The Best Reason To Pay Off And Then Cut Up Your Credit Cards

[Playinghardball]

This is like a crystal ball into your future.



Source: MoveOn.org

[gateley]

1. K&R! nt

[Brickbat]

2. Tell me more about the space-based rail gun.

[GKirk]

11. Star Trek geek?

B-)

[kentauros]

14. Or Babylon 5 geek

Mass driver




:D


(image is linked)

[JoePhilly]

3. I cut them up years ago.

I have a debit card, and one Visa card, both through my Credit Union.

I pay for almost everything with the debit card. I almost never use the VISA card. The last time I did, it was because something was wrong with my debit card. And so when I tried to use it, the computers could not read it.

Basically, that VISA card is a backup.

No other credit cards ever again.

[Uncle Joe]

4. They are good for emergencies but if you must use a credit card as a last resort.

Either pay off what you charged within 28 days in total and there should be no charges and at the very least pay more than your minimum payment, even if it's only ten, twenty or thirty dollars over the minimum.

Also never get a credit card that requires a yearly fee or a bunch of junk, BS processing fees or deposits.

Thanks for the thread, Playinghardball.

[CTyankee]

7. I've been paying off my Visa entirely each month and haven't carried interest

for about 22 years. I have one Visa (LL Bean) that gives me coupons for their merchandise -- just got some nice fall shoes for $9.99!) and a MasterCard that pays me cash rebates (I use it for gas and car maintenance because it's nice to have all of that in one account...easier to see what my car is costing each month). My car is a 99 altima which I paid off in 2001 and keep in good running order to avoid getting a new (used) car...

I monitor both cards statements closely every month for any errors and I question everything that even remotely looks fishy.

Ditto with my bank account. I got charged a whopping $150 new "fee" on my checking account and promptly changed banks, after having a lengthy talk with a bank rep about their fees or lack thereof. My branch in in my supermarket so they are handy if needed...

Oh, and that supermarket has a gas station and I get points on what I spend on groceries for a discount on the gas. Every little bit helps...this week I'm getting 20cents a gallon off...

[Uncle Joe]

9. It sounds like you use your credit cards wisely.

My bank didn't charge a checking fee before but that is about to change in September, they said due to "new federal regulations" I may close that account and just use the credit union.

Have a good weekend, CTyankee.:hi:

[The Velveteen Ocelot]

5. The numbers may be accurate, but it's not true that your heirs have to pay your debts.

If you die with a humongous credit card debt, your estate owes it, not your heirs. So if your outstanding credit card debt is $10,000 when you check out, your estate would have to pay that amount. If your estate isn't worth $10,000, it means your estate is insolvent and the bank doesn't get paid, or gets only part of it. Your heirs are not liable for the debt.

[FBaggins]

8. It's also true that minimum payments have increased so that negative amortization is out

and most people don't have 25% rates on their credit cards. The current market average is around 15-17% (depending on which measure you look at).

So the OP uses a bit of hyperbole... but the underlying point is a good one. Most people would be much better off if they avoided carrying a balance on credit cards.

[GKirk]

13. I'm guessing most people

figured out the sarcasm in that part of the story. Probably after the first millenium passed.

[anarch]

23. not right now, anyway...give the Republicans control, and...

you'll wind up with no estate tax, but inheritable debt. I bet the current situation irks the hell out of the banksters when they start thinking about it.

[hfojvt]

27. the numbers are bunk because most people do not pay 24.99%

it would make more sense to run them at 9.99% interest because people would probably still be paying $30,000 to pay off an $11,000 debt. Citibank used to calculate the minimum payment as 1/48th of the balance. When I ran a spreadsheet though, it still took far longer than 4 years to pay off.

[qb]

6. We need to streamline government regulations. They are clearly a hardship for the banks.

:sarcasm:

[GKirk]

10. This proves that people are

mucking forons.

[Booster]

12. Thanks for this. Sent it to my niece & nephew who fell into the

credit card trap and just don't understand what happened. This explains it very well.

[GKirk]

15. I'm guessing Dave Ramsey is a right winger but...

...he is vehemently against credit cards and most debt in general.
I like to listen to his radio show and hear the success stories of
people who have gotten out of debt. It can be done.

