View Single Post
Old 11-11-2008, 08:16 PM   #102
Baggywrinkle
Guest
 
Posts: n/a
Default Re: Clear Your Debts 70% of Credit Agreements Are Unenforcable Therefore NON repayabl

Regarding using the law to your benefit.

Credit cards have three income streams.

They get paid at the point of purchase by the vendor
They make money from the various fees.
They make money from interest on outstanding balances.

We have eliminated the second two streams for over a year now by taking advantage of the grace period. In effect, we cut ourselves an interest free loan which we use to earn interest in our HELOC. We purchase EVERYTHING on credit card. I have not carried cash in years. The money needed to pay off the balance at the end of the grace period remains in the HELOC (or in an interest bearing checking account) until the last possible day before default. We are using the HELOC to pay off our mortgage. By leaving the credit card money in the HELOC we earn "negative interest" that we will not have to pay at a rate currently of five percent. When we started it was eight percent. Payments are done electronically to allow the money to work for us until the last possible moment. Since our HELOC and our credit cards are with the same bank that is the date due.
Transfers in house take one day.

The electronic transfer is also important out of house. By law it must occur in the U.S within three days. This circumvents the hold used by banks to to make interest on your payment while it "clears" the bank.

A last way to use their own regulations against them is the rewards card. Cash rewards using this system build up. My son makes 900 dollars extra by doing business in this way. He has a second card that collects travel points, using it for one or two free trips every year.

That is too fancy for my blood. We are totally focused on being mortgage free in seven years or less shaving twenty three years off a thirty year mortgage and saving over seventy thousand fiat dollars in interest not paid.
  Reply With Quote