Put the plastic down and back away slowly (918 hits)
Category: GeneralRating: 2 on 28 reviews (Rate this item) (V)
Submitted by Phate (View user info) at 2005-02-22 03:58:05 EST
While doing some random searches thru Uber I came across a post from over a year ago from munkeypants detailing her own personal hell that she has gone thru with her credit card companies (http://www.ubersite.com/m/34350)
So, being as I am a cog in the evil machine known as Visa I thought that I would post a few things that most people should know about credit cards (and although I thought most people knew them already) after speaking to many a cardholder, apparently, an alarming number of you do not.
To those of you that are going to be coming to the magical age where you are going to college/'university and you see the kiosks for people offering freebies to sign-ups, don't stop.
Unless you are being bankrolled by your parents or have a part-time job, credit cards are not your answer, go get a student loan, and learn to budget it, because you don't really want to have to run to your parents to bail you out.
Next and more generally, to anyone that is carrying a balance on their cards, call your card company and ensure that you already obtaining the lowest APR (Annual Percentage Rate) that they offer. If you are not, transfer you card to that other product. You will never earn enough Airmiles to be able to make it worthwhile to carry a balance @ 19.5% (or higher) vs. 10% (or lower)
Check your bills each month. I can not overstate how important it is to make sure that what you get a bill for is actually what you spent. You typically have 30 days from the statement print date to call to dispute a charge. You do not want to be the guy that opens his statement after one year to find out you signed up for 1 years worth of Adult porn at 39.99 per month just because you wanted to get shits and giggles for watching a 2 min clip of a women fucking a donkey (don't laugh, I talked to that guy... ok laugh.. I did, although he did not think it was funny)
The only way to remain interest free is to not take cash advances or write cheques (balance transfers are also interest bearing) and make sure you pay in full by the due date. If you can't pay in full, pay as much as you can and lessen the load for the interest.
The banks/credit card companies are not there to be your rich uncle, your friend, your pal, they are there because they are in the business of making money, which they do extremely well, they will not hesitate to tack on late fees, over-limit fees, interest fees, annual fees, cash advance fees, returned cheque fees, any kind of fee you can think of. If you don't pay on time, you will get a black mark on your credit history, another late, another mark, making it harder for you to borrow, and almost impossible to obtain the lowest interest rate that you need in order to help you clear things up and get yourself back on track.
If you say "Fuck them, I just won't pay at all", they don't really care too much about it; they just ruin your credit history for a typical period of 6-8 years, and sell your account to an external collection agency for a percentage of what you owe. They get some money for it and you have the vultures after you and no way of borrowing other than hitting up your family.
Do always call around to other card companies and see what they have available and compare to what you are getting, you always have to remember that YOU are the only one looking out for you. Be careful of the fine print, make sure you always read it and understand it before agreeing to anything.
In short, you bank/card company is not there to be your friend, or to help you out with repayment if you get too far over your head, they are there to make money, plain and simple, nothing evil about it, just coldhearted, but has big business ever been accused of being kind?
Feel free to -2 me, I know I can't write well, and I am well aware that the material is dry.
Just felt like forewarning those who were unaware.
Cheers.
User Reviews
Submitted by RyuFu (user info) at 2005-09-09 12:55:23 EDT (#)
Ranking: 2
I knew most of that already, but it is definitely worth letting people know about. I can add one as a corollary to the list:
If you work for a financial institution (as I do), get their credit card and don't sign up for any of that "rewards" crap. With all the high APR's on those programs, you might as well buy it yourself. I believe my APR is...hold on...:::checks online:::...%7.5.
Amen.
Submitted by Airstream (user info) at 2005-06-23 11:52:28 EDT (#)
Ranking: -2
No Comment
Submitted by r1nce (user info) at 2005-02-23 01:05:31 EST (#)
Ranking: 2
No Comment
Submitted by EbolaMay (user info) at 2005-02-22 16:23:00 EST (#)
Ranking: 2
Yes. And watch your fucking wives, for the love of God. If they're anything like my ex's, they're out there spending on it, without telling you a goddamned thing about it.
