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Just a thought about FREE Money?*

I don't know much about credit cards and stuff like that but I had a thought... what if you had three cards #1, #2, & #3. Buy stuff with #1 Pay #1 off with #2 Pay #2 off with #3 Pay #3 off with the paid off #1 (like in a triangle) You'd Always be in debt and NEVER be in debt Can this work? i was just wondering... I could only think of one other thing and that involved stealing the Giant Doughnut infront of Dunkin Doughnuts and that'd be too troublesome

Answers:

1) You'd constantly be in debt because all you're doing is passing the basket by shifting the balance from one card to the next. This works for 3-4 weeks but once you hit a due date and interest becomes payable you get into trouble.

2) I've thought about this too, however there would be a few restrictions. 1. You could only ever spend as much as your lowest limit credit card. 2. You would have to maintain the utmost discipline in doing this month after month. Late even once and interest would start accruing 3. You would have to do this for the rest of your life. There are easier ways to sneak money around uncle sam than this.

3) Credit card companies don't accept credit cards as payment. While you could do a cash advance, there are extra fees involved (usually 10% of the total you took out.) So, say you charged $100 for something. Then you use your 2nd card to get a cash advance to pay the first card. Ok, now you pay off the $100, but now owe $110. So now you take a cash advance on card #3. So now you owe $121. Round and round you go until you hit the limit on a card. At that point, what are you going to do? Regardless of how bad of an idea this is, people still do it, which is one reason why so many people are in so much debt. Credit cards aren't free money - they're basically a small loan - and loans must be paid back eventually.

4) Nothing is 'free'. You would be in continuous debt to at least one card at any given time. Plus you can get into a lot of trouble trying to do scams like that. All the creditors keep track of who owes them money, and they all communicate with each other (that is what a credit score is); so they will keep tabs on your activities.

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