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Originally Posted by Xist
Northpointe has the highest interest rate on that list. The next bank has a $20,000 limit instead of $10,000.
Rich people problems.
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One of the benefits of being married is that I opened an account for my wife in addition to the account I have (which she is authorized to use). This effectively doubles the amount of money that can earn the high interest.
When you run into this rich person problem in the future, just realize you can always open another account somewhere else, so you're always earning the highest interest.
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There are always people who shuffle credit cards. I think keeping the same one for several years looks good on my credit history. The other thing is that I may not need additional student loans, but once I am back in school, I will be full-time summers and half-time the rest of the year, so my subsidized loans will not bear interest.
Whenever I can make additional payments I always make them on the unsubsidized loan with the highest interest.
In theory, I could borrow as much as possible, not pay interest on it, and earn interest instead, but that is not my way of the ninja.
Have a great day!
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Shuffling credit cards takes good organizational skill and attention, so it's probably not good for most people to attempt. Miss a payment or forget to transfer the debt to another credit card when the 0% promotion ends, and it can quickly cascade into a mess.
That said, you can shuffle credit cards without closing the old accounts. In fact, having credit cards with low utilization improves your credit score because it shows you have x amount of available credit, but are only using y % of it.
I took out the maximum amount of subsidized loans when I was a student, invested the money, and paid it back just before entering the repayment period. This is dangerous for most people because they see all the money in their bank account, and all of a sudden it becomes easier for them to justify pizza for dinner and new shoes.
In summary, my financial strategy is superior, but only for those who have the type of personality that hates spending money. I don't budget, and that's because I'm frugal and always know that I'm bringing more in than I'm spending.
Concerning money owed to the IRS, I've heard that they can be flexible on both the payment amounts, and even the amount owed (principal).