Comments on: Paid Off $11,500 of Credit Card Debt Today

By: Angie

Angie — Sat, 28 Feb 2009 00:56:29 +0000

With all the companies on to auto-pay these days, the risk pretty much comes down to zero. Stick everything in a separate savings account, set it through autopay with the credit card company. If it doesn’t go through on time, since its with them, they are to blame.

By: Kristy @ Master Your Card

Kristy @ Master Your Card — Tue, 24 Feb 2009 04:01:47 +0000

I did this quite a bit before the credit card companies pretty much dried up this option. I’ve never really understood people’s aversion to doing it. If you set yourself a reminder to send the money back a few weeks ahead of time, then there’s nothing to worry about. In 2006, I think I made about $250 total profit off of two rounds of arbitrage, and that’s subtracting fees and taxes. The taxes weren’t as high as some of you are predicting, either. Although, I did stick my money in a CD rather than a savings because I wanted to lock in the rate.

In any event, nice job on the profit! Hopefully things will get better in the credit markets soon and this will once again be an option available to those of us who don’t carry balances. If credit card companies can make money off of us, I see no reason they shouldn’t be able to return the favor.

By: J. Money

J. Money — Mon, 23 Feb 2009 21:31:18 +0000

Good work boss. I don’t have the balls to risk it for $100 in profit, but it’s def. worth it if you stay on top of it and all like you did.

now you should try $50k

By: Danielle

Danielle — Sun, 22 Feb 2009 03:50:30 +0000

I complained to some of my credit cards about their balance transfers not having a maximum finance charge amount and that I would not use my card anymore due to this.

One card did change their terms eventually. I don’t do credit card arbitration. It makes me a bit angry to know that credit card companies might have removed this upper limit due to people like you that do it!

I have been using the good balance transfer rates with a maximum fee to help dig myself out of debt faster, so I guess as long as I can always find a company that doesn’t do this… I can’t complain too much

By: Moneymonk

Moneymonk — Fri, 20 Feb 2009 20:19:09 +0000

Congrats Clever Dude

By: Matt @ StupidCents

Matt @ StupidCents — Fri, 20 Feb 2009 02:31:29 +0000

For a while, I was thinking about doing a similar thing. I decided that the risk/reward wasn’t really worth it in the end for me. One of those things I was worried about was that the credit card companies were catching on and I didn’t want to get caught up in fees.

Congrats though…a buck earned is a buck earned!

Stupidly Yours,

Matt

By: Clever Dude

Clever Dude — Fri, 20 Feb 2009 02:23:11 +0000

Yeah, the whole taxes thing, not sure where you’re getting your numbers, but I expect to really only pay about $20 on that $175, thanks to tax cuts and deductions.

Is the 30 minutes I spent (max) worth even $45? Yes. Some of you people spend an hour to make $5 on a survey.

By: anonymous

anonymous — Fri, 20 Feb 2009 02:15:24 +0000

I meant to say “Don’t forget to pay taxes on that.”

Oops.

By: anonymous

anonymous — Fri, 20 Feb 2009 02:15:05 +0000

$175… Don’t worry to pay taxes on that. Now instead of $175 it’s probably $120 or so. Subtract the $75 fee, and now you’ve made about $45.

How much is your time worth again?

By: Clever Dude

Clever Dude — Fri, 20 Feb 2009 00:08:29 +0000

@Roger, it was more of the timing issue (worried about getting my money out in time to pay it back) as well as a poor guess at what rates would do.