Starting fresh...

I think I had previously mentioned that I took out a loan, which I consolidated my credit card debts, and previous loan, along with a little extra to shop around for some central air conditioning, which we've decided to wait out until after season when we will be able to get a better deal.

Anyway, one thing I did was to scrutinize my credit cards and weigh out the pros and cons of each of them. Basically I did like a Clean Sweep kind of thing with my cards. I had four different cards, which isn't too bad really, as many people I know of have a lot more than that. I had a major department store card, a major electronics store card, and two visas, both offering different point incentives.

The Credit Card I had from the major department store is one I've had for many years, and although I do use it the odd time for smaller purchases, I've mostly used it for larger purchases, like appliances or furniture. I've always kept it for this reason, because whenever I've made a larger purchase there, I've deferred the payments to equal payments for so long with no interest, or no payment, no interest for a certain amount of time. At this point though, I've decided to give it up. I figure if some such emergency should ever arise and I need to make a large purchase, I can get another card from them at that point. Another thing I thought of about this decision, is that if somewhere down the road I decide to get another card from this store, they usually offer some sort of sign up incentive when you first apply for their card, like a discount on your first purchase. So that's something to consider for me, especially if my next purchase from them is a large purchase.

I also closed down my credit card from the electronics store as well. Again, the only thing I have ever purchased at this store has been larger purchases -- digital camera, computer, laptop -- and just like the department store, I purchased these items on the deferred payment plan. As it turns out, I found out that the bank I work for offers it's employees interest free loans for computers. So should something happen in the future where I need to purchase a new computer, I'll be getting my financing through work.

Then the decision about the two visa cards. One offers me a dividend on all my charges, which is credited to my account at the end of the year on December's statement. The other gives me points at a nationwide drugstore chain. The dividend card has a higher interest, but it's nice to get that kick back on the statement just before Christmas. On the points card, I have half price interest charges, and this again is due to the fact that I am a bank employee, from where this card is from. Both of these cards had ridiculously high credit lines on them, which while it's nice to have the availability, it's also a bit scary too. As well, this is not always a good idea if you want to apply for any other credit in the future. Reason being is when you're applying for credit, at least here in Canada anyway, banks and creditors will look at your debt to income ratio, and it has to be within a fairly comfortable percentage. I believe that it maxes out at about 35% debt. Now, although you may have a few credit cards that have little or no balance owing on them, that's not what is considered when they are looking at your debt ratio. They look at your total credit line for each card, because in the case that you rack up all your cards to the limits, those would be the payments they would use for calculating your debt. So what I decided to do was to lower both of the credit limits on my visa cards. I've lowered the dividend card to just $1000. I know that's pretty low in today's world, but I use that card for all of my daily expenses -- gas, groceries, and essentials. I want to be able to pay that card off every month, since it has a high interest rate, and I don't want to carry a balance on a high rate like that. For my other card, I've lowered it by $2000., which still gives me a fairly high credit limit, which I'll use only in emergency situations. Because that card has the lower interest rate, it will be better to charge something on it that I may not be able to pay off right away. That way my payments won't be eaten up as badly with interest charges as the other card.

Anyway, this is the scenario I've chose for my own credit needs. While you may not be in the same boat as me, and have the availability of getting interest free loans from the bank, or half price interest, there are still some better deals around than what you may already have. You'd shop around for a new vehicle or insurance for that vehicle. You'd shop around for a pair of jeans to get the perfect fit. So why wouldn't you shop around to get the best credit card that will work for you? It makes perfect sense to me. And credit card companies are always coming up with new deals, so you may want to consider credit card shopping every six months or so, to make sure you can take advantage of the best options.

Olivia

Charge it!

Everywhere you go anymore in the shopping world, someone is trying to sell you their credit card. They offer all kinds of deals, such as freebies or savings off your first purchase to get you to sign your name on that paper that makes another sale to achieve their quota. I can't say I haven't ever taken advantage of one of these opportunities myself, because that's how I ended up with my Sears card. While Christmas shopping a few years ago, I was making a good sized purchase, and when the salesclerk told me I could save an additional 15% off this purchase if I had a minute or two to apply for their charge card. My brain automatically calculated what I could save if I did apply and it was enough for me to accept her offer. After a painless minute or so of answering a few questions, the salesclerk gave me my temporary card and rang in my order, complete with my bonus savings of 15%. I then turned around and made an immediate payment with her for my entire purchase. Ha! Sears wasn't going to make any money on charging me their 28% interest! I planned to cut that card up when the plastic version came in the mail, but then had second thoughts on that, and just kept it. I have to say it has come in handy when an appliance has gone off to appliance heaven and I haven't had the funds to go buy a new one. Personally, I always pay the nominal deferral fee and opt with the no interest plan over so many months. It makes it much easier paying for a large purchase when you don't have the money. So now considering every appliance in my home is a Kenmore brand from Sears, I'd have to say that my credit card with them has been a great little financial tool.

