6) the bills are going on the credit card, freeing up money for savings, pensions and investments. When the credit card needs repaying I look for another zero percent deal or take from numerous savings.
Works for me. It’s sustainable, I never miss a payment or pay more on fees than what I can get in interest.
It’s cash flow - I don’t have to worry about unexpected bills or dip on stocks.
You need to think differently about debts. The mega rich don’t pay all their tax on income. They borrow money to themselves at interest rates that are lower than what HMRC would try and deduct as income tax.
You just keep saying it's cashflow, but it's not, as you have to make minimum credit card payments each month. The bottom line is for every £10k you have on a 0% card over three years - you will net just £268.58 at the end of 3 years; if, and only if, you maximise everything.
If you think it's different or you're making more money in another way, then share with us your calculations. Don't just throw percentages and tax rates around, show us the exact calculations that led you to believe that this makes financial sense (you did do that didn't you?).
Re you need to think differently about debt and the "rich borrow money to themselves"
I think you mean lend money to themselves.
The "buy, borrow die" principle often lauded by so called financial guru's on Instagram and YouTube, only works if you have sufficient unencumbered assets and if HMRC
don't consider that you are doing it as a means of income. If you are using it as a means of income, or HMRC think you are, then you will get taxed accordingly, no matter how rich you are.
For example, you you get a whole life mortgage on your property and invest the money, the amount you draw down won't be taxed. But, the money you draw down will depreciate and lose value, unless you do something with it. If you do nothing with it, then it becomes worth less than the debt, that's dumb, so you need to invest it.
If you invest it, then any income derived from that investment will be taxed.
The super rich don't really do this, it's only people on Instagram / YouTube selling you financial training courses that tell you they do.
The super rich use their assets to get leverage and acquire something that is worth more (it's potentially only worth more at a future date) than the amount being drawn. It's not debt in the usual sense, as the asset is usually appreciating and the appreciation eventually covers the debt. This is how the super rich use so called debt.
But you're not doing that, you are actually getting yourself in to real debt on a credit card for almost fuck all return, the credit card isn't appreciating, it's not asset backed, it offers no tax relief. It's probably damaging your credit rating. You're then putting that money in to a savings account that's taxed
It's you who needs to think differently about debt, because the way you're doing it does not stack up.
And, your description of how your able to pay back the monthly payments from other sources ("numerous savings"), is just "robbing Peter to pay Paul", it's all smoke and mirrors.
Show us the actual real world calculations and how they pan out
