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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Spinoff to Credit Card Rate increases....
Does anyone find this practice to be close to "loan sharking"? I can't believe that it is an acceptable practice for banks to increase their interest rates to 20+% and why isn't anything being done to regulate this?
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Posted 4/9/09 9:42 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Spinoff to Credit Card Rate increases....
I totally agree. It's legal loan sharking.
part of the deregulation of the banks. I wonder how they got past the audits with these practices.
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| Posted 4/9/09 10:41 AM |
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Phyl
R.I.P. Sweet Mia ♥
Member since 5/06 28918 total posts
Name:
The Mystical Azzhorse! ™
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Re: Spinoff to Credit Card Rate increases....
It makes me grateful I have ZERO CC debt! 
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| Posted 4/9/09 10:43 AM |
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Shopaholic921
SUP..
Member since 10/05 5113 total posts
Name:
Brooke
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Re: Spinoff to Credit Card Rate increases....
This is complete BS! I got my increase letter yesterday and the rep I spoke to when I called with questions was a complte a$$hole! Telling me banks need to survive, and I've had this "low" rate since '05 now and it's time I get an increase...
who the f are you to tell me I deserve an increase?
Does anyone know if there's a place you can go to complain about this? I mean in the market we are currently living in, this is NOT going to help people from loosing their houses and supporting their families... this is making the problem worse..
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| Posted 4/9/09 10:47 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Spinoff to Credit Card Rate increases....
I'm thinking about a letter to the attorney general. I don't know where to start with this but I'm angry about this.
These banks got bail outs. Let go of thousands of people..execs got bonuses. They need us to survive...our taxes and our interest.
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| Posted 4/9/09 10:56 AM |
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k-diggity
stay classy.......
Member since 6/08 1332 total posts
Name:
: )
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Re: Spinoff to Credit Card Rate increases....
I believe there is some type of regulations that to be in place 2010 not sure of the specifics but I think part of it was the application of your payment to your highest percentage on the card first?
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| Posted 4/9/09 11:27 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Spinoff to Credit Card Rate increases....
Posted by shamrock124
Does anyone find this practice to be close to "loan sharking"? I can't believe that it is an acceptable practice for banks to increase their interest rates to 20+% and why isn't anything being done to regulate this?
No because it's in the terms and conditions that the rates can vary anywhere from 5.99% (or whatever their lowest rate is) to 29.99%.
There is nothing surprising here so I don't see how this can be loan sharking? That is assuming of course you read the terms of your credit card agreement.
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| Posted 4/9/09 12:05 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: Spinoff to Credit Card Rate increases....
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
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| Posted 4/9/09 12:10 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Spinoff to Credit Card Rate increases....
Posted by ave1024
Posted by shamrock124
Does anyone find this practice to be close to "loan sharking"? I can't believe that it is an acceptable practice for banks to increase their interest rates to 20+% and why isn't anything being done to regulate this?
No because it's in the terms and conditions that the rates can vary anywhere from 5.99% (or whatever their lowest rate is) to 29.99%.
There is nothing surprising here so I don't see how this can be loan sharking? That is assuming of course you read the terms of your credit card agreement.
I'm talking in general terms, not personally. This was a news item this morning and I really think it's a despicable practice. The report was that credit card companies were raising APRs for those customers that don't pay their balance in full at the end of each month.
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| Posted 4/9/09 12:24 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Spinoff to Credit Card Rate increases....
Posted by shamrock124
I'm talking in general terms, not personally. This was a news item this morning and I really think it's a despicable practice. The report was that credit card companies were raising APRs for those customers that don't pay their balance in full at the end of each month.
I'm sorry but if people actualy READ the fine print of their credit card terms, they can't honestly say this is despicable practice.
It states very clearly in the CC terms that rates can vary and the bank has the right to adjust these rates as they so please. So if you are a customer that carries a balance, you should know that your rate can be jacked up at any time they see fit.
By signing the back of that card, you are agreeing to these terms and conditions. Whether a customer wants to actually READ the terms and conditions, that's their perogative.
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| Posted 4/9/09 12:44 PM |
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MrsFab
this is bliss.......
Member since 10/08 1234 total posts
Name:
Mb
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Re: Spinoff to Credit Card Rate increases....
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
i couldnt agree with you more- its so easy to throw everything on the card- especially with getting points, miles, or whatever- but within a couple months you can really get yourself into ugly debt
we use our debit cards alot and I even think thats bad- somehow ripping out a credit card for a $200 purchase at ann taylor wouldnt make me flinch- but bet your life if I used cash, I wouldnt think of spending near that
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| Posted 4/9/09 12:48 PM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: Spinoff to Credit Card Rate increases....
Posted by ave1024
Posted by shamrock124
I'm talking in general terms, not personally. This was a news item this morning and I really think it's a despicable practice. The report was that credit card companies were raising APRs for those customers that don't pay their balance in full at the end of each month.