Credit Cards though can be a hazard for many people when not used properly. I was reading this article about shopaholics and credit cards, and trouble can definitely arise for you with credit and bad shopping habits. It seems too that most shopaholics are under the age of 25, which makes them not have as much experience with paying high interest and overextending their credit. They just love to shop whether they have the means to pay for their purchases or not.

Another thing to be cautioned about is the rising credit card fraud that happens all too frequently these days. I tell you, these guys are just too smart for their own good. As you know I work in a bank, and it amazes me the number of people that just come in to pay their bill for their credit cards, and don't even know what the charges were for! I kid you not! So always make sure you do a reconciliation of your charges showing on your bill. You can really only protect yourself so much. Sometimes though if you've used your card somewhere where a not so honest employee gets a hold of your information, it can cause you a little grief on your bill. I'm speaking from experience here, as I had returned from a vacation once and found my next bill to have charges at a place I had never heard of, but it was in the same city I was vacationing in. Turns out one of those dishonest employees was working somewhere I had used my card while I was there. I didn't have any problems with my credit card company getting a credit on my bill, but it did take some time, after receipts were ordered from the vendor, copies sent to me along with an affidavit to sign saying it was not my signature or charge.

I'll end this post with one more thought for you to think about when it comes to checking your bill closely... remember the TJMaxx credit card fraud by the masses? Need I say any more?


Olivia



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Getting by

These days it seems that everything is so expensive and going up in price all the time, yet wages remain the same. Everyone is finding they have to tighten their belts another notch just to get by. Take the price of gas for instance. Yikes! It's over a dollar a litre here again, and it doesn't look like it will be going back down for awhile. Of course we just had a couple of problems with refinery fires and rail strikes to help boost the price, and that doesn't help at all.

Bottom line though is, it's getting harder and harder to make ends meet, especially for those that have to live pay to pay. I suppose I'm lucky in the fact that I have the availability to make a few extra dollars on the Internet. But not everyone has that option. Before I started into my money making ventures, at times I was having to rely on my credit card to get me through to payday. I had never gone for a payday advance anywhere, but I know of many people that have had to, especially those that don't have a credit card or any other way of getting a few extra bucks to tide them over. Epayday is an online payday loan site, where you can go get a bit of cash to help you make it through to your next pay.

Face it, life's little emergencies crop up at any time, and are not always at the most convenient times, so it's always good to have a backup plan available. I only hope that I can continue to be able to make a few extra bucks and get ahead instead of always having to scrape by.

Olivia

Finance woes?

Now this is just brilliant! A company in the UK has put together a website that is literally a one stop shop for handling all of your finances. I have previously discussed in here before about an online car insurance site that hunts down the best available deal for you, which is perfect for saving yourself precious time and money, and now this fairly new site, Nations Finance will do the same thing, except they aren't limited to just insurance. They hunt for all types of financial needs, from loans and credit cards to savings accounts and mortgages. They have very easy to read comparisons for each section. And I have to add to that their interest rates are way better than those we have here in Canada! Hmm, perhaps I should consider a relocation!


Olivia

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0% credit cards

There are so many different credit cards out there these days, and all of them come with different offers, bonuses and point rewards programs. Many people go for the air miles rewards cards, and use those cards for all their purchases, so they can build up their air miles for a nice holiday. But then there are the others that looking to transfer balances from their other cards to reduce debt and get a lower interest rate. I even know of people that apply for certain cards based on what they look like, as in the graphics on the card.

Well, if you live in the UK, there's a cool new card that is perfect for transferring balances, and if you're into collecting cool cards, this one has something I've never seen before, and that is a new shape! Instead of the regular rectangular card, Mint has a new card that has one corner that is rounded off. Now that's different! And they're offering 0% on your purchases and your balance transfers that are completed by December 1st of this year. There is a 2.9% fee for transferring balances, but if you're paying a standard double digit interest rate right now, that's a considerable savings.

Mint also offers gift cards, which is like a pre-paid credit card. You can even personalize these cards with a special message, and they are usable worldwide at most places that accept Visa Electron. I think this is great idea for parents to give their teens that are going to be doing some travelling.


Olivia

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