I still can not believe how stupid people think I am. I hope that they do not think the same of you.
What causes me to say such a thing has to do with the lame wad advertisements that come in the mail wanting me to do something extremely foolish such as take out a loan with them. The latest one came today from an 'American General Financial Services' company that thinks I am dumb enough to fall for the spiel that I can end the Credit Card Hassle by locking in fixed monthly payments and APR with them. They are even so kind as to let you pick a monthly payment due date that works best for you.
Thankfully they no longer hide the worst of it though there is the ever present small print, it just isn't as small as it used to be. So in big bold letters they tell me that my payment will be $156.31 per month for a loan of $5,150 (a strange number to be sure)for 48 months at (now get this) 19.85% APR. Who in there right mind would even consider a deal like this? People very hard up that haven't learned any better that's who and that is why I hope you are never in a position to do anything but laugh at the joke and the company that sends these out.
Now if that wasn't bad enough, they have the wonderful asterisk that refers to the note of small print at the bottom, this one at least is big enough that even I can read it, which might have been a mistake because it just adds to the insanity, so here goes.
"*Not a guaranteed offer. All loans subject to our normal credit policies. Rates and terms advertised are for very well-qualified borrowers and require collateral. Rates will vary based on individual creditworthiness and loan size. Rates will be higher for unsecured loans. Reply by..."
Can you believe anybody besides the government would have the gall to make you such an offer? What kind of fool do you take me for? How did you get my name and if you bought it off a list I want a cut to cover the abuse.
This is not the first offer from them nor the first from companies like them but I seem to be in the zone for these kinds of offers lately. Another one that came recently was a very official looking tri-fold envelope where you rip off the edges just like an official government notice. It had a picture of the statue of liberty on it, the words 'Form 1008-S Payment Reduction Notification' in the upper left corner and a warning that there is a "$2,000.00 Fine or 5 Yrs. Imprisonment or both for any person who interferes with or obstructs delivery of this letter or otherwise violates - 18 United States Code 1702 et seq. Advertisement - Newsletter". Pretty scary stuff...so I immediately handed it to my wife to open.
I saw it coming a mile away. It was more crap, an offering to do a refinance with them compete with many goofy references to the economic stimulus act which I had trouble following because I tend to read things a little more carefully than the next guy. The small print did indicate that it was a legal advertisement (aren't they all) and that "Schroeter Law Group is not sponsored or affiliated with you current lender (no edit check here) and this advertisement is not authorized by your current lender and your loan information was not provided by your current lender." I guess not since the name they used was not my current lender, nor were any of the amounts listed.
By the way, they go to the county recorders office and buy this information from our local public officials thereby having access to your name and address if you have bought or sold or refinanced a house recently. Again, we should somehow be able to stop this at the source, or at the very least get a cut back for a referral fee.
The last one I will mention came from a Dorcy Law, whoever that is, and I only find that out by their slightly referred too web address at the end of the letter. The rest of the letter came with the same illusionary mentions of the Obama Administration's Homeowner Affordability and Stability Plan of 2009 but nothing much else to go on. I say illusionary because I don't recall in all the hoopla and media hype about the stimulus packages passed and/or talked about, that an actual name was placed on an actual program actually instituted by the government, let alone any details on how it would work or who it would benefit. Rightly or wrongly I probably just assumed that I wouldn't qualify to receive, I would only qualify to pay for it.
Any way, it came from the Loan Modification Division, something that surely sounds more like an office section than the name of a company but that is what they had listed in the address heading along with a Washington DC address. (Does anything good come out of Washington DC these days?) In fact, there were no other names given than mine and the name of the original lender from the court records from way back when, and the only way I found a possible real company name (or at least a tie to one) was the reference in the web address at the bottom of the sheet. The letter wasn't even signed (how hard is it to get a computer to sign its own letters, I mean really) but was closed with the words "Sincerely, Sr. Home Retention Specialist". I wonder if they felt bad about printing the 800 number to contact them based on their level of effort to remain as anonymous as possible.
