Ranting on my auto loan
July 31, 2008
Not loans are created equal, and that is the tough truth I learned today. Just to share with you, I got a lump sum from the company I work for to be used to buy a car. As I canvass for the car that suits my need, I centered on one that is fuel efficient and would not cost me a lot – a subcompact. The car costs about $12,500 here in our country, and the lump sum I got is about $10,000. I was initially tempted to put the $10,000 in stocks, but I will not risk my money versus the declining trend in stocks. Oil could have been an opportunity, but I am a bit new with commodities. (But that is another story!)
Anyways, so what I did was get an auto loan to cover for the shortage and plan to do pay by lump sum in the hope of having my loan restructured, either shortening the loan term from four years to three years or reducing the monthly amortization dramatically. But in our country, such scheme only applies for housing loans. What happened then to me was that my lump sum was treated as advance payment for the next two years. Too bad I did not clear it with the loan officer. At any rate, I am now free to pay the loan in 24 months and by the time I resume payment, the monthly amortization will be smaller against my monthly income. Now that’s a good thing!
Balance Transfer
July 31, 2008
I just finished watching the news and there was a segment there about paying up your credit card debts. I think the information given by the banker was really helpful, and some people might have overlooked the idea.
So, here’s the thing. There’s this regular employee who has a credit card with 42% annual interest rate. So, the 10,000 that she owed when she bought items for her home increased to 100,000 because of the interest rate. Up to now, she still hasn’t paid the debt in full. So, the banker said that she could do “balance transfer”.
What she has to do is she should find another bank that offers lower interest rate on their credit cards. Use the credit card to payoff the previous loan. In effect, she will have to pay lower than the total amount to be paid to the other bank.
While this move might help you in paying off a credit card debt, it still would not erase your bad credit score. So my take on this, buy only things that you can afford.
E-Statements
July 17, 2008
I just recently subscribe to an electronic statement of my card. Before I was thinking if this feature of credit card is safe or not. I was really hesitant cause I don’t want to blame myself when the time comes so I do some researches and even ask some people who had applied thier cards to this e-statments too. Due to the conviction that this e-statements were safe to use since none of those whom I asked told me any bad experiences from it, I also subscribe to it.
Now I can say that I am beginning to like this feature cause I can check from time to time my card transaction and I no need to wait for the post man on the delivery of my card statements. I can now even check my statements whereever I am. I just need to enter my password and the security PIN that the card compan tha gave me and that’s it.
E-Statments really is one of the best way to track trnasactions whenever, wherever!
An Insight About Credit Card
July 17, 2008
I am loving this site now! It has lots of good advices and information about credit cards that one should know. The card holders must really have time to read the post here cause most card holders gave their time just to share thier insights and experiences about the different credit card company. I myself love the articles on balance transfer cause I often use that option when I am not having having enough funds to pay for a certain transactions that I had made with the cards. Balance tranfer should really be thought of and must always be paid on time properly cause once you failed you’ll only double the possibility of having more interest than the principal. Also one card holder must really have to consider all his earnings before using a card never spend more than what you earn. That was the best lesson I got here.
10 Things You Might Not Know About Credit Cards
July 11, 2008
Here’s some helpful information on credit cards… clears up some confusion about using unsigned cards, and extra charges for expected tips.
5) Merchants Cannot Charge A Surcharge For Using A Credit Card, However, They Can Offer A “Cash Discount”
You may have noticed that gas stations are starting to offer a different, higher price for credit cards. This isn’t technically allowed— unless it is marketed as a “cash discount.” In other words, if you fill up your car and find that you’ve been charged more than advertised because you paid with a credit card — that’s not allowed. If, however, you decide to pay with cash because you saw an advertised “cash discount” to the “regular price” — that’s ok. A subtle distinction, but an important one.(There is something called a “convenience fee” that some institutions are allowed to charge if they do not typically accept credit cards in their normal course of business. The example VISA gives is a utility company where the customary way is to pay by mail or in person. The rules for charging this fee are somewhat complicated and there are loopholes, etc.)
Via Credit Cards: 10 Things You Might Not Know About Your Credit Card
Credit Card Handling
July 10, 2008
Credit cards have it pros and cons. Once have it you must know the good and bad side of having it. Many of those who have this has no knowledge of the entire usage of thier cards. That leaves them to a big debt and even to misery in life.
I have known some people who have mismanaged thier credit cards that ends to having almost over a million debt. Though their credit limit was just a praction of it. While I also known some who have managed thier cards well enough.
Once you had your credit card be able to determine what willbe its function to you. Once you have set its function then you better stick on to it so you will not find yourself looking and finding other ways just to pay your bills.
You must also try to maintain on the credit limit or much better spend the amount were you can afford it to pay without any hassles. This is were many people goes wrong. They see thier credit cards as thier extra money to buy stuff that are not important to them. So better know which is important and which are not.
Once you use your credit card start to save some money to pay for your bill. In this way it will be easy to pay the bill when it arrives your mailbox. Don’t think about the salary that is about to come before the due date cause it will only put you more in using the cards so often.
Try to minimize the use of your cards. If you can try to use it when your cutoff date has past so that you have more time to save for the bill.
These were just some few tips that I have tried and it was effective to me. I just taught of sharing this to everyone to help them in the proper usage of their credit cards.
Just remember, credit card purchases were not free so better be careful on it.
Collection Agencies
July 6, 2008
I have been religiously paying for my credit card balance these past few months. However, last June, due to unavoidable circumstances, I have not been able to pay but I have noted to myself that I will resume paying again as soon as I get my paycheck.
After that, I have been receiving calls again from collection agencies. They once again resumed calling my office, which is useless because I rarely go there because I work from home. They also call at home and started threatening me again. I calmly spoke with them and explained the situation. They made me feel like I was running away from my financial obligations and even wanted me to pay the full amount at a specified date. There was no way I can do that and if only I have the money, I would have paid the credit card company a long time ago so as not to incur additional charges and for me to experience all of the hassle.
When our conversation ended, I explained that I have already made payment arrangements and it was just unfortunate that I failed to pay for June. I just told them that I’ll pay as soon as I have money. Sigh. It was really a hassle and I promised myself that after I pay off my balance, I’d never get a credit card again. Ever.
