Need advice

[jim4silver]

I have an interesting opportunity that recently presented itself to me. I have access to line of credit at 0% interest for almost a full year thru one of my credit card companies. If I want I can get up to my credit limit via cash advance with no interest for 12 months. The amount available is not huge, but it is over $25K.

I am thinking at the very least I could put it in CD and pay off the principal before the year is up and get some free interest money. Or if I want to be more risky I could by PMs, ETF shares (SLV or GLD). I am not even considering the stock market with things the way they are now. Or I could go to a casino and put it all on red and spin the wheel (not gonna do that either).

What would any of you do in this instance? I am otherwise debt free and conservative on things like this so I am a bit paranoid about accessing the funds.

Jim

 

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[pygmy]

Jim, forget it.
Now is not the time to go into debt.
Also, no job is bulletproof.
Geoff

 

[Silver Stripe]

I have an interesting opportunity that recently presented itself to me. I have access to line of credit at 0% interest for almost a full year thru one of my credit card companies. If I want I can get up to my credit limit via cash advance with no interest for 12 months. The amount available is not huge, but it is over $25K.

I am thinking at the very least I could put it in CD and pay off the principal before the year is up and get some free interest money. Or if I want to be more risky I could by PMs, ETF shares (SLV or GLD). I am not even considering the stock market with things the way they are now. Or I could go to a casino and put it all on red and spin the wheel (not gonna do that either).

What would any of you do in this instance? I am otherwise debt free and conservative on things like this so I am a bit paranoid about accessing the funds.

Jim

Not something I would do. Banks are only good for buying half dollars at. PM's are cash and carry too. HH Mark

 

[markmopar]

check this out:

http://www.stoozing.com/

 

[jim4silver]

Thanks for all the input. I will probably hold off for now, but if I do anything it will just be putting the money into a CD and paying back the principal before the year is up. The only way I can lose on that is if the bank goes under and FDIC decides not to reimburse me the money, which I guess is a possibility albeit remote.

Never heard of "stoozing" phrase before.

Jim

 

[Bassfish]

I will tell you of a plan that I have been wanting to do for some time now. If you go to Apmex.com, you can get silver eagles very cheap, also the buffalos are even cheaper. Take all those and put them on e-bay to make a killer profit. Go and look at the price Apmex is selling for and then see what these are selling for on e-bay. You will see the profit is definitly there to be had. I want to do this same thing, but I have come up on hard times, even had to sell all the silver I had, to pay bills. Check it out see what you think.

Last I saw the eagles were $18 (when they had them) and everything else was sold out. Tough times to find PM's even within eyesight of spot.

 

[BBcardsRI]

Stoozing... what a silly little name! =)

Jimbo, I like your CD idea and can't imagine it going downhill. Like you said, in order for the plan to hurt you, the bank would go under and you would need to not be reimbursed. That IS a distinct possibility, but rather rare. The worst thing I could imagine is if you waited too long to pull the money... ie. only a week or a few weeks before the principal is due and THEN your bank goes under leaving you not enough time to be reimbursed by the FDIC. Though... there is always that chance enough banks fail for the FDIC to get low/empty on funds. Afterall, more banks have failed in 2008 than any year in recent times, and who know how long or how bad that trend will go. It certainly is something to keep in mind though.

As far as buying physical online and selling on the bay for profit... you won't find a good enough deal to make that worth the hassle, so don't even try.

I would also not recommend buying non-physical in a commodity or stocks at this time in your situation... far too risky... anything could happen to hurt your investment.

The only non-CD option that I see as feasible is if you either have a great connection with a dealer or get lucky and hit one up at the right time. You could attempt to buy a couple 1k face bags of 90% junk and sell THEM on ebay for profit. Buying from dealers at any price is going to be cheaper than online 99% of the time, so your profit will be there. How good of a deal you get will determine if you do it at all and if you do, how big your profit will be. You could find a dealer who is about to commit a few 1k bags to another dealer at a paltry price for any number of reasons... and you could offer them a percent or even a few percent over what they about to commit them for and still end up paying a price that allows you to turn them around for a nice profit.

Just my 2 cents... and good luck with whatever you choose to do with the cash... well... credit.

~Dave

 

[Digginnit]

I guess you have to ask yourself if it is really worth the return. At a generous 4% on $25,000 you are only looking at $1000 ($83.33 a month), if you put it in a CD. Since it is a credit card and many credit card issuers are requiring a 2% payment on the balance per month, the monthly payment would be $500, and you can't use the $25,000 to pay it back since that is locked up in a CD. Are you willing to spend $6000 out of pocket for a return of $1000, even if you get the $6000 back when you pay off the card? Personally I would rather put $500 per month into a cash reserve/emergency fund.

 

[BBcardsRI]

It turns out to be a "free" $1000 though. Sure it isn't immediately given to you... but you still get it for doing essentially nothing. It's certainly better than nothing right? And it could be more if you get a better interest rate.

Saying its not worth it is like saying that if you were presented with the possibility of $80-$100 a month in cash randomly falling onto your doorstep that you would refuse it because you are too lazy to bend down to pick it up.

Both cases are dealing with free money.

~Dave

 

[jim4silver]

I guess you have to ask yourself if it is really worth the return. At a generous 4% on $25,000 you are only looking at $1000 ($83.33 a month), if you put it in a CD. Since it is a credit card and many credit card issuers are requiring a 2% payment on the balance per month, the monthly payment would be $500, and you can't use the $25,000 to pay it back since that is locked up in a CD. Are you willing to spend $6000 out of pocket for a return of $1000, even if you get the $6000 back when you pay off the card? Personally I would rather put $500 per month into a cash reserve/emergency fund.

I know I would not get rich off this if I do it. But how often do you get offered free money for a year? A free thousand would not be bad. I don't know if you are into CRHing, but think about how many boxes and hand rolls and dumps you would have to do to net 1000 profit now considering the low prices of silver and the sparse amount of silver coins that most of us face. Thousand dollars earned while sleeping and paying monthly payments would be easy compared to the CRHing.

Jim