Credit Cards
December 31, 2008
Some people say that having credit cards is bad. I feel that it is only bad if you are not responsible enough to use them properly. I say that my credit cards are for emergencies only. Many people have cards just for that purpose. But that does not mean that I do not use them from time to time. In todays world it is hard to not have a credit card. If you want to go to a concert and by tickets online you need a credit card. Many hotels require a credit card be on file just in case you trash the room or something is missing that they need to charge you for. So having a credit card is not a bad thing.
Just be responsible and ask yourself if you really need the purchase. Or if you will be able to pay it off in a short time so you do not get socked with lots of interest. Just play it safe and having a credit card is not that big of a deal. And often times you get rewards for using your card anyway.
Shopping frenzy
December 27, 2008
A day after Christmas, majority of us might received some promotional ads which promotes one day sale on discounted products on most stores. That is a pretty tempting offer, if we love to shop. With many electronic products was on sale, I wasn’t be able to resist these great offer too.
I went to Fry’s Electronic on Friday afternoon, with an ads that offer most discounted computer components. When I got there, the store was already packed with people. I always wanted to buy myself a brand new laptop computer either before or after Christmas. Today, I guess that is the best day to make my dream come true. I was intended to get a Toshiba brand, with a price of $449.99. Unfortunately, it was sold out. I couldn’t let myself walk out empty handed. So, I must get another one with a little bit pricey laptop. Under the recommendation from one of the salesperson, I got a Fujitsu, lifebook brand, which costed me $699.99. I swiped it with my credit card, which I don’t want to max it. But for the things I want, I have to use my credit card.
After this frenzy shopping, I have to cut back on my spending in the upcoming months, and days. Because I have to work extra harder to make the money to pay for my credit card, with interest. Now, I have to hide it, where I won’t use it for long, long time.
Beware of the credit card table at Wal-mart
December 19, 2008
As if shoppers at Wal-mart are not economically deprived enough (such as myself!), Wal-mart has to exploit their customers by setting up a table full of full-size goodies (and NOT healthy ones, either) such as liters of coke and packages of chocolate chip cookies. As you get in the range of the table, immediately you are approached by the worker asking if you want free goodies. Well, yeah, of course I do, but not if there’s strings attached. Naturally, I see the credit card applications on the table and want to roll my eyes. I’m a saavy shopper. I could guesstimate the APR on these are 12% at the least and they’ll throw a label on it, calling it “low”. I let her know I’m not interested as I already have a bunch of GREAT credit cards (ALL of which are 0% APR). She talks about the “low” interest rate and I proceed to tell her all my cards have 0% APR. She angrily rolls her eyes and says that is not possible. I feel like whipping out my credit card, calling the company and having the operator (in another country?) tell her that I’m telling the truth.
So I’m thinking, how many people can WM scam with their unhealthy “goodies”? Not me, that’s for sure.
Balance transfers, bad for your credit?
December 19, 2008
Deciding to take advantage of a balance transfer program from a particular credit card issuer is a lot like deciding to lease or buy a car from your local car dealer. It depends on how long you intend to carry the balance and how often you want to switch out your car for the latest and greatest model (or in this case a different balance transfer program with more rewards or more favorable interest rates).
If you carry a bunch of smaller balances with different credit companies and could potentially pay off all balances within two years, pick a credit card that fits you best and stay put. Most balance transfer credit cards offer promotional rates of one year, so transferring your debts to a new card over a period of two years will end up as more or less of a wash from an interest expense prospective, so jumping around isn’t necessarily worth it.
If you carry more debt than can be paid down in two years (or you intend to accrue more debt in the form of credit card charges) then it would be in your best interest to jump around from one balance transfer deal to another every six months or so. This has the effect of essentially resetting your interest clock with your new debt issuer and can help keep you from paying a lot of money in the form of interest expense.
Good Things about Balance Transfers
December 15, 2008
If you stick with one balance transfer credit card and pay down your balance within the window of your offer (or shortly thereafter), you will have paid down more of your principal balance in a shorter period of time.
If you move from program to program once every couple of months you avoid accruing more interest expense. Additionally, you are keeping the information on your credit report fresh more frequently, which helps keep your report accurate to your current financial situation.
Balance transfer programs may offer additional rewards, rebates or points just for transfering your balances to one program.
Banks will know if you engage in balance transfers frequently and will usually send you offers in the mail to entice you to switch. This means you’ll get lower rates more frequently and you won’t have to do as much research when your current deal expires since the banks will be contacting you directly.
Credit Card Debt into a Home Equity Loan
December 15, 2008
When you wrap up all of your credit card debt into a home equity loan knowing that the interest will be tax deductible, you have just placed your home at risk and could lose it if you fail to make your payments. Nobody ever plans not to be able to make her payments. The reason the lender uses your home as collateral is so she can take it from you if you default on the loan. As for the tax deduction, who knows whether the interest will be deductible for the life of the loan? Credit card interest used to be deductible but no longer is. Are you confident that home equity interest will always be deductible?
take control of habits
December 8, 2008
In recent years, millions of Americans are overspending by using their handy plastic card. This reckless behavior should be under control, if you don’t think that you can pay for it. It is common psychological, it will be nice to buy whatever you desire, but it will be stressful when you have to pay it back. Just think of what you can pay, and what you can’t. Don’t buy something that you won’t need.
Many people is struggling to reach the minimum payment every month. Some of them can barely pay for the minimum payment, which probably take them 42 years to pay off all the debt. Take a test. If you are a female, open your closet of clothes, and see how many stuffs that you don’t really need. If the number is too much, that indicates a problem. Try to sell those stuff that you don’t need in ebay or craigslist for some value. Then use your proceedings to pay for your credit card debt. At least, you gain something in return, to help your credit card debt a little. Take control of your spending habit. Limit yourself on shopping spree. If you have extra cash, attempt to make your payment early, and plan for the next one. Think about the money you pay for the high interest rate, instead, using on something else will be much better. If it is not an emergency, place your credit card somewhere you can’t use it. Better yet, cut it off. Take control of yourself, and don’t bury yourself in credit debt.
Credit Card credibility
December 3, 2008
Nowadays, the common and easy form of payment is credit card. It is very handy and you don’t need to bring large amount of cash to pay your dues. It is also very convenient while traveling especially out of the country. Different countries have the law of bringing limited cash to their country so, using credit card is the best option. It is also for emergengency use. If you are out of cash, use credit card because it is ideal for post payment. Not all people are ideal to own a credit card. Bank and credit card companies are very strict in choosing their members. The main qualification is that they are capable in paying. They have salary range for them to qualify. Credit investigation or profiling for the applicant were done in process to make sure that the person is eligible. Eventhough they are strict, most people desire to have a credit card because of its benefits. If you have one and have a good standing, your credibility in applying for another card in now easy. Your transaction from your card will serves as your reference for approval.
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