I do get upset when I see these things come in the mail and almost get to the point of wanting to call them up and expressing myself to them (or at the very least play with their heads and gain a little amusement for the effort) but then I get over it and decide that it really isn't worth the effort. These people are hopeless...but I don't have to be. And neither do you. There are so many loser organizations out there currently vying for your attention that we just shouldn't waste any more time on them that we have to. Thankfully some are way, way more obvious than others. Just do me a favor and watch out. If no one falls for their nonsense they certainly won't last long.
This is Ed Nef with a view from the Farr West.
11 March 2010
19 February 2010
I got Junk Mail
Ever since I was old enough to have an address associated with my name I have been exposed to junk mail. I am not just talking about all the silly stuff they try to send you the minute you set up an e-mail account. I am sure you are all well aware of the myriad methods of spam and other loosely direct sent ads that overwhelm your in-box once your e-mail address is known. I am sure there are computer programs out there that randomly generate addresses to known server domains in attempts to find a 'live one' just so that you can receive the latest method of physical enhancement or reduction depending your gullibility.
I am rather referring to the spam e-mails ancestor, the original junk mail that travels by snail mail and arrives in the mail box located outside in a physical form that requires you to interact with it by direct physical means.
I actually like this form of advertisement. Really. It is the direct and physical nature of it that appeals to me, mainly because I can deal with it on my terms and on my time table. E-mail needs to be dealt with right now. Once opened it demands attention, mostly because if you decide to deal with it later it will sit there waiting and building up with all the other e-mail messages you have waiting for your attention. O sure you could file it into another folder, one marked 'to be read later' and let that one build up until one day you force yourself to look at them and notice that you were invited to a special party all expenses paid, for you and all your friends and close associates and all you need to do is RSVP by Friday only to find that the Friday the e-mail is referring to happened two and a half years ago.
Actually this is a good method for handling certain e-mail for your work address. It is amazing how many work assignments can get lost or company policy statements can go unread without affecting your routine daily life structure. I have found that if you quit producing a neglected and useless report and no one says anything about it for the next six months it probably won't ever be missed and your time will be better spent elsewhere. Of course if it is missed for what ever reason and it is still a neglected and useless report your time will still be better spent elsewhere. Such is the existence of a cubicle dweller, but that is another topic.
Our topic is good old fashion junk mail. Now there are some that say that you should open your mail as you receive it and deal with it immediately as a form of good time waste management. Well sometimes I am just not ready to deal with it thank you very much and hard physical mail makes that possible. If I want to wait until later to read it I can and the urgency I place on this hard mail depends on the pile I put it in and how high it stacks up without falling over or allowing me the ability to create a path around it on the floor.
Hard physical mail comes in self contained packaging other wise known as envelopes that give an indication generally of who sent it and what is in it. Here I have the ability to decide if this is something I really want to deal with right now or is it something I have to deal with right now or, or is it something I can put aside for later review.
But e-mail also comes in a form of envelope just like hard mail, I hear you say. It has an address of the sender and it even comes with a subject line to let you know what the topic of the message is. But this is where it breaks with hard mail or should I say hard mail is easier to discern. Hard mail comes with a return address that is either truthful or not and you know at a glance what you are getting. If it is from a friend they will have their address on it and you will recognize it, if it is a bill or advertisement from someone you know they will also have their address and sometimes a logo that you will recognize and know. If it is junk the return address will be none existent or a p.o. box number or other address without a name listed, or if a name is included it will be some made up funky name built to resemble someone else's name like "United States First Federal Integration Refinancing District Office". This tells you someone has something to hide and it is pretty evident right now.
Come to think of it, that is kind of what the spam mail tries to do also. The difference is that some do not list an e-mail address or some will use phony addresses. I have even received e-mail that supposedly came from myself. If they can send out spam using my own address what is to stop them from using the address of your friends. Besides we have all heard of how they send e-mail trying to pretend it is coming from your bank or credit card company in order to steal your account information. Deceiving people are deceitful no doubt about it.
