Fezmid Posted March 31, 2006 Share Posted March 31, 2006 That said, if you can't pay your credit card off in full every month, you have no business using it. I'd take that one step further and say if you can't afford it, don't buy it. Americans in general like to buy everything and live well beyond their means. If you don't have cash in the bank to buy somethijng (aside from food), then you shouldn't be buying it, credit, debit, or otherwise. CW Link to comment Share on other sites More sharing options...
Chef Jim Posted March 31, 2006 Share Posted March 31, 2006 I'd take that one step further and say if you can't afford it, don't buy it. Americans in general like to buy everything and live well beyond their means. If you don't have cash in the bank to buy somethijng (aside from food), then you shouldn't be buying it, credit, debit, or otherwise. CW 647742[/snapback] Just talked to one of my reps who met with a couple making $400k per year. Spend $20-$30 annually for their kids horses but have nothing saved for retirement. Hey, but they own four houses. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 31, 2006 Share Posted March 31, 2006 I posted something a month or so ago in the Consumer seation. Recent changes in credit card law serves to put you into the highest allowable APR if you are late with a payment - even if you don't have a balance. And as usual, they have strict rules as to when they consider your payment as received. It especially hits hard, those that transferred a balance for a lower rate. Miss that or any payment time and date by 1 minute, and your 0 or 3 5 or whatever percentage for that balance transfer becomes a 27% or so hit. Not just for transferred balances - anything not paid in full. It's ideal, not having a balance but many folks for good rersons or bad ones, do so. When you get the billing - minimum payment, balance, or whatever, put it into the mail tommorow or the next day. They are waiting to nail you to the wall. 647682[/snapback] Providian used to be reknown for that crap. Paid off the card in full...they held the check until it was a day late, then charged me a $40 late fee and interest. Paid that in full the day I got the bill...they held it again and charged me another $40 late fee. Finally WIRED them the money so they couldn't argue they didn't get it on time, and cancelled the card. They did the same thing to my brother, except they tried to charge him a $120 cancellation fee. I still get checks from the class action settlements. The bottom line, though, is that while credit card companies are scum-of-the-earth, credit card debt is like most anything else: useful if used wisely, unhealthy if abused. If you're smart about money, credit cards aren't a problem. The real problem is that too many people are stupid. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 31, 2006 Share Posted March 31, 2006 Providian used to be reknown for that crap. Paid off the card in full...they held the check until it was a day late, then charged me a $40 late fee and interest. Paid that in full the day I got the bill...they held it again and charged me another $40 late fee. Finally WIRED them the money so they couldn't argue they didn't get it on time, and cancelled the card. They did the same thing to my brother, except they tried to charge him a $120 cancellation fee. I still get checks from the class action settlements. The bottom line, though, is that while credit card companies are scum-of-the-earth, credit card debt is like most anything else: useful if used wisely, unhealthy if abused. If you're smart about money, credit cards aren't a problem. The real problem is that too many people are stupid. 647905[/snapback] Well having said that, there must be a shitload of credit card debt on this board. Link to comment Share on other sites More sharing options...
SACTOBILLSFAN Posted March 31, 2006 Share Posted March 31, 2006 I work at a hotel and if you use a debit card to check in and decide to change payment types, then you may wait up to 30 days to get the funds we hold put back into your account. Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 31, 2006 Share Posted March 31, 2006 Just talked to one of my reps who met with a couple making $400k per year. Spend $20-$30 annually for their kids horses but have nothing saved for retirement. Hey, but they own four houses. 647755[/snapback] See, I would consider the houses something of a retirement fund depending on what they have purchased, where, and what they're doing with those properties. I'm not saying it's a GREAT retirement plan, but property is not a bad investment. Also, though, the question begs itself, do they at least have 401Ks or IRAs for pre-tax savings? Link to comment Share on other sites More sharing options...
