Interest rate on a CC probably is around 15-20% right now. Unless you’re the virtual stockstrader, you are probably not doing 15-20% right now. Plus, your assumption in buying commodities that that your rates are going to rise less or at least in line with inflation. Question, is that if dollar weakens and we see another 10% inflation, don’t you think your 20%+ APR now is going to go up as much as well?
You’re third option would be to just walk on your CC debt. But unless they change the bankruptcy laws, you don’t get a clean pass on CC debt, and frankly not sure if you want to go down that route over a few thousand, unless you can manage to take hundreds and thousands from multiple CC’s.
If you wanted to do something like this, pick a loan that that rates aren’t crappy…I was contemplating taking a Heloc at 2.5% and use it to pay your 5-6% primary loan.
