A Detailer's Worst Enemy

Spilchy said:
You've been listening to that guru on the radio too much.



IMHO, there is nothing wrong with a credit card, rather, everything wrong with the person who lacks the self discipline and control to act responsible with it.



I have had the same card since I started college, lived within my means, paid it off in full each month and built up my credit.



If I need to make a large purchase (once in a while) and not pay it off at the end of the month (rather, over 3 months), I call the cc company and they lower my interest rate considerably. It was 6.xx% the last time I did it. Normally I could care less what it is, b/c I pay off in full each month.



I remember my father bought a new car in 1992. If he was able to put 40% down in cash, he would have a 0% interest rate for the life of the car payments. He jumped on it rather than laying out all the cash at once.



My folks have cashed in airline miles accrued on the cc and flown to countries around the world. So using a cc has its benefits for things like that and a whole host of other things.
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You would have to admit that you are the exception, not the rule though right? :D



I know plenty of people who can handle the responsibility of a CC, but with the average household in the U.S. carrying $18,000+ in CC debt, you can definitely make a case for not using them.



The reason I made the statement above was because of the "vibe" I got from the OP about the "itching for the rims..." I have just seen a lot of my friends piss away a lot of money in their mid to late twenties becasue they were careless with CC during college.



Accumulator, thanks for the advice, that makes perfect sense. :D
 
:) well since I originally posted this...I do what I do best...lol I created an excel database for the next three months...wrote down my expenses and money left over. By April 28 I will have the money to purchase everything on my list...even have $900 available for rims...however...tires are another story :o Glad to see this post is evolving the way it is...There is alot of useful information/tips/warnings that helped me alot. I cant believe the figure you gave ebcivicsi...$18,000 in credit card debt. wow...It's times like this where I am glad my mom and dad don't use their credit card hardly ever.



I may look into this check card also...Is it only made by Visa?
 
You guys should be racking in on CC companies like Citi. They paid me $70 to spend money. And thats with no interest as I pay everything in full at the end of the month. 5% cash back on gas is wonderful.









Chan
 
JMHO, FWIW. I suggest to anyone with a CC to use it wisely. Pay it off every month, if possible, so that you don't pay someone else for the use of money. Only carry a balance if you need something to make you money. Find a CC that pays you something to use it, like air miles if you fly, or cash back. I suggest that folks not use a cc to buy things that they want, but don't really need and don't have enough savings to pay for. Wait until you have the means to pay for it, then buy it. A CC is useful for travel so you don't need to carry a lot of cash.



I know someone who has CC problems. When she got in too far and overspent her limit the CC company would raise her limit. They did this several times until she was forced to go into bankruptcy. The minute she was out of bankruptcy she started getting CC offers in the mail. Seeing that she failed to learn from he first go with them, she did it again.



The CC companies don't mind at all. The only time they lose is when you pay off the CC balance in full each month. They love for you to carry a balance and pay them interest. They don't even mind if you go bankrupt as they use the loss as a tax write off, and never bother to show up at the bankruptcy proceedings.



And as Scottwax points out, cash advances not only usually come with a higher interest rate but many CC companies also charge a 3-5% fee for that cash advance.



I wonder why schools don't teach students personal financial management 101. The young people are more and more the ones being targeted by the CC companies. In fact they hire students on the campuses to distribute CC application info around the campus for them.



Credit Cards...use them wisely or you may wish you had never owned one. The gal I was talking about tried to buy a new used car and was denied because of her credit score. Now she rides the bus.
 
My generation is known is the P-Generation (To pay with plastic)



Im sure we will be seeing lots of people having financial troubles in the years to come....It's too bad that some people will never learn. I'll be sure to keep you guys updated on how it goes with mine. I really wish I would have gone for the kind of card which rewards me, like cash back on gas. :(
 
The trick is to save at least one months of expenses that way u can pay your bills when they are due and not have to wait till your last 2 checks of the month to have spending money. Write out a budget, how much comes in and how much your fixed expenses are and you will get a feel for how much is left over for "fun stuff" and savings. Record all your spending for a month or two to make sure you are not spending more than you are bringing in and soon you will get a feel for how "much" you can buy and spend in a given month without borrowing from the credit card. I charge EVERYTHING, but pay it off every month. I don't buy what I can't afford and by doing this I get point perks and also can track my spending better than if I paid in cash. Hope this helps
 
Chan said:
You guys should be racking in on CC companies like Citi. They paid me $70 to spend money. And thats with no interest as I pay everything in full at the end of the month. 5% cash back on gas is wonderful.
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Exactly. Credit cards aren't evil, a lack of planning/control is. I use credit cards for just about everything, even like a $2 purchase of a 1/2 gallon of milk at the grocery store. Why? Because why not have my money working a few extra weeks for me, and why not get some rewards back on the purchase. Plus I have *much* more recourse in the event of a bad purchasing experience. I don't have to constantly visit the bank or ATM's, or carry around a checkbook.



