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BigSwitch

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #60 on: May 28, 2007, 12:48:31 PM »
You have $50,000 in credit card debt?

BigSwitch

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #61 on: May 28, 2007, 01:03:42 PM »
Having $100,000 in the bank only does you good if you don't owe the same in credit card debt. Your net worth is equal to $0 at that point.

nyc78999987

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #62 on: May 28, 2007, 01:24:45 PM »
Loyola LA's new theme song.  Check it out:

http://youtube.com/watch?v=e7iyjsLlsyk&mode=related&search=

BigSwitch

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #63 on: May 28, 2007, 01:34:07 PM »
Why tax it, put the $4,000 into an IRA.

The idea works, but what you are talking about is about the equivalent to make a 180 on the LSAT. It is possible, but I seriously doubt you can consistently get that type of return.

I can't argue that cc arbitrage has $0 return, because it obviously can have nominal results. However, your time would be better spent researching mutual funds for an IRA and saving your money.

You'd make more money if you just bought real estate. You would get a huge deduction off your income and depending on the market see a larger return over time. Even more if it were able to lease at the rate of your monthly payment.

ě

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #64 on: May 28, 2007, 01:36:42 PM »
You found a 'scam' to make $6000 a year? Wow, that's one hell of a racket, why do we even bothering going to school...

internetuser

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #65 on: May 28, 2007, 01:40:15 PM »
i hope this is some elaborate flame.

but if it isn't, please don't go to law school.

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #66 on: May 28, 2007, 01:46:55 PM »
Emphasis a little.


sharky

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #68 on: May 28, 2007, 05:29:55 PM »
and to those of us who are making the in the very low five figures, $4k is a lot of money... :)

(salary isn't really indicative of success/reputation in lots of fields...)

buffettologie

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #69 on: May 28, 2007, 09:17:12 PM »
Stay away from credit cards?  There's a whole world of free money out there for savvy credit card users (0% APRs, cash back, sign-up bonuses, statement credits, checks for Chase credit protector products, promotions).  It doesn't take an MBA to read fine print and show some self-restraint.  Unless you're a) the OP, b) the kind of guy who will sign up for a 25% APR credit card in exchange for an XXL t-shirt with Bob Marley and a bong on it or c) a girl with an addiction to Coach purses, there's no real need to be afraid of credit cards. 



staying away from CCs is stupid.

3%-5% back on gas, food, groceries depending on how smart you are with the cards and follow the expiration rules on points.  who, other than somebody cheating their taxes, in their right mind would pay cash. 1% back on everything else.

credit card arbitrage is great, but it does require an appropriate level of income that I haven't had until lately (we're talking around approximately a 1-to-1 relationship between annual income and amount borrowed when you get over $50k). 

Unfortuntaely, it requires keeping cash in bank accounts for at least a year, and I'm not enough of a daredevil to try to transfer that kind of money to pay for law school.  Think about what an extra $100k in the bank would do to your loan eligibility...

what I was talking about here was largely just the kind of stuff that hits the credit score, just opening and closing cards.  the only negative that you can't remove from your score with those games is the "number of inquiries".  everything else is removed when newer cards are closed. In the past two years, for which I have records, I've earned $1400 simply as sign on bonuses (there's more as credit protector programs and of course cashback).

thanks to the OP, those who use cards wisely can get away with this kind of crap.

This is incorrect advice. Closing cards is never good and does not get it removed from your credit report. Old cards stay on for 7 years until they fall off. Inquiries can be bumped off using credit monitoring services (each daily soft pull contributes to remove hard pulls eventually - it takes about 80-100 softs before the hards fall off). Visit fatwallet.com and go to the finance forum, they'll show you how to really maximize your profit in this area. I've got just over 50K sitting in my savings accounts right now with no adverse action and I'm well on my way to bumping off the inquiries I recently accrued.

As others have said, don't try this at home.
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