Of course e-mail accounts prevent this or at least they try to prevent this with spam filters. Spam filters by the way only work a little for me. I have had more spam make its way into my in-box and more real letters make their way into my spam box than makes sense. I don't understand why it happens but it does. I think we rely on our computers too much by letting them make way more decisions for us than we should, especially seeing how often they get it wrong. Point is you can't trust them to do everything for you, you are going to have to do much of it on your own.
So our e-mail accounts have tried to develop ways to work like we use too, or at least how time management consultants tell us we are supposed to. They provided folders and sub folders to use to sort through and keep track of all our e-mail traffic. In order to sort through the e-mail you pretty much have to open it up and read it unless it is the same old drivel advertisement from emazon or am-bay telling you about the great yo-yo sale they have going this week and how they remembered that you once looked at a picture of a yo-yo so you must be an aficionado, and though you know it is junk you can't quite commit yourself to labeling all e-mail from them as junk just in case they do send you something important like a half price sale on that left-handed smoke shifter you have had your eye on, especially ones that come in your school team colors of purple and green.
So like all mail, you need to go through it and determine if there is any value to you in it and will you act on it now, later, or never. It is the 'never act on' mail that makes me glad for hard snail mail. If you get spam it is electronic. If you really get upset and want to reply to the so and so that sent you this piece of time wasting mind numbing crap the best you can do is hit the reply button and spend even more time hammering out a message to them that will fully explain in detail what you think of the piece of drivel this cretin was thoughtful enough to leave in your in-box. After much venting and fuming and fusing over just the right wording to use you hit send only to find that the address given is none functional. That's right, it is a dead address, phony or spoofed and your message goes nowhere, and all that energy that charged you up the first time around enough to want to make a reply just got recharged and still has no place to go.
Hard mail on the other hand almost always has some number or address associated with it because they are trying to get you to take action and spend money on them (especially since they spent real money on you not that cheap electronic money they use to send spam). But I have found that it is generally still a waste to get my knickers in a knot and try to make a direct reply and have found that it is much better to dispose of my frustration energy by shredding, folding, bending, and mutilating physically the item that caused that frustration in the first place. This is done directly through hands on contact. Very satisfying. Something you just can't do with an e-mail...unless you print it out, but why bother.
Later I will have to share some stories of my junk mail with you that I find amusing. I have tried to save a few from immediate shredding just because they are so over the top with stupidity. Never deal with anyone that expects you to be dumber than they are in order for the deal to work.
One more thing about hard mail that I really love. It is not a sleazy phone call from a telemarketer. If ever I have wanted to reach out and touch someone. Beyond telling them directly to put you on their "Do Not Call List" I tell them to send me what they have via snail mail. If they don't have my address I am not about to give it to them and if they have it most are not willing to send you anything by post anymore. It actually cost them something to do this and not everyone is willing to work for your business anymore. It's a shame really. It helps subsidize the US Post Office, and from what I hear they can use all the help they can get. If they do send you something you have real hard mail that might help you change your mind about them and their product or at the very least you will have something to shred.
Remember to recycle as appropriate. There is bound to be plenty of good fertilizer in there somewhere.
This is Ed Nef with a view from the Farr West.
I am rather referring to the spam e-mails ancestor, the original junk mail that travels by snail mail and arrives in the mail box located outside in a physical form that requires you to interact with it by direct physical means.
I actually like this form of advertisement. Really. It is the direct and physical nature of it that appeals to me, mainly because I can deal with it on my terms and on my time table. E-mail needs to be dealt with right now. Once opened it demands attention, mostly because if you decide to deal with it later it will sit there waiting and building up with all the other e-mail messages you have waiting for your attention. O sure you could file it into another folder, one marked 'to be read later' and let that one build up until one day you force yourself to look at them and notice that you were invited to a special party all expenses paid, for you and all your friends and close associates and all you need to do is RSVP by Friday only to find that the Friday the e-mail is referring to happened two and a half years ago.