I earned about $2k off the final price of our Aurora, we earn free Blockbuster movie rentals all the time, free movies and CD's, you could earn free gas, free airline tickets, whatever floats your boat. And I never pay a dime extra for the ability to do this.



Credit card companies do make money off you if you pay your balance, though. They only reimburse the vendor about 98% of the charge. Though I'm sure the big money they make comes from people carrying a balance.
 
Joshua312 said:
I may look into this check card also...Is it only made by Visa?
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I dunno, mine is a VISA and that's what you see the ads for all the time. Talk with somebody at your bank, it's just another way of transfering money to/from your checking account. Handy when you need cash since cash machines are everywhere. But note that you get charged a little something if you use a cash machine that's not operated by *your* bank ;)
 
I wonder why schools don't teach students personal financial management 101. The young people are more and more the ones being targeted by the CC companies. In fact they hire students on the campuses to distribute CC application info around the campus for them.
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There is too much money to be made off the masses to be teaching this!!
 
ebpcivicsi said:
I have just seen a lot of my friends piss away a lot of money in their mid to late twenties becasue they were careless with CC during college.
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Oh, believe me, my friends too! I have one friend who has $25k in cc debt and $125k left in student loans from college, then law school then business school - all in a row.



But don't blame the credit card, blame the person. We live in a society now where people pass off and deflect the blame on to others (buying rims with no job) for their own ineptitude.



So credit cards are great. It's the person controlling the credit card that's the problem.



Its like guns. Guns in the hands of responsible people make for a great sport and hobby. Guns in the hands of morons or criminals are the problem, not the gun. If it was, then we should ban a lot of other things that people can't be responsible with like alcohol.



My point is, it isn't the object of discussion that is the problem but culture we live in that breeds the individual who abuses that object of discussion; in this case, credit cards. Until the person and/or culture is addressed, cc companies will continue their marketing to rope people in.
 
Be very careful with that card.. it is so easy to abuse it!



The sweetness of using the credit card turn sour when the bill comes in! :soscared: :cry: :werd:
 
Spilchy said:
Oh, believe me, my friends too! I have one friend who has $25k in cc debt and $125k left in student loans from college, then law school then business school - all in a row.



But don't blame the credit card, blame the person. We live in a society now where people pass off and deflect the blame on to others (buying rims with no job) for their own ineptitude.



So credit cards are great. It's the person controlling the credit card that's the problem.



Its like guns. Guns in the hands of responsible people make for a great sport and hobby. Guns in the hands of morons or criminals are the problem, not the gun. If it was, then we should ban a lot of other things that people can't be responsible with like alcohol.



My point is, it isn't the object of discussion that is the problem but culture we live in that breeds the individual who abuses that object of discussion; in this case, credit cards. Until the person and/or culture is addressed, cc companies will continue their marketing to rope people in.
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This is kind of a unusual topic for my first post on a detailing forum, but I think you're right on.



Credit cards can be an excellent means of purchase when in the hands of responsible individuals. I know some who use a CC for gas, groceries and online purchases and pay it off entirely every month. They have excellent credit, no annual fee, almost unlimited spending limit, and even get something like 5% "rewards" on gas and 3% on groceries. Credit cards make a lot of sense for financially respnsible people.



But CC companies wouldn't be around if they didn't make a boatload of money from inexperienced or irresponsible people. I've seen cards being offered on college campuses with over 20% interest. As long as you stay on track, though, a credit card will serve you well, hleping you establish good credit and stay on top of your spending habits.
 
Gee, by now you have gotten a ton of advice, a whole lot of it is good advice. You can decide which path is the best for you.



All I would say is that the decisions you make you will live with, in the long run.



Financial respsonsibility is a very tough thing to learn, but it is a virtue once you learn.



Best wishes in that department!
 
I like the one tactic I heard on the radio the other day to avoid impulse purchases with a CC. Put it in a bowl of water and stick it in the freezer. It'll be there if you really need it, but in a solid block of ice so it's a PITA to get out for impulse purchases.
 
I love my plastic, a heck of a lot cleaner than money ;)



On a serious note I only use it for gas and online ordering which is mainly detailing products. All the times I order something I usually give my mother the money in advance for the transaction, my card is under her name.



As long as you have the money to backup your purchase in advance, there should be no problem, lots of people have a hard time figuring that out though. :think:
 
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