Yet another financial question

[Jean]

Still here, just let some of you guys battle it out

Anyway, yep I already cut a few cards and my resolution is to pay them off as soon as possible. I've always had CCards ever since I remember getting my 1st job, so I am not new to them but should cut down on the number of them.

Funny you guys mention the debit card vs. credit card, honestly I use my debit card sometimes 5-10 times a day and experienced first hand what happens when it gets stolen. It was actually worse, the card was never lost, but (it's numbers) was used 100+ miles away to purchase $500+ worth of gift certificates at a grocery store. Yep, that money was out of my account for 2 weeks until Wells Fargo investigated (said it most likely was cloned WTF), closed my account and then issued another card. Plus, with Debit card if you got bill pay and everything else setup it screws up everything. With CC, if that ever happens it's a much much smoother process. So CC wins here in my eyes.

Also, like many said, there are many perks to having good credit and cards with benefits etc. Unless you are made out of money it's impossible to purchase a house in California w/o credit lol. The key is drawing a line on when to stop using plastic etc... so it just makes it more difficult to get out of it.

My original post was to find out if the service was legit or if it screws you up more than it's worth .

That's my new years resolution , for sure.

[Turf1600]

If you're worried about credit just maintain $100 on a card or 2.

[thectrlguy]

Regardless - you guys are obviously set on using debt. Whatever works for you - i guess. But cash is safe and I can grow cash. I guess there are minor perks to using a credit card - but I don't think it's worth the risks for most people. I like having cash - and I like watching my cash grow. Also, all the dave ramsey stuff isn't just debt - it's growing wealth without borrowing. It's working very nicely for me. I also like not getting bills from my bank.

I don't think there's any way you can tell me I'm doing things all wrong.

You are an idiot... period.

Explain This:
You: Pay for everything in cash
Me: Pay for everything with Visa, pay every statement on time and IN FULL.

Tell me how your method, versus mine "grows" cash.... Explain that, and I'd even buy on of those crack head books you're reading. On top of that, I've flown at least 14+ times (for free) with my "perks" twice to Europe, with the wife.... let me know what your debit card does for you.

You don't like getting bills from the bank? how old are you?

Step 2: Forget the idea of taking out a line of credit in order to pay off debt. I can understand the logic behind this idea - amass all the totals of debt into one and pay off at a slightly lower rate. However, you're still stuck in the vicious cycle....taking on debt to pay off debt

It makes perfect sense, you reduce your "total" liability.... makes sense to me. What's important here, is the fact the original poster, is unhappy about his situation.... this, based on his honesty, and the fact he's clearly unhappy about his situation, would stand to reason he's not about to perpetuate the vicious cycle.... the first step is the hardest... I would think he's on the right path.... why not take every measure possible to reduce your cash out of pocket....

What perpetuates the cycle, is people with 5+ credit cards, using one to pay the other, and "thinking" by some divine act of god, they are "staying" ahead of the game...

And?

Someone steals your CC info and runs up a shitload of charges, you call your CC company, dispute it, and they kill the charges - you've got no out of pocket charges.

What sort of perks & incentives do you have on your debit card? Does your debit card give you 6% back on gas & food? Does your debit card give you frequent flyer miles?

Based on your "credit cards are my enemy" statement, and your rote verbatim quoting of those godawful Dave Ramsey suckerbooks, I'm willing to bet that you couldn't handle a credit card, and already fucked yourself over pretty well once, haven't you. You seem a little hurt & gunshy.

-Charlie

Finally the voice of reason.

[Turf1600]

The different is my plan has zero risks. It's the safest financial plan possible.

[thectrlguy]

Keep reading your brainwashing books.... what risk am I taking?

EDIT: You keep going on about your "plan" but have nothing to back it up....

EDIT: So you use your debit card, get nothing for it.... but take "no risk".... I use my Visa for everything.. and get free flights, and assume less risk if my card gets stolen...

How does your plan work again?

The different is my plan has zero risks. It's the safest financial plan possible.

[Turf1600]

You're breaking it down so precisely that according to you - the only difference is that you get free flights. With my credit union I get back $$$ instantly if fraud has occurred. I'm pleased with the fact that I never owe anything to anyone. As soon as my house is paid off - all I will owe is utilities. Imagine the spending power. Credit cards are dangerous and you know it. I'm by no means brainwashed - I do what makes me comfortable. I have zero regrets and am extremely satisfied with my finances.

And you asked how old I am - I'm 22.

[rwh11385]

Do you even know what a line of credit is?

EDIT: Thank god you aren't my account manager....

psloan is just a moron.

Jean, you closed 2 accounts? How old were they? it's bad for your credit history if you closed a credit card account too soon (2 years??) so just fyi in the future just shred the card and remind yourself to close it down the line.

just stop using your cards altogether if you can't handle spending money you don't have just because you "can". you can't spend cash you don't have

OR be like that one retard from TN and screw the "credit" system completely and go off the grid parting 240s in your driveway...

[Turf1600]

This thread is proof positive that marketing and aggressive advertising works wonders. Tell me - if all you get is free stuff from these credit card companies - how do they stay in business?

[rwh11385]

One thing a lot of people don't understand is that closing out a credit card account actually hurts your credit. The reason? For every card you close that is one less resource you can tap if you need to when things get really tight. When banks look at offering you a loan they look at all available liquid assets you have and unused credit cards is considered a good thing. One other thing is keep your balances less than 50% of the credit limit on each card. This will show creditors that you can be financially conservative and not spend every penny you get and then some.

already mentioned although i repeated it, +1 on knowing credit.
and ask to bump your limit even if you never use it. (the idea is to keep a small % of possible balance, with a big limit - ideally)

Another Credit Myth - You need credit

Name 1 thing you need credit for that can be considered essential.

