Rondo1, Legumes and Researchers,
Rondo1's question is recent, but I could not pass it up as he/she is
looking for ideas and assistance. It is also an objective (or is that
subjective) question to which the choice of answer could simply be
"Yes".
Rondo1 .. Of course you can make a profit, but at a cost to you in
diminishing your maximum earnings.
Try a debit card instead. That is, use the card as a vehicle to
transfer your own funds for immediate payments. The dilemma with a
credit card is the interest rate and associated fees as I'm sure you
have experienced. Your return must be greater than the two, before you
will realise a profit let alone considering the tax payable. Depending
on your country of residence and it's banking laws, you might like to
think about the following. It is normal practice in Aus and has been
so for a few years in the UK. If you're in The States, well I just
dunno.
I presume you are looking at short term profit. Profit is in fact
realised at the time of purchase, not at the time of sale. That's
because you would only buy a product at it's true value, or less. The
difference of the percieved value or equity is the tool in trading.
That's when you upsell, add value or borrow against the equity in your
product to buy further undervalued or potential growth products.
If you have a mortgage at say 6%, you can run an off-set account at
say 3%against your mortgage. The balance in this cash account will be
off-set against what you owe on the mortgage, thus saving you 3% on
the other side of the ledger. Plus, you attract no tax on the interest
earnt, because it has been "off-set". Attach to this a credit card
with 55 days interest free. That's your time frame for deals if you
want to use debt. Short term profit at 100% will only be gained if you
religously zero your credit card prior to it attracting interest.
If you can find a stand alone credit card with an interest free
period, good luck. But they are usually attached to portfolios as
above. Better still, put the idea to your bank. If they say no (with a
motgage), ask them why not.
I could also suggest another idea returning 18-25% with risk of
course, but you are talking credit card debt which I can only presume
to mean $5-25,000.
Please tell us more, as in your age, country and your own ideas. Then
you might get a better answer. Remember two very important adages. 1/
Risk equals return and 2/ There is no such thing as a free lunch.
Phil |