Actually this is a good method for handling certain e-mail for your work address. It is amazing how many work assignments can get lost or company policy statements can go unread without affecting your routine daily life structure. I have found that if you quit producing a neglected and useless report and no one says anything about it for the next six months it probably won't ever be missed and your time will be better spent elsewhere. Of course if it is missed for what ever reason and it is still a neglected and useless report your time will still be better spent elsewhere. Such is the existence of a cubicle dweller, but that is another topic.
Our topic is good old fashion junk mail. Now there are some that say that you should open your mail as you receive it and deal with it immediately as a form of good time waste management. Well sometimes I am just not ready to deal with it thank you very much and hard physical mail makes that possible. If I want to wait until later to read it I can and the urgency I place on this hard mail depends on the pile I put it in and how high it stacks up without falling over or allowing me the ability to create a path around it on the floor.
Hard physical mail comes in self contained packaging other wise known as envelopes that give an indication generally of who sent it and what is in it. Here I have the ability to decide if this is something I really want to deal with right now or is it something I have to deal with right now or, or is it something I can put aside for later review.
But e-mail also comes in a form of envelope just like hard mail, I hear you say. It has an address of the sender and it even comes with a subject line to let you know what the topic of the message is. But this is where it breaks with hard mail or should I say hard mail is easier to discern. Hard mail comes with a return address that is either truthful or not and you know at a glance what you are getting. If it is from a friend they will have their address on it and you will recognize it, if it is a bill or advertisement from someone you know they will also have their address and sometimes a logo that you will recognize and know. If it is junk the return address will be none existent or a p.o. box number or other address without a name listed, or if a name is included it will be some made up funky name built to resemble someone else's name like "United States First Federal Integration Refinancing District Office". This tells you someone has something to hide and it is pretty evident right now.
Come to think of it, that is kind of what the spam mail tries to do also. The difference is that some do not list an e-mail address or some will use phony addresses. I have even received e-mail that supposedly came from myself. If they can send out spam using my own address what is to stop them from using the address of your friends. Besides we have all heard of how they send e-mail trying to pretend it is coming from your bank or credit card company in order to steal your account information. Deceiving people are deceitful no doubt about it.
Of course e-mail accounts prevent this or at least they try to prevent this with spam filters. Spam filters by the way only work a little for me. I have had more spam make its way into my in-box and more real letters make their way into my spam box than makes sense. I don't understand why it happens but it does. I think we rely on our computers too much by letting them make way more decisions for us than we should, especially seeing how often they get it wrong. Point is you can't trust them to do everything for you, you are going to have to do much of it on your own.
So our e-mail accounts have tried to develop ways to work like we use too, or at least how time management consultants tell us we are supposed to. They provided folders and sub folders to use to sort through and keep track of all our e-mail traffic. In order to sort through the e-mail you pretty much have to open it up and read it unless it is the same old drivel advertisement from emazon or am-bay telling you about the great yo-yo sale they have going this week and how they remembered that you once looked at a picture of a yo-yo so you must be an aficionado, and though you know it is junk you can't quite commit yourself to labeling all e-mail from them as junk just in case they do send you something important like a half price sale on that left-handed smoke shifter you have had your eye on, especially ones that come in your school team colors of purple and green.
So like all mail, you need to go through it and determine if there is any value to you in it and will you act on it now, later, or never. It is the 'never act on' mail that makes me glad for hard snail mail. If you get spam it is electronic. If you really get upset and want to reply to the so and so that sent you this piece of time wasting mind numbing crap the best you can do is hit the reply button and spend even more time hammering out a message to them that will fully explain in detail what you think of the piece of drivel this cretin was thoughtful enough to leave in your in-box. After much venting and fuming and fusing over just the right wording to use you hit send only to find that the address given is none functional. That's right, it is a dead address, phony or spoofed and your message goes nowhere, and all that energy that charged you up the first time around enough to want to make a reply just got recharged and still has no place to go.
Hard mail on the other hand almost always has some number or address associated with it because they are trying to get you to take action and spend money on them (especially since they spent real money on you not that cheap electronic money they use to send spam). But I have found that it is generally still a waste to get my knickers in a knot and try to make a direct reply and have found that it is much better to dispose of my frustration energy by shredding, folding, bending, and mutilating physically the item that caused that frustration in the first place. This is done directly through hands on contact. Very satisfying. Something you just can't do with an e-mail...unless you print it out, but why bother.
