Crazy MBNA offer

The_Tax_Mans_Cash_Machine

M_Thomson wrote:

I don't get what you mean. First of all, he is saying he wants to increase his limit to 20K! Hopefully he won't put that all in shares. Second of all, the £400 you propose putting into shares. If you lost everything you would be £400 down. So why are you saying it will be replaced by what is in his ISA?

Yup,
that's exactly what I'm going to do. £20K in shares. I've been investing for a while & have a couple of tasty morsels I'm wanting to put more cash into (I already have £20K in them, £6K of which is profit). One is RC Group (RCG - results out on 26th - watch it fly (currently c.60p)) & Character Group (CCT - make the Dr Who toys that are selling like hot cakes - results out in October (currently c.73p)).

I reckon each one will be up by at least 10% & maybe 20% over the next 6-8 weeks, so at that point I'll sell them & pocket the £2k-£4k profit from MBNA's £20K.

Then I'll stick the £20K into something else & repeat until June 1st 2007.

The_Tax_Mans_Cash_Machine

A_Nice_Englishman wrote:

Don't forget the share dealing costs. £10 to buy and £10 to sell (which is cheap) is 5% of £400 so the shares would have to increase in price by that much just to break even.

& don't forget stamp duty at 1.5%.

A_Nice_Englishman

Good luck TTMCM.

Warning to novice investors:
TTMCM can either afford to repay MBNA from elsewhere if the value of the shares goes down or is prepared to go into debt on his credit card.

Don't borrow money to buy shares if you can't afford to repay it if you make a loss

The_Tax_Mans_Cash_Machine

A_Nice_Englishman wrote:

Good luck TTMCM.

Warning to novice investors:
TTMCM can either afford to repay MBNA from elsewhere if the value of the shares goes down or is prepared to go into debt on his credit card.

Don't borrow money to buy shares if you can't afford to repay it if you make a loss

Thanks ANE.

I will be able to afford to repay it if it all goes wrong, I'm expecting some money end of October, & I wouldn't advise buying shares on credit either.

For me it's the right thing to do. 0% credit for 10 months is very good leverage.

The_Tax_Mans_Cash_Machine

I thought I'd update this so that you could have a laugh if I crash & burn!

I've initiated part 1 of my master plan:

Payment protection cancelled (after next statement);
Monthly DD reset to minimum instead of paying all of the balance.


I have decided though not to increase the limit to £20K. It's high enough already & I can take up to 95% - £15K should be more than enough.


Part 2 is to buy the shares, but I wont be able to do that 'til the payment protection is removed from my account at the end of the month. I'll keep you all updated.

Bbwaahhahahahahaahaaaaaaaaaa! (evil laugh)

Mastini_2

remember your minimum payment each month on the card will be GBP450.

david_hellier

Assuming, of course you can afford the repayments, buy Premium Bonds. But please if you do any such thing watch MBNA like a hawk and make no slip ups or you'll pay dear.

The_Tax_Mans_Cash_Machine

david_hellier wrote:

Assuming, of course you can afford the repayments, buy Premium Bonds. But please if you do any such thing watch MBNA like a hawk and make no slip ups or you'll pay dear.

Hello all.

I'm not trying to make you think I'm indecisive (:D), but I've now increased the Credit limit so that I can access £20K.

I've set the DD so that theres no slip up with monthly repayments, & I plan to shift the money into my account, then into shares ASAP.

If I should die whilst attempting this death defying feat, then please feel free to have a good chuckle. I should have known better.

Remember me to your children & grandchildren as the man who bravely took on the system & lost [sob]

Toto

Well, I am certainly the type who likes a punt now and then, even risky ones... this is a lot more risky than I would ever consider (£10 on a 3 legged donkey is about my limit lol).

As you have set the wheels in motion all that's left to say is good luck, I really do hope it pans out for you. And if it doesn't at least you will have a great how I got into debt story... it will be up there with the car mats! But, do try to be a bit careful, don't get carried away. I want to see an 'I told you so story' from you in july.

Brassic

Wow, it makes my blood run cold just thinking about it!

Good luck though!