[coalition_unwilling]

17. Is Ramsey against mortgage debt? In other words, he and his ilk

make a fatal mistake when they conflate debt for hard assets (like real estate) that tend to appreciate in value over time with unsecured debt (like credit cards) or debt used for assets that tend to depreciate (like automobiles).

Same confusion and conflation pervades much of the right-wing paranoia about the national debt, fwiw.

[GKirk]

21. Mortgage debt is the only thing

he approves of but he encourages people to pay them off too.

[Bunny]

26. Dave Ramsey is most definitely a right winger, and I've heard him

say some pretty nasty shit about Obama and the Democrats in Congress. He's also a hard-core Christian and makes no bones about it. He is very much opposed to any debt other than mortgage debt, and he really encourages people to think outside the box when it comes to common debt such as car loans, student loans, etc. I think he offers good financial advice if you can stomach his politics and religion.

[CoffeeCat]

31. Dave Ramsey changed out lives...

My husband and I are hard-core Progressives. We went through the Dave Ramsey "Financial Peace" seminar twice and
it completely changed the way we think about our finances and how we deal with debt and what we purchase--and how
we purchase it.

I like that he makes people realize that so many of us are slaves to our debt. We owe so much money to the banks--for
credit cards, cars, our homes and other retail credit card bill. If you think about it, it's sad that so much of our money
goes out the window to these banks.

I know I'm "in the tank" for Dave, but our finances have completely changed. I don't subscribe to his right-wing nuttery
stuff nor his religious stuff. But the guy gives out great financial advice.

We used to pay so much in car payments, credit-card payments, etc. We have none of that now. We set up an ING
account and put XX in it every month--as if we had a car payment. But we don't. That money earns interest and when
we're ready to buy a car--we use the money in that ING account to pay cash for a car. We don't finance and pay the bank.
Dave has this chart about car payments--and the average person financing cars from age 25-65--pays $2 million dollars for those cars. Holy crickey!

We're just done owing the banks so much money. Our lives have completely changed. You are vulnerable when you owe
everyone--especially in this economy. Get the hell out of debt and keep the money you earn. Sorry to drone on and on, but
I believe in Dave's advice!

[RebelOne]

16. I had to go into a Chapter 13 bankruptcy several years ago

because of credit cards. After all my creditors were paid, I vowed never to have another credit card. If I cannot afford to pay cash for something I want, I just don't buy it. I am now retired and debt free and plan to stay that way.

[TlalocW]

18. I fell into the trap in college

If I had been smart and fooled around with Excel for 15 minutes, I never would have signed up for one. I worked extra hard and used most of the money from my side business to pay them off and then closed my accounts. Never again. And now when I do buy something that has to be on a payment plan, like a new computer, I pay as much as I can and then go to Excel to see how much to send in to pay it off in a year or so.

TlalocW

[yodermon]

19. I pay in full every month and get a slew of points on the side.

:shrug:

[applegrove]

20. I had a department store credit card with a limit of $500 right out of college. When I hit $500,

they upped my limit to $1000. When I hit $1000, they upped my limit to $2000. So I cut up my card. Glad I did.

[arikara]

29. You were smart

I got my first credit card when I was 19, and it had a $300 limit. Year after year they kept bumping the limit up until it reached $10,000 and at one point I had it racked up to $3000. Even at two times minimum payments it never seemed to go down. After about a year of looking at over $200 a month interest I saw the light, cashed out my mutual funds...I don't know what you call the retirement savings in the US but if you cash them early you get dinged on them... and paid off my stupidity card. I've used it since, but pay it off in full every month and have not paid a cent in interest on it in 12 years. The bank will never see another thin dime out of me through usury.

[applegrove]

30. I later spent too much money on credit. So my discipline was shortlived.

[OffWithTheirHeads]

22. You don't own debt, it owns you.

[WillowTree]

24. What credit cards? I don't do credit cards.

[Exultant Democracy]

25. I'm with you, I just turned 30 and have never had one. Never felt the need for one

and have never missed out by not having one. All my debt is tax deductible student loans and after paying off a couple of car loans I have great credit. I only wish I could turn off the flood of credit card offers I get in the mail it's practically a tree a day.

[Liberal_in_LA]

28. hilarious and sad at the same time

[ZombieHorde]

32. Debt moves on to one's children?

If I am angry with my children, I can acquire as much debt as possible, and laugh on death bed?