Later I will have to share some stories of my junk mail with you that I find amusing. I have tried to save a few from immediate shredding just because they are so over the top with stupidity. Never deal with anyone that expects you to be dumber than they are in order for the deal to work.
One more thing about hard mail that I really love. It is not a sleazy phone call from a telemarketer. If ever I have wanted to reach out and touch someone. Beyond telling them directly to put you on their "Do Not Call List" I tell them to send me what they have via snail mail. If they don't have my address I am not about to give it to them and if they have it most are not willing to send you anything by post anymore. It actually cost them something to do this and not everyone is willing to work for your business anymore. It's a shame really. It helps subsidize the US Post Office, and from what I hear they can use all the help they can get. If they do send you something you have real hard mail that might help you change your mind about them and their product or at the very least you will have something to shred.
Remember to recycle as appropriate. There is bound to be plenty of good fertilizer in there somewhere.
This is Ed Nef with a view from the Farr West.
13 January 2010
Personal rules for Credit Cards
I said that I would add my rules for a credit card company and so I shall.
1. I will pay my balance in full each month. This is the standard that you set for yourself, and the most important one at that. There should never be any reason whatsoever to carry a balance on a credit card and incur the high interest rate charges that come with it. The only reason to carry a credit card is as a measure of convenience. If you do not have the money to make the purchase, you do not make the purchase. It is that simple. You must commit to yourself that you will not spend money you do not have. If you have to finance something there are better and cheaper ways to go about it, but saving for the price in full first is the best option you can make. The credit card is only to be used in place of carrying cash or writing lots of checks or other matters of transaction convenience. It is only used to consolidate purchases so that you are writing one sum total payment check, when due, on time, in full, each month always. No Exceptions.
2. Thou shalt incur no Annual Fees. First and foremost that means no annual fee, period, exclamation point and end of discussion. The very first thing I look at for any credit card offer is disclosure on annual fee. If there is one, I don’t need to read any further for it is off to the shredder. Beware of those that claim no annual fee but adds in small print ‘for the first year’ and then they charge an annual fee after that. Only be willing to take the bite on that one if it is your fully committed intention to cancel before the year is up and then follow through. By the way, they are counting on you to forget about it so if there is the slightest chance you will, don’t take their offer. Actually even your intention isn't enough, no annual fees period.
3. Thou shalt have no charge if paid in full during the grace period. This one should be standard by now but double check to make sure that it is. If you pay the bill in full by the due date of the bill there should be no charges what so ever. If there is no grace period or there is any way to assess fees that shouldn’t be there, then drop them like a hot potato.
4. Thou shalt not pay an excessive interest rate. Even though we said that we are going to pay off our balance in full each and every month so as to incur no fees and no interest charges, you don’t want to accept a card that has a 21% or higher interest rate just on the off chance that something should go wrong. Stuff happens and when it does you want to minimize the consequences as much as possible.
5. Thou shalt pay no excess fees. This goes along with rule four. If the offer made it this far without causing you to throw it away then look at the fees and see if they look excessive. Don’t compare them to other fees in the industry to decide if they are normal charges but compare them to your own standard of what seems reasonable. If a fee seems high by your standard it probably is. Fees everywhere have been inching up on all financial services to the point that they have lost their sense of perspective and proportion. It is time to use the power of the consumer and decide not to accept unreasonableness.
6. Thou shalt ask “What’s in it for me?” Lastly and I do mean last, what perks does the card offer? My first credit card was a Discover Card back when they first came out, for one reason, they met my criteria of no fees and they paid cashback. I liked that. I no longer like the Discover Card and I will report on it in another entry. I still like to get a kickback on my purchases. There are a myriad of perks being offered these days, some are better than others so compare carefully. Many of the perk cards come with a hefty annual fee, don’t bother with them, you can do better. Some provide airline miles, some simply provide points, I still prefer cash back as it can be used on anything at any time.
