Quote:
Originally Posted by "W"
100K on a credit card???? Highest balance I think I ever had was 2500 in my life.... I bet they pay 300 month in interest and fees on 100K
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It would be much higher than that. You'd pay around $800-$900/month in interest on a $100k credit card balance. I've used credit cards to fund large purchases before rather than paying cash so my cash could be leveraged in other ways. I had well over $100k at one point on one of my cards, but was able to pay it off in a few months and made around $40k off of it (essentially investing on margin
). I also charge everything on my AMEX (including paying many of my bills with it) and pay it off at the end of the month. My AMEX bill is typically $4k-$5k each month, but I rack up frequent flyer miles like crazy. I put a $350 dinner on it tonight and I'll get 350 miles for it. Why pay cash when there is no interest charge and you get miles?
The people who get in trouble are the ones who live beyond their means and rely on putting $1k or more on their cards each month just to get by. That gets out of control very quickly. I've seen some good people get in way over their heads that way.