YOU STUPID GREEDY MONEYWHORING SLUTS!!!!
Submitted by Phate (user info) at 2005-02-22 16:09:49 EST (#)
Ranking: 0
Submitted by tidalfae (user info) at 2005-02-22 12:17:05 (#)
Ranking: 2
Not all people who don't pay off their credit card are stupid. I worked my ass off through college, got a ton of student loans, and was doing ok. Then I got sick. Who's going to pay for that? My credit card. I need books for physics class? The credit card. And before you berate me and say that textbooks are 'unnecessary expenses', take into account that I spent countless hours at the library copying hundreds of pages from bio textbooks, because I couldn't afford the $200 bucks a pop. I bought maybe 1 book for every 3 I copied.
2 years later and here I am with credit cards to pay off. Can I pay off my balance in full every month? NO! Does that make me a bad person, or at least a bad spender? No. Half my money goes to rent/bills/ etc. Another third goes to my student loans. ANother 6th goes to visa. That leaves me with about 200 bucks a month for food and any meager fun I can scrape out of life.
Would I trade in my college education for a debt free life right now?
Hell no. Because in 10 years I will still have my education. Education is an investment. My roommate's parents wrote out a 37,000 check to the university each year. I paid a different way. But 30 years from now no one is going to be able to tell the difference. The only difference will be between the people who make the early sacrifice and those who dont.
It's worth it.
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Not trying to berate anyone here tidal, obviously not every single person is going to fit into the mold that I have cut here, you are not a bad person for getting sick. I am just trying to give a helpful guide as to what not to do with your credit. If it can be helped.
Submitted by A-Daamage (user info) at 2005-02-22 13:22:34 EST (#)
Ranking: 2
Yes, it should be obvious. Credit cards aren't magic tickets for free money, they are tools to help purchasing higher priced items conveniently, without having to carry large sums of cash around as well as providing the opportunity to make reservations at hotels, buy plane tickets, etc. Just because you CAN indulge with a credit card doesn't mean you SHOULD. Use a little common sense and willpower and you'll be just fine.
Submitted by c1ndy (user info) at 2005-02-22 12:37:55 EST (#)
Ranking: 2
I finally pay of my student loans next month (i am 28, i started uni at 18) learned my lesson with credit and store cards a few years ago- far too tempting so I just have a debit card now.
really good advice.
Submitted by tidalfae (user info) at 2005-02-22 12:17:05 EST (#)
Ranking: 2
Not all people who don't pay off their credit card are stupid. I worked my ass off through college, got a ton of student loans, and was doing ok. Then I got sick. Who's going to pay for that? My credit card. I need books for physics class? The credit card. And before you berate me and say that textbooks are 'unnecessary expenses', take into account that I spent countless hours at the library copying hundreds of pages from bio textbooks, because I couldn't afford the $200 bucks a pop. I bought maybe 1 book for every 3 I copied.
2 years later and here I am with credit cards to pay off. Can I pay off my balance in full every month? NO! Does that make me a bad person, or at least a bad spender? No. Half my money goes to rent/bills/ etc. Another third goes to my student loans. ANother 6th goes to visa. That leaves me with about 200 bucks a month for food and any meager fun I can scrape out of life.
Would I trade in my college education for a debt free life right now?
Hell no. Because in 10 years I will still have my education. Education is an investment. My roommate's parents wrote out a 37,000 check to the university each year. I paid a different way. But 30 years from now no one is going to be able to tell the difference. The only difference will be between the people who make the early sacrifice and those who dont.
It's worth it.
Submitted by Phate (user info) at 2005-02-22 11:34:44 EST (#)
Ranking: 0
Submitted by funk_boy (user info) at 2005-02-22 05:30:56 (#)
Ranking: 2
I feel a little annoyed that someone is telling me this, it seems obvious. But i had to be bloody careful and work my arse off to get through university, and i guess there are plenty of people who COULD do with this advise. I think i'll send this to my little brother.
