
http://www.youtube.com/v/m_jfQDTrMcQ&hl=en
-
Administrator
- Join Date
- Mar 2008
- Location
- Huntington Beach, CA
- Posts
- 248
Investing vs. Paying Credit Card Debt
-
Gold Member
- Join Date
- Oct 2008
- Location
- Midwest
- Posts
- 40
And today this couldn't be more true!
-
Centurion Member
- Join Date
- Jun 2008
- Location
- Smogland
- Posts
- 1,399
Yet so many Americans still feel it's better to keep thousands in the bank than pay their charge card bill.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.
Current Cards: American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Citi Thank You Premier
-
Gold Member
- Join Date
- Aug 2008
- Location
- Toledo, Ohio
- Posts
- 28
What I also realized back when the market was buzzing years back was that it was okay to have debt as long as your investments were earning more than the interest rate to make it profitable. Sure today that doesn't work but during the bull run of the Clinton era it made sense to go into low interest debt to finance your investments. Today though I would not recommend that in this skakey economy.
-
Platinum Member
- Join Date
- Jun 2008
- Location
- c-town
- Posts
- 57
keep money in stocks and 40 to 80% in a year plus owe interest on my credit card balance from not paying it off? no way dumb choice there.
-
Platinum Member
- Join Date
- May 2010
- Location
- San Diego, CA USA
- Posts
- 96
Some investors are getting the 0% for 12 months with huge cred lines and then putting the entire line in muni bonds @ 4%+ then month 11 pay back the entire bal. These people are able to get cash rates at this.
-
Centurion Member
- Join Date
- Jun 2008
- Location
- Smogland
- Posts
- 1,399
Credit card arbitrage was a nice game to play years back. Take 50k and throw it in a CD at 4% and you would net an easy $2k after 12 months. Muni bonds would be a great alternative since CD rates are dismal these days, but it's harder to do now because most had their CL's slashed during the recession, making it much less lucrative.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.
Current Cards: American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Citi Thank You Premier
Reply With Quote