Previously, I asked (mostly rhetorically), I have a plasma TV, am I crazy? Most people agreed no, so now I'm stepping up the craziness a level. In the last week, I've been thinking of doing something that I never thought I would - get a credit card with a 0% balance transfer. I had always thought that the risks outweigh the benefits. Lately, I've been think that I was wrong.
It started with reading about Get Rich Slick's Money Farm. On the same day, I came across Blueprint for Financial Prosperity's Don't Cancel Old 0% Balance Transfer Cards. I've spoken with both of these guys in the past and they are brilliant folks. Because they are doing it, it made me think that I should at least explore it - give it a chance and see what it has to offer.
It didn't take me long to realize that my HELOC is currently at 8% and that means I could make some big savings with a 0% balance transfer. Since I have a little over $13,000 there, I'd pay over $1,000 a year in interest. Suddenly this is a quick way to save $90 a month. That's like free cable and Internet for a year. How much "work" would that be worth to you? I think it's worth a bit to me. However, in looking into these things, it seems like it's very little work. I would simply set up an automated payment and alerts in my calendar to make sure that they get there. I would make sure that they are there far in advance, perhaps at least 15 days.
In realizing that I want to know more, I decided that I needed to go to the experts. Jonathan of My Money Blog has an excellent guide, How To Make Money From 0% APR Balance Transfers, which is going to be my bible in this endeavor. I'm going to supplement that with 2Million's Guide to Taking Advantage of 0% Balance Transfer Offers. There's definitely overlap in the two resources, but between the two I expect to be as prepared as I could be without first-hand experience.
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