I'm sorry but if people actualy READ the fine print of their credit card terms, they can't honestly say this is despicable practice.
It states very clearly in the CC terms that rates can vary and the bank has the right to adjust these rates as they so please. So if you are a customer that carries a balance, you should know that your rate can be jacked up at any time they see fit.
By signing the back of that card, you are agreeing to these terms and conditions. Whether a customer wants to actually READ the terms and conditions, that's their perogative.
I kinda took the OP to mean that it's despicable that the cc companies CAN do this, not so much that the customers read/don't read or agree to these terms. Obviously, if you want to have a credit card, you HAVE to agree to their terms, but the point is that it's crazy that they can get away with charging THAT much, you know?
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| Posted 4/9/09 12:50 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Spinoff to Credit Card Rate increases....
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
But, if you pay off your CC each month, you can get a card that gives you money for spending. My Visa and my Discover give me a percentage back for using it. Since I never pay any interest, it would be silly of me NOT to use my CC. I'd be throwing money away by using cash.
It takes discipline to do that, but if you can discipline yourself to using cash, you should be able to discipline yourself to paying off the CC each month.
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| Posted 4/9/09 12:50 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Spinoff to Credit Card Rate increases....
Posted by MrsQ-in2007
I kinda took the OP to mean that it's despicable that the cc companies CAN do this, not so much that the customers read/don't read or agree to these terms. Obviously, if you want to have a credit card, you HAVE to agree to their terms, but the point is that it's crazy that they can get away with charging THAT much, you know?
But again... what is so despicable about the CC companies being able to do this? CC companies are also taking the risk that this debt is UNSECURED debt. If you don't pay it, they are out that money. Unsecured debt is naturally going to carry some of the highest interest rates around.
I cannot find this practice despicable because customers are AGREEING to this.
Yes if you want a CC you have to agree to their terms. But you also don't HAVE to carry a balance. You also don't have to bank with that particular bank. You can take your business elsewhere.
I can't blame the banks here.
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| Posted 4/9/09 12:55 PM |
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MrsFab
this is bliss.......
Member since 10/08 1234 total posts
Name:
Mb
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Re: Spinoff to Credit Card Rate increases....
Posted by ave1024
Posted by MrsQ-in2007
I kinda took the OP to mean that it's despicable that the cc companies CAN do this, not so much that the customers read/don't read or agree to these terms. Obviously, if you want to have a credit card, you HAVE to agree to their terms, but the point is that it's crazy that they can get away with charging THAT much, you know?
But again... what is so despicable about the CC companies being able to do this? CC companies are also taking the risk that this debt is UNSECURED debt. If you don't pay it, they are out that money. Unsecured debt is naturally going to carry some of the highest interest rates around.
I cannot find this practice despicable because customers are AGREEING to this.
Yes if you want a CC you have to agree to their terms. But you also don't HAVE to carry a balance. You also don't have to bank with that particular bank. You can take your business elsewhere.
I can't blame the banks here.
i think the problem is that there is a serious lack of financial education in this country- hardly anyone explains to kids/adults how to use credit. I honestly think it should be taught in school.
however, the banks are certainly taking advantage of the economic situation- a girl posted on liw that she called her cc and was trying to get the apr lowered because she was out of work and always on time with her payments- instead of working with her- a good customer- they decided to slash her credit limit
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| Posted 4/9/09 12:58 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Spinoff to Credit Card Rate increases....
Posted by MrsFab
i think the problem is that there is a serious lack of financial education in this country- hardly anyone explains to kids/adults how to use credit. I honestly think it should be taught in school.
however, the banks are certainly taking advantage of the economic situation- a girl posted on liw that she called her cc and was trying to get the apr lowered because she was out of work and always on time with her payments- instead of working with her- a good customer- they decided to slash her credit limit
You are right about that. And while this may sound harsh... I can't blame the banks. I blame uneducated customers. Use the internet. Do some research. Read some financial blogs. Thats how you learn!
And yes calling a bank and speaking with a credit analyst can most definitely trigger them to cut credit limits. Bank Of America is notorious for doing this right now.
Like I said above... this is unsecured debt. They are trying to minimize their risk. It's not like a mortgage where you forclose and the banks get the house if you don't pay, or the car if you don't pay your car loan. They don't get squat if you don't pay your 30k credit card debt.
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| Posted 4/9/09 1:01 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Spinoff to Credit Card Rate increases....
hey man, it's capitalism. 
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| Posted 4/9/09 1:01 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: Spinoff to Credit Card Rate increases....
Posted by GoldenRod
But, if you pay off your CC each month, you can get a card that gives you money for spending. My Visa and my Discover give me a percentage back for using it. Since I never pay any interest, it would be silly of me NOT to use my CC. I'd be throwing money away by using cash.
It takes discipline to do that, but if you can discipline yourself to using cash, you should be able to discipline yourself to paying off the CC each month.