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The sad thing is funk that this sort of information should be obvious, it should be instilled into people by their parents, and to be honest with you, I think that there should be some kind of a credit card quiz, complete with answers that is sent to all new clients along with the answers.
I have had the pleasure of speaking to people who ask "Why does not card not work?"
"Well sir, you have not made a payment since September, it is now February" "
or the classic of the person who is at their limit, and wondering that why if they made the minimum payment, does their credit limit not reset?
Don't be that guy with credit cards people.
Submitted by Unabonger (user info) at 2005-02-22 10:16:58 EST (#)
Ranking: 2
No Comment
Submitted by jgreening (user info) at 2005-02-22 10:10:52 EST (#)
Ranking: 2
Sadly, I had to get this talk from a credit counseling service about 6 years ago.
Got 2 CC's at/around my 18th birthday, both maxed around $5,000.
Maxed 'em both out in something like 3 months.
Finally paid them off early last year, I think...
So now, ALL I have is my debit card. And I had to ASK my bank to NOT give me the "emergency credit" line in case I spend more than I have.
I still have "catasrohpy credit" for my car needing fixed, robbery, etc etc, which is nice, though.
Submitted by Rocktsrgn (user info) at 2005-02-22 10:05:41 EST (#)
Ranking: 2
Submitted by TheSpook (user info) at 2005-02-22 09:52:22 (#)
Ranking: 2
I find it amazing how stupid people are with money, or numbers for that matter.
I pay my bill off in full EVERY month. Makes it easy on my wallet.
____________________________
Ehh... People aren't stupid. Just misinformed. They don't always think about the consequences, or they think that it will be no problem down the road. Some of us (read: me) are lucky enough to have financial responsibility pounded into their heads when they are pretty young.
God, I'm such a geek. Why am I camping on this, of all posts?
Submitted by TheSpook (user info) at 2005-02-22 09:52:22 EST (#)
Ranking: 2
I find it amazing how stupid people are with money, or numbers for that matter.
I pay my bill off in full EVERY month. Makes it easy on my wallet.
Submitted by Rocktsrgn (user info) at 2005-02-22 09:36:07 EST (#)
Ranking: 2
Woo hoo! I'm feeling much better about my finances now. I graduated from college last year, and I'm recently debt free! One hell of a year, but worth it.
Congrats to me.
Submitted by CaptainThorns (user info) at 2005-02-22 09:28:13 EST (#)
Ranking: 2
AMEN BROTHER.
I'd also like to add: don't even mess with student loans. Just save money until you can afford to go without borrowing money to do so. (Or be really nice to your great-aunt until she croaks and hope you're in the will to collect inheritance!)
Ideal budget for each paycheck:
10% to savings
10% to church tithe or charity of choice - contribute back into your society!
80% to live on (food, mortgage/rent, other bills, etc.)
OK, I'm done.
Submitted by Teephphah (user info) at 2005-02-22 08:44:39 EST (#)
Ranking: 2
This is all good advice, and luckily my wife has known all of this since birth. (Somehow the paper-route and all the other piddly little jobs my parents made me work to learn "fiscal responsibility never quite panned out.) The only thing I would add would be this . . .
The author made a passing comment about "just go get a student loan. . ." Well, yes and no. Make sure that you ONLY take out as much money in student loans as you absolutely NEED. Then, when they send you their little notices saying "You owe X amount in interest, you can either pay it now or have the interest added to the principle of your loans," PAY THE FUCKING INTEREST NOW!!! I don't care if you have to rob a nursing home. PAY THE FUCKING INTEREST NOW.
I took out more loans than I really needed, so that I could live in a manner to which I had become accustomed (or better, actually), and that was a bad idea. Then I chose to put off making ANY payments on the interest until I was in "real" loan repayment land. That was another big mistake.
