We're very fortunate in this country for a liberal bankruptcy law, at least for when it comes to taking this kind of risk.
Now, this kind of risk won't work as well in this economy. Credit cards have severely curtailed their introductory rates. However, in 2002-2007 I knew people who augmented their income multiple times by this same arbitage and putting the money in low risk investment vehicles. Once the intro rates were finished, they would pay back 100% and close the card, moving on to the next one.
The credit card reform act will make this more difficult in the future.
Now, this kind of risk won't work as well in this economy. Credit cards have severely curtailed their introductory rates. However, in 2002-2007 I knew people who augmented their income multiple times by this same arbitage and putting the money in low risk investment vehicles. Once the intro rates were finished, they would pay back 100% and close the card, moving on to the next one.
The credit card reform act will make this more difficult in the future.