7. Thou shalt not change thy spending habits. Now that you have your credit card you must not change your spending habits, only your payment habits. This is especially important if you happen to have a card that has perks. Just because the government thinks it can spend its way into prosperity does not mean you should. There is no way you can create an income for yourself by spending $100 for a $1 return, so please don’t try. You can however look for ways to use your card in places that you used to use only cash as long as there is no added fee to do so. The daily lunch run can be handled by your card rather than cash at many places fast food joints included. Grocery stores almost expect you to use a card now. I will pull mine out even if all I am getting is a pack of gum. Again, you must remember that you are not changing your spending habit to earn perks; you are only changing your paying habit to earn perks. Big difference.
8. No matter what the available credit balance is thou shalt not try to use it all. The Credit balance that is issued on a credit card is an interesting side note and nothing more. It is a ceiling amount that can easily be raised and lowered but it is inconsequential if you are in charge of your account because you will never come anywhere close to using all of it. There is usually no need. It is an artificial measuring device that the card companies use; it is not a measuring device that you use on yourself. You set your limits. Remember that you have higher standards. Just because they say you can doesn’t mean you say you can.
If you have any self control issues at all then forgo all the above and use strictly cash. Give yourself an allowance that you carry in your wallet or an envelope or whatever system you choose and live from that knowing that once that money is gone, it is gone and will not be replaced until the next allowance cycle. Until you master yourself you will not master your money but that is a whole other set of standards and tools.
One side benefit of the above, I have a monthly balance that is paid in full each and every month which reflects nicely on my credit score. The monthly balance is far less than the available credit which also helps the credit score. Do I care what my credit score is? Not really since it should be perfect but isn’t. It is the most abusive and highly inaccurate financial tool used today which makes me wonder why it is given so much power with so little oversight or liability on its part. My credit score is fairly high I am told. I know that it is just a measuring device that has become an industry unto itself. I want to live my life and have my finances such that having a credit score or not will make no difference whatsoever in my life. Contrary to popular belief debt is not the natural order of life. If you think that it is then it is time for a change of mind. You will find that life gets easier if you avoid debt.
Well there you have it. This pretty well sums up my take on credit cards. By the way, I do not have a pocket full of them. Two is usually plenty, three tops, from different companies or banks. That way you have a back up if one becomes unusable for any reason such as a computer failure on their end. It’s rare but does happen.
Just remember that this is you we are talking about. You matter. You come first. You decide the rules you are willing to play by and you decide which ones you will have nothing to do with. You are the consumer, you have the say. You live with the consequences either way.
This is Ed Nef with a view from the Farr West.
1. I will pay my balance in full each month. This is the standard that you set for yourself, and the most important one at that. There should never be any reason whatsoever to carry a balance on a credit card and incur the high interest rate charges that come with it. The only reason to carry a credit card is as a measure of convenience. If you do not have the money to make the purchase, you do not make the purchase. It is that simple. You must commit to yourself that you will not spend money you do not have. If you have to finance something there are better and cheaper ways to go about it, but saving for the price in full first is the best option you can make. The credit card is only to be used in place of carrying cash or writing lots of checks or other matters of transaction convenience. It is only used to consolidate purchases so that you are writing one sum total payment check, when due, on time, in full, each month always. No Exceptions.
2. Thou shalt incur no Annual Fees. First and foremost that means no annual fee, period, exclamation point and end of discussion. The very first thing I look at for any credit card offer is disclosure on annual fee. If there is one, I don’t need to read any further for it is off to the shredder. Beware of those that claim no annual fee but adds in small print ‘for the first year’ and then they charge an annual fee after that. Only be willing to take the bite on that one if it is your fully committed intention to cancel before the year is up and then follow through. By the way, they are counting on you to forget about it so if there is the slightest chance you will, don’t take their offer. Actually even your intention isn't enough, no annual fees period.
3. Thou shalt have no charge if paid in full during the grace period. This one should be standard by now but double check to make sure that it is. If you pay the bill in full by the due date of the bill there should be no charges what so ever. If there is no grace period or there is any way to assess fees that shouldn’t be there, then drop them like a hot potato.