OMG, the anti-credit people are multiplying!

Not everyone lives your lifestyle man. Just because you don't go to school

Haha, solid point. To psloan student loans are a silly debt to get into...

It just dawned on me... where you've been getting your "material" from...

Dave Ramsey called, he said thanks for buying his self help book... then he laughed..

So he read a book and thinks he knows all of life's answers, what an asshat.

[DrMcDave]

the real key is not to buy things you can't afford. Too many of us buy things anticipating that we will make more money in the future to pay off the bills. national saving is actually negative now due to credit cards sucking us dry on payments.

I think that snowball method sounds pretty good i'd go with that. Its gratifying when you pay one off then on to the next. I have been on a mission to get out of school debt. I only pay about 25 dollars over what i owe per month but my interest rate on my school loan is 1.9 percent (you can't get this anymore as far as i know) but the amount i owe is dropping quicker than i had imagined.

[rwh11385]

Someone steals your CC info and runs up a shitload of charges, you call your CC company, dispute it, and they kill the charges - you've got no out of pocket charges. Someone steals your debit card info, runs up a shitload of charges, you're out that money in the bank. You call your bank, they will get around to investigating it, and will probably eventually reimburse you, however, you're out that cash in the meantime. They'll take 10-15 business days to work through it. You like having a wiped out acct for 3 weeks?

What sort of perks & incentives do you have on your debit card? Does your debit card give you 6% back on gas & food? Does your debit card give you frequent flyer miles?

Based on your "credit cards are my enemy" statement, and your rote verbatim quoting of those godawful Dave Ramsey suckerbooks, I'm willing to bet that you couldn't handle a credit card, and already fucked yourself over pretty well once, haven't you. You seem a little hurt & gunshy.

-Charlie

Haha. Murdered him bro.

+1
But one of the kids in my class had a dumb waitess at BW-3's add two decimal places to his tip and it fucked up his checking account (overdraft) and even though he had plently of money in his savings account, he couldn't transfer money in or use it to pay rent for weeks. Sounds like a fucking PITA that could have been avoided with a credit card.

[Turf1600]

already mentioned although i repeated it, +1 on knowing credit.
and ask to bump your limit even if you never use it. (the idea is to keep a small % of possible balance, with a big limit - ideally)


OMG, the anti-credit people are multiplying!


Haha, solid point. To psloan student loans are a silly debt to get into...


So he read a book and thinks he knows all of life's answers, what an asshat.

Do you have a problem with my paying cash for school? Yeah - I'm anti credit. Ironically, I'm actually willing to put money on the fact that I have a higher credit score than any of you guys. I've read quite a few of financial books - and I do like ramsey's plan the best. It is applicable to everyone and luck is not a factor. Most of the rest are rather self indulgent - with the exception of the millionaire next door.

[Turf1600]

the real key is not to buy things you can't afford. Too many of us buy things anticipating that we will make more money in the future to pay off the bills. national saving is actually negative now due to credit cards sucking us dry on payments.

I think that snowball method sounds pretty good i'd go with that. Its gratifying when you pay one off then on to the next. I have been on a mission to get out of school debt. I only pay about 25 dollars over what i owe per month but my interest rate on my school loan is 1.9 percent (you can't get this anymore as far as i know) but the amount i owe is dropping quicker than i had imagined.

Sound advice.

Edit - How long is your term? Check your amortization tables and it will become clear why it's moving faster than anticipated. Also pre payments go towards principal only - but are added to the end of your term.

[Turf1600]

Haha. Murdered him bro.

+1
But one of the kids in my class had a dumb waitess at BW-3's add two decimal places to his tip and it fucked up his checking account (overdraft) and even though he had plently of money in his savings account, he couldn't transfer money in or use it to pay rent for weeks. Sounds like a fucking PITA that could have been avoided with a credit card.

Could have been avoided with cash also.

Heeter - chime back in when you live in the real world and have a real job. It's all easy when your parents cover your ass and your student loan is deferred. Real finance is not synonymous with beer money or tacking parts onto your pink car.

[rwh11385]

You're breaking it down so precisely that according to you - the only difference is that you get free flights.

Screw free flights. BMW Financial gave me free money. Spend $150 in December and get $50 credit (only pay back $100).

Would I have spent $150 on booze and bar tabs without this evil marketing scheme (yeah, it would have just been on another card).

Mother pays off Sisters' housing with Discover card and gets money back (i.e. costs less) since she doesn't get as many scholarships as myself... oooooh, once again free money - it's so evil.

Tell me - if all you get is free stuff from these credit card companies - how do they stay in business?

They make money off idiots that spend money they don't have, rather than people who are responsible and use credit cards to their advantage.

Do I spend more with my GAP card than I do with cash? No - I hardly remember if I have it on me or not until at the register... but do I get free $10 off or 10% off cards in the mail? Yes. Does this to encourage me to spend more than I previously was planning? Not really - it just reminds me I could use more pays of boxers since your wife tore mine off.

I am sorry you are too afraid to use credit cards or take any risks. Please spend the $3 on a box of aluminum foil so you can make yourself a nice little hat while you are at it. I am also sorry you life is so pathetic and boring you try to be a hardass know-it-all because you read a Dave Ramsey book and think you're cool because you are scared of a 3" x 2" piece of plastic.