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   posted: Apr. 14, 2008 @ 3:31p

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Hi,
I am a student and out of my internship, I have saved around 8k $ which are almost the money i need for paying off for my last sem but that is due in OCT.
I am planning to invest all these money in stocks in India (I am already invested but few)and pay off my last sem by applying for a new credit card with 0% APR somewhere in september and paying off my college fees using that. If things go right, by FEb 2009 I will make up 25% gains with the stocks ++ the dollar weakening rate (estimate) and use the same money to pay off the credit card bills or if i get a job, my initial 2 months of pay could help me get rid off the credit card debt and my investment would be as it is.

What do you suggest?

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   posted: Apr. 14, 2008 @ 3:36p

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ashmir said:Hi,
If things go right, by FEb 2009 I will make up 25% gains with the stocks ++ the dollar weakening rate (estimate) and ...
What do you suggest?
I suggest you consider the possibility of things NOT going right as well.

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   posted: Apr. 14, 2008 @ 3:54p

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In 2 words - BAD IDEA. There are 2 uncertainies here, first the $ to Rupee might be a push (Worst case scenerio $ Gains), and then Stock Market in India has nearly peaked (IMHO). Scenerios:

1. $ weakens, Stocks go up - Consider this as a lucky situation
2. $ Gains, Stocks go up / $ weakens, Stock goes down - Might be a push considering transferring money back and forth is not free
3. $ Gains , Stocks weaken - Oh Boy your plan has gone haywire!!! You will owe money on CC and loose money on your savings.

I WOULD NOT INVEST MONEY IN INDIA UNLESS IT IS MY MONEY AND I AM ABLE TO TAKE A LOSS BASED ON ABOVE ASSUMPTIONS.

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   posted: Apr. 16, 2008 @ 10:19a

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delzy said:Go for it. That way when things don't quite work out the way you plan, you can just pretend it's your first semester in the school of life. Cheap lesson.
or alternatively first investing lesson: don't buy high and sell low

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   posted: Apr. 16, 2008 @ 10:50a

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You have several layers of distraction in your post, but what it boils down to is this: you want to borrow more than $8000 and invest that borrowed money in a non-insured investment. If your investment tanks, you will be on the hook for whatever money you lost, and that money will probably be on a credit card at a high interest rate.


Also, to be practical, remember the standard issues that an AOR brings up: you must pay the minimums each month, missing a minimum will cause the debt to immediately begin charging a high interest rate, and for these and other reasons you should be able to pay off the 0% on short notice at any time. If you need to cash out your india investment to pay off some or all of the credit card debt, you will have to cash out at whatever the current value is, which might force you to take a loss.

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   posted: Apr. 16, 2008 @ 11:54a

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WTF? Have you been living in a cave for the past 6 months? The entire credit/mortgage/housing fiasco was caused by the same type of speculation you're considering. The dollar is at an all time low. The Indian market is at an all time high. Seriously, WTF? Please don't tell us your internship was in FINANCE.

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