Step 3: Cashing In!
Now, you have two choices. You could either take the $4,000 you have saved and pay off the card right away or you could take the next 11 months and pay off the card $366 a month. If you’re disciplined about not spending the $4,000 you have saved on something else you can earn 3%-6% interest on that money while paying off your card over the next year. Depending on how much interest you earn–you could end up with $120 to $240 left over after paying off your card. In other words your letting the credit card company finance your vacation for a year interest-free while you collect a year’s worth of interest. Not bad, huh?
But wait…there’s more!
AN ADDED BONUS JUST FOR PLAYING THEIR GAME
These days almost all cards give reward points of some kind…points that can be redeemed for travel rewards, shopping rewards and dining rewards. Even though you’re paying 0% for their money, you’re still entitled to these points. For most cards you can estimate that $1,000 spent is approximately equal to $10 worth of rewards. For example, if you have 5,000 American Express Membership Rewards Points (or $5,000 in charges), you can get a $50 gift card to several stores and restaurants. So, if you play your cards right (pun intended) you can actually add another $50 to $100 to the interest you’ve already made on the loan.
For more info on how to make free money online, check out the navigation menu above.
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