Fezmid Posted March 31, 2006 Share Posted March 31, 2006 See, I would consider the houses something of a retirement fund depending on what they have purchased, where, and what they're doing with those properties. I'm not saying it's a GREAT retirement plan, but property is not a bad investment. Also, though, the question begs itself, do they at least have 401Ks or IRAs for pre-tax savings? 648237[/snapback] Doubtful. My wife (works part time for H&R Block) sees people who make $150,000-$300,000 who don't put a penny away in 401(k), IRAs, nothing, and they live paycheck to paycheck. Sad. Advice for college students: When you get your first real job, put 15% away in a 401(k) instantly. You'll be making more money than you made while in college, so if you sock it away before you even see it, you won't be able to miss it. If you're feeling really ambitious, raise the amount when you get a raise at your job. If you get a 5% raise, put an extra 3% in your 401(k). Compound interest is your friend, especially right out of school. CW Link to comment Share on other sites More sharing options...
tennesseeboy Posted March 31, 2006 Share Posted March 31, 2006 Gee I was waiting for some of the clowns from a previous posts encourage them to buy lottery tickets! Link to comment Share on other sites More sharing options...
Chef Jim Posted March 31, 2006 Share Posted March 31, 2006 See, I would consider the houses something of a retirement fund depending on what they have purchased, where, and what they're doing with those properties. I'm not saying it's a GREAT retirement plan, but property is not a bad investment. Also, though, the question begs itself, do they at least have 401Ks or IRAs for pre-tax savings? 648237[/snapback] Part of a plan, but not the sole plan. Reaons? Lack of diversification (no, no IRA or 401k), lack of liquidity (they're real esate people, getting them to sell would be hard) volotile market (remember real estate in the early 90's), major earthquake could wipe their "retirement" out, think of the expenses involed (insurance, taxes, upkeep). And people think that paying fees for mutual funds is too much but they have no problem paying the "fees" on their real estate investments. Here in CA (as you know) it's at least 1% in taxes alone and that's if you DON"T have Mello-Roos. But hey, look how much money they made on their real estate in the past 5 years. Kind of sounds like tech stocks in the 90's doesn't it. Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 31, 2006 Share Posted March 31, 2006 Part of a plan, but not the sole plan. 648407[/snapback] That's really it in a nutshell. And like you said, lack of liquidity is huge. Do you still recommend six months salary in the bank or has that rule of thumb changed? Link to comment Share on other sites More sharing options...
Chef Jim Posted March 31, 2006 Share Posted March 31, 2006 That's really it in a nutshell. And like you said, lack of liquidity is huge. Do you still recommend six months salary in the bank or has that rule of thumb changed? 648418[/snapback] Not salary...fixed expenses. Really depends on the person though. When I was in the rest biz I could find another job in 3 hours. But some people are in very specialized jobs that may take 12 months to find replacement work. Think of your own situation being self employed. How's your disability situation? Maybe we should talk. I'll be at Auntie Gerts.....be sure to get me before my second Absinthe. I'll have you investing in shamrocks after that. Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 31, 2006 Share Posted March 31, 2006 Not salary...fixed expenses. Really depends on the person though. When I was in the rest biz I could find another job in 3 hours. But some people are in very specialized jobs that may take 12 months to find replacement work. Think of your own situation being self employed. How's your disability situation? Maybe we should talk. I'll be at Auntie Gerts.....be sure to get me before my second Absinthe. I'll have you investing in shamrocks after that. 648433[/snapback] I have extensive disability insurance on my partner and myself, in addition to a crapload of life insurance. In fact, I'm in final edit of my Will and Trust, and it isn't really until you do something like that that you realize how much or little you have, and how much thought goes into distributing it. I COULD use a decent lamb chop recipe for tomorrow night, though. Link to comment Share on other sites More sharing options...
Pete Posted March 31, 2006 Share Posted March 31, 2006 Providian used to be reknown for that crap. Paid off the card in full...they held the check until it was a day late, then charged me a $40 late fee and interest. Paid that in full the day I got the bill...they held it again and charged me another $40 late fee. Finally WIRED them the money so they couldn't argue they didn't get it on time, and cancelled the card. They did the same thing to my brother, except they tried to charge him a $120 cancellation fee. I still get checks from the class action settlements. The bottom line, though, is that while credit card companies are scum-of-the-earth, credit card debt is like most anything else: useful if used wisely, unhealthy if abused. If you're smart about money, credit cards aren't a problem. The real problem is that too many people are stupid. 647905[/snapback] capital one did the same thing to me. I !@#$ing hate Capital One and all credit card companys for that matter Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted March 31, 2006 Share Posted March 31, 2006 Well I think using a debit card in much smarter than using a credit card. I spend money I have and not money I don't. I don't pay interest for my card. Once you've seen the credit card debt I've seen with some clients you'll know why. 647232[/snapback] That's my line of thinking. The risks are far greater creating excessive debt than they are having a bad charge on a debit card. Link to comment Share on other sites More sharing options...