I agree, we use our CC like cash. In all the years we have had CCs we have never carried a balance and at the end of the year we get a few hundred $$ back and with another card I put big purchases on and when I have enough I cash in my points for gift cards to places like Home Depot or toys r us....
But I think the whole point is we really need to focus our lives on being debt free(this excludes mortgages and car loans etc)...meaning dont spend more than you can afford
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| Posted 4/9/09 2:38 PM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: Spinoff to Credit Card Rate increases....
Posted by Kelly9904
But I think the whole point is we really need to focus our lives on being debt free(this excludes mortgages and car loans etc)...meaning dont spend more than you can afford
I agree - I hope once we pay off our debt, we will not charge up the cards again. Of course, sometimes it's beyond people's control (in cases where for example, people get laid off, or there are medical bills or something like that that has to be charged), but it would be great for everyone to aim to live within their means (me included).
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| Posted 4/9/09 3:03 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: Spinoff to Credit Card Rate increases....
Posted by MrsQ-in2007
Posted by Kelly9904
But I think the whole point is we really need to focus our lives on being debt free(this excludes mortgages and car loans etc)...meaning dont spend more than you can afford
I agree - I hope once we pay off our debt, we will not charge up the cards again. Of course, sometimes it's beyond people's control (in cases where for example, people get laid off, or there are medical bills or something like that that has to be charged), but it would be great for everyone to aim to live within their means (me included).
That's what I mean about being cash based. Too much temptation with cc, and I'm still trying to teach my DH to be more financially responsible. his motto is 'you only live once' and my retort is usually 'preferably not in debt'.
I have had an Amex card since my early working days when it was a charge card (not credit), use it like I would cash.
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| Posted 4/9/09 3:16 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Spinoff to Credit Card Rate increases....
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
I would really think long and hard before using your home equity to pay off credit cards
it's another reason the economy is the way it is today
IMHO - home equity should only be used to improve your home- making it more valuable
with the way the housing market is- I wouldn't want to pull the equity out of my house for anything that wasn't going to add to the value of it
plus you are going to have to pay closing cost to re-fi
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| Posted 4/9/09 3:23 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: Spinoff to Credit Card Rate increases....
Posted by Beth
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
I would really think long and hard before using your home equity to pay off credit cards
it's another reason the economy is the way it is today
IMHO - home equity should only be used to improve your home- making it more valuable
with the way the housing market is- I wouldn't want to pull the equity out of my house for anything that wasn't going to add to the value of it
plus you are going to have to pay closing cost to re-fi
I bout over 10 years ago when the market prices were low and the interest rates were on a downturn, so I've got a relatively small mortgage. The value of my co-op has more than tripled since my original purchase and the interest rate is much more favorable now, at least 2 points lower.
I'm not doing anything concrete until I look at the numbers and figure out what is best for me without overextending myself.
DH brought a lot of debt into our marriage. I'm the one with the good credit and the co-op is mine, bout long before I met him. I'm no angel, I've got some cc debt too because of DH, but I've got a strict budget that we follow to pare down the debt.
eta : Thanks for the lookout !
Message edited 4/9/2009 3:47:09 PM.
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| Posted 4/9/09 3:46 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Spinoff to Credit Card Rate increases....
Posted by Beth
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
I would really think long and hard before using your home equity to pay off credit cards
IMHO - home equity should only be used to improve your home- making it more valuable
Or you can simply look at it this way.
You should NEVER pay off unsecured debt with secured debt
This should be refinancing and debt consolidation rule number 1.
Never use a HELOC or cash-out re-fi to pay off credit card debt. You are literally HANDING the banks a piece of collateral they don't need to have.
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| Posted 4/9/09 3:51 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: Spinoff to Credit Card Rate increases....
Thanks for the advice.
I was only looking into it, and as I stated, if I don't like the numbers, I won't do it. I won't overextend myself and I certainly won't jeopardize my home.
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| Posted 4/9/09 4:06 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Spinoff to Credit Card Rate increases....
Posted by GoldenRod
Posted by SusiBee
We've got to become a cash based society again. That's the only way to go.
I'm looking into refinancing the mortgage on my co-op to include our oustanding cc debt. Then we will use cash going forward for everyday expenses. Big ticket items like vacations would be charged, then immediately paid off.
It's going to take a lot of work and effort, but IMO, will benefit DH and me in the long run.
But, if you pay off your CC each month, you can get a card that gives you money for spending. My Visa and my Discover give me a percentage back for using it. Since I never pay any interest, it would be silly of me NOT to use my CC. I'd be throwing money away by using cash.
It takes discipline to do that, but if you can discipline yourself to using cash, you should be able to discipline yourself to paying off the CC each month.
The problem a majority of people don't have discipline to do that. I know I don't so I now operate on a cash basis only.
The rates offered now are legal loan-sharking rates.
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| Posted 4/9/09 5:01 PM |
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