Learn from my mistakes folks. I'm in loan repayment hell for a long, long time.
Submitted by BludKake (user info) at 2005-02-22 08:29:23 EST (#)
Ranking: 2
Another tidbit: if you make it through college without ever using a credit card, your student loan company will be happy to loan you money for cars, etc., at a much lower interest rate. Of course, this means being broke while a student, but that's nothing new.
Submitted by Jeanneee (user info) at 2005-02-22 08:21:00 EST (#)
Ranking: 2
I've made lots and lots of mistakes with credit cards. As a result, my credit rating is now permanently fucked. HE SPEAKS THE TRUTH, PEOPLE - credit cards are evil, and if you aren't careful they will ruin your life.
Submitted by DeathJester (user info) at 2005-02-22 06:22:17 EST (#)
Ranking: 2
*Writes Stin a cheque for £15000 and puts it in a wine bottle*
"If you can get that cheque out of the wine bottle you can have it! Two rules, though... Firstly, you can't touch the bottle, and secondly you can't break the bottle. Ok? Go for it!"
I awoke 45 minutes later with green broken glass sticking out of my forehead.
Submitted by Stin (user info) at 2005-02-22 06:05:25 EST (#)
Ranking: 2
If you have $30,000 in your back pocket you'd like to pay off my debts with Rad, I'd be very appreciative...
:o)
Submitted by rad1101 (user info) at 2005-02-22 05:31:56 EST (#)
Ranking: 2
£15,000?
OMG thats liek $1,000,000 US!!!!!!!
Submitted by funk_boy (user info) at 2005-02-22 05:30:56 EST (#)
Ranking: 2
I feel a little annoyed that someone is telling me this, it seems obvious. But i had to be bloody careful and work my arse off to get through university, and i guess there are plenty of people who COULD do with this advise. I think i'll send this to my little brother.
Submitted by Feijuada (user info) at 2005-02-22 05:25:56 EST (#)
Ranking: 2
I will take this lesson to heart. Perhaps my father should have. For a poor landscaper who didn't work in the winter, he still thought it was a good idea to go to Brazil for about a month at a time every winter instead of at least working. He's in debt up to his eyeballs now, due to other idiocies (married a woman with two kids when he can't afford to pay for my clothes,. My mother takes care of that) and he'll probably never get out.
Submitted by Davros (user info) at 2005-02-22 05:10:11 EST (#)
Ranking: 2
It is strange how many people forget that Credit Cards are not "Free Money".
I have been there myself, but have managed to finally extract myself from the debt I ran up at University.
The problem as I see it is not that they prey on students, it is more that the credit limits they set tend to be ridiculously high.
Example.
My card initially had a £600 limit.
I didn't really use it much, maybe £50/60 per month and I always paid it in full.
I then had to pay a £500 deposit on my new place, which I paid using my card.(While I was waiting for my Student Loan to clear).
I again paid it in full.
When my next statement came through, they had raised my limit to £8,000. Despite the fact that I had no income.
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The trouble came later, but that is a different story.
Listen to this guy, don't run up debt's on Credit Cards.
-Dave
Submitted by Stin (user info) at 2005-02-22 04:52:34 EST (#)
Ranking: 2
As someone who came back from uni owing £15,000 without even THINKING about my student loan and is still paying off those kind of debts, for Gods sake LISTEN TO THE MAN!
Submitted by Merlina (user info) at 2005-02-22 04:41:13 EST (#)
Ranking: 2
No Comment
Submitted by DonovanMD (user info) at 2005-02-22 04:18:23 EST (#)
Ranking: 2
Well written. Americans typically save .02% of their annual income. Canadians save 4%. While the Chineese who make an average of 61 cents a day, save 43%. Step back, dont jack up your card and realise that you can still live a comftarble lifestyle with just a little less.
Submitted by rad1101 (user info) at 2005-02-22 04:15:23 EST (#)
Ranking: 2
I still tell the fuckers to fuck the fuck off.
Fuckers.