Fezmid Posted March 31, 2006 Share Posted March 31, 2006 That's my line of thinking. The risks are far greater creating excessive debt than they are having a bad charge on a debit card. 648499[/snapback] Why not just treat your credit card like a debit card and have the best of both worlds? Link to comment Share on other sites More sharing options...
apuszczalowski Posted March 31, 2006 Share Posted March 31, 2006 In the drive throughs around here, you don't get to see the register at all. They tell you how much it costs, you give them a card, they give you the card and a receipt back. Don't be so quick to judge My wife's been burned several times by them accidentally processing the card twice. If it were the bank/debit card, do you think you'd ge tyour money back? Doubtful. With a credit card, I simply send an email to Citibank )or Chase) telling them about the mistake, and the charge disappears. CW 647737[/snapback] Is the original guy who posted what you quoted Canadian? Here in Canada the Debit Card (or ATM card) can be used in the bank machines or at a store that has debit machines and is linked tou your savings or chequing account. When you go into the store to purchase something they swipe your card in a machine and had you a keypad you have to use to accept the charge (it shows you the amount the have from the register) and you have to accept it before moving on. Then you pick your account type and have to put in a PIN number. I thought I heard the american debit machines were different but not 100% sure. In Canada, a Debit card is like having all your money in your account with you. Its safer then carrying cash since they atleast have to know your PIN # and account type to use it where as cash is pretty much untracable if stolen from you. Thats why i rarely carry cash with me and just use my debit card since if I lose my wallet or it gets stolen I'm not out a ton of cash And most fast food restaurants around here take Debit now (at first it was just in store, now they have it in the drive throughs) but they don't take credit cards. I think a McDonalds around here does and the KFC's take credit too. Link to comment Share on other sites More sharing options...
taterhill Posted March 31, 2006 Share Posted March 31, 2006 I buy everything in Gold boullion(sp?)..man my wallet is heavy Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted March 31, 2006 Share Posted March 31, 2006 Why not just treat your credit card like a debit card and have the best of both worlds? 648590[/snapback] Sometimes it isn't that easy. Loads of people can't handle that financially. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 31, 2006 Share Posted March 31, 2006 Sometimes it isn't that easy. Loads of people can't handle that financially. 648600[/snapback] The credit card industry doesn't help much, either. One of the reasons I dropped Providian is that they sent me $40k of preprinted "courtesy" checks on a $5k credit limit...as though to say "PLEASE...go over your credit limit and pay us the fees!" I could easily see people getting those and spending them all the way to bankruptcy court out of sheer ignorance. And then there's the company that raised the credit limit on my Visa to $1 million (yes, that's right, a million dollar limit on a credit card) despite my protests. "Tough. We're giving you a million dollar limit." Interest alone would have been $160k/year. I kept it that way for a month, just to get the statement showing the limit, then told them "Okay, now lower it down to something sane." Link to comment Share on other sites More sharing options...
meazza Posted March 31, 2006 Share Posted March 31, 2006 The credit card industry doesn't help much, either. One of the reasons I dropped Providian is that they sent me $40k of preprinted "courtesy" checks on a $5k credit limit...as though to say "PLEASE...go over your credit limit and pay us the fees!" I could easily see people getting those and spending them all the way to bankruptcy court out of sheer ignorance. And then there's the company that raised the credit limit on my Visa to $1 million (yes, that's right, a million dollar limit on a credit card) despite my protests. "Tough. We're giving you a million dollar limit." Interest alone would have been $160k/year. I kept it that way for a month, just to get the statement showing the limit, then told them "Okay, now lower it down to something sane." 648624[/snapback] you gov't contractors must make a lot of money Link to comment Share on other sites More sharing options...
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