4. Thou shalt not pay an excessive interest rate. Even though we said that we are going to pay off our balance in full each and every month so as to incur no fees and no interest charges, you don’t want to accept a card that has a 21% or higher interest rate just on the off chance that something should go wrong. Stuff happens and when it does you want to minimize the consequences as much as possible.
5. Thou shalt pay no excess fees. This goes along with rule four. If the offer made it this far without causing you to throw it away then look at the fees and see if they look excessive. Don’t compare them to other fees in the industry to decide if they are normal charges but compare them to your own standard of what seems reasonable. If a fee seems high by your standard it probably is. Fees everywhere have been inching up on all financial services to the point that they have lost their sense of perspective and proportion. It is time to use the power of the consumer and decide not to accept unreasonableness.
6. Thou shalt ask “What’s in it for me?” Lastly and I do mean last, what perks does the card offer? My first credit card was a Discover Card back when they first came out, for one reason, they met my criteria of no fees and they paid cashback. I liked that. I no longer like the Discover Card and I will report on it in another entry. I still like to get a kickback on my purchases. There are a myriad of perks being offered these days, some are better than others so compare carefully. Many of the perk cards come with a hefty annual fee, don’t bother with them, you can do better. Some provide airline miles, some simply provide points, I still prefer cash back as it can be used on anything at any time.
7. Thou shalt not change thy spending habits. Now that you have your credit card you must not change your spending habits, only your payment habits. This is especially important if you happen to have a card that has perks. Just because the government thinks it can spend its way into prosperity does not mean you should. There is no way you can create an income for yourself by spending $100 for a $1 return, so please don’t try. You can however look for ways to use your card in places that you used to use only cash as long as there is no added fee to do so. The daily lunch run can be handled by your card rather than cash at many places fast food joints included. Grocery stores almost expect you to use a card now. I will pull mine out even if all I am getting is a pack of gum. Again, you must remember that you are not changing your spending habit to earn perks; you are only changing your paying habit to earn perks. Big difference.
8. No matter what the available credit balance is thou shalt not try to use it all. The Credit balance that is issued on a credit card is an interesting side note and nothing more. It is a ceiling amount that can easily be raised and lowered but it is inconsequential if you are in charge of your account because you will never come anywhere close to using all of it. There is usually no need. It is an artificial measuring device that the card companies use; it is not a measuring device that you use on yourself. You set your limits. Remember that you have higher standards. Just because they say you can doesn’t mean you say you can.
If you have any self control issues at all then forgo all the above and use strictly cash. Give yourself an allowance that you carry in your wallet or an envelope or whatever system you choose and live from that knowing that once that money is gone, it is gone and will not be replaced until the next allowance cycle. Until you master yourself you will not master your money but that is a whole other set of standards and tools.
One side benefit of the above, I have a monthly balance that is paid in full each and every month which reflects nicely on my credit score. The monthly balance is far less than the available credit which also helps the credit score. Do I care what my credit score is? Not really since it should be perfect but isn’t. It is the most abusive and highly inaccurate financial tool used today which makes me wonder why it is given so much power with so little oversight or liability on its part. My credit score is fairly high I am told. I know that it is just a measuring device that has become an industry unto itself. I want to live my life and have my finances such that having a credit score or not will make no difference whatsoever in my life. Contrary to popular belief debt is not the natural order of life. If you think that it is then it is time for a change of mind. You will find that life gets easier if you avoid debt.
Well there you have it. This pretty well sums up my take on credit cards. By the way, I do not have a pocket full of them. Two is usually plenty, three tops, from different companies or banks. That way you have a back up if one becomes unusable for any reason such as a computer failure on their end. It’s rare but does happen.
Just remember that this is you we are talking about. You matter. You come first. You decide the rules you are willing to play by and you decide which ones you will have nothing to do with. You are the consumer, you have the say. You live with the consequences either way.
This is Ed Nef with a view from the Farr West.
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