I'm mad as heck, and I'm not gonna pay it anymore!!

[wheelinscott]

My answer to that is unpopular these days. You should have a savings account. Especially in todays economy, you should have at least 6 months of income saved back in case of emergencies.

X2 I think that or saving 10% from each pay check is also a good way to go about it. (now i need to go practice what i preach )

 

[Rob Mayercik]

My answer to that is unpopular these days. You should have a savings account. Especially in todays economy, you should have at least 6 months of income saved back in case of emergencies.

Some places won't always take cash or check.

A jeep dealer near me won't take cash for amounts over $500, no checks over $1500. The dealer I bought my VW from won't take a check at all (don't think they take money orders either).

I have that reserve savings, but I use my CC as a cash equivalency - it gets paid off every month, and I don't consider the limit on it as "in addition" to my savings but rather as an expression of part of it.

Oh, and to debit cards? Sorry, but I don't trust them yet - I have no issue with Direct Deposit (though I make the Fed/State mail me a check at tax time, seems like paying 1st class postage is the least they can do), but there's no way on this Earth I'm going to let anyone but myself have withdrawl access to my bank account.

Now, I've heard that with BofA you can create "virtual" credit cards with custom limits and timeouts - sounds really interesting for PayPal and such. Have to read up on that...

 

[Ecomike]

I have heard that American Express has the ultimate credit card now, it is black, solid metal, and heavy like gold or lead. It has NO, I said NO, credit limit! Sounds like what the US Treasury needs these days, LOL.

I also refuse to allow, or use debit cards or debit payments. I don't let any of my suppliers go straight to my checking or savings to collect monthly amounts. I do however have some set up to collect for services like monthly internet services directly to one of my credit cards as a matter of convience. That way I pay just one bill for many each month. Big time saver for me. And that way I get to verify the bill before I pay it. If the billed amount it is wrong, or fraudulent I can have the CC company help me fight them by reversing the charges.

 

[heyhar]

I use a CC only for Internet purchases. Never put the debit card number out there. We have some sort of protection on the cards. My wife got a call last month asking if she'd been in Australia lately, as her credit card number was being used there. She said no, and they immediately shut it down, and gave her a new card. Between the three of us at home, we get about a dozen applications a month, all promising 0% on transfers. Find a new card at a lower rate, and give them your business. Or go to a branch office, and talk to the manager. They have great flexibility when it comes to rates and other financial products, especially when it comes to keeping an active customer from walking. Or did we hear all the details?

 

[sullysxj]

My wife and i are well on our way on paying down over 12k in cc and student loan debt. We will never borrow again other than a house. Been working on Dave Ramsey's plan for a bit but just started to kick it in high gear. If anyone is in debt and tired of paying 24% int. and living paycheck to paycheck and stressing over bills and fighting over money i can't say enough about what he teaches. "your greatest money maker is your income" but not when you are paying out more than what is coming in. "What if you made 12% to 18% interest on your money instead of paying 18% on what you owe." I can't wait until we are debt free! and i can start SAVING for my projects. I also got mad as heck, but I am going to pay it. But that will be it, forever. There is no alternative, no chapter 7 for someone with the ability to pay, who realizes that we just have to suck it up for the next year. 1-Budget 2-small emergency fund 3-Start paying off each CC, one at a time. "If i will live like no one else, Later i can live like no one else."

 

[BruceB83]

First of all, that lady in the article is a fool.

Second, if you don't like paying those ridiculous interest rates, it's very simple....don't play their game! Don't want a snake bite? Stay away from the snake. Credit cards are not a necessity to a normal life, they are quite the opposite. It's called a savings account!

If you can have 3-6 months expenses sitting in a money market account, you do not need a credit card and then you will never find yourself in the situation that she and so many other people are in. People who argue they are better off using a credit card rather than their own savings as a back-up plan only do so because they choose not to have the self-control in order to create your own savings account.

 

[Darky]

First of all, that lady in the article is a fool.

Second, if you don't like paying those ridiculous interest rates, it's very simple....don't play their game! Don't want a snake bite? Stay away from the snake. Credit cards are not a necessity to a normal life, they are quite the opposite. It's called a savings account!

If you can have 3-6 months expenses sitting in a money market account, you do not need a credit card and then you will never find yourself in the situation that she and so many other people are in. People who argue they are better off using a credit card rather than their own savings as a back-up plan only do so because they choose not to have the self-control in order to create your own savings account.

What about the people who choose the have a savings account and use their credit card for it's built in protections? You pay cash and get screwed, there is no recourse. You can't call your cash back into your pocket (although that would be cool), but you can dispute a charge and get it taken off your credit card.

 

[BruceB83]

What about the people who choose the have a savings account and use their credit card for it's built in protections? You pay cash and get screwed, there is no recourse. You can't call your cash back into your pocket (although that would be cool), but you can dispute a charge and get it taken off your credit card.

Debit card. Offers same protections as credit cards. If it doesn't, leave your crappy bank and go to one that does. If you're talking about consumables, it doesn't matter because the purchase is consumed and it's gone. You can't return it, there's no reason to need protection.

What type of purchases are you concerned about enough to make you feel "protected" because you used a credit card? And if you're talking online purchases, well that's a gamble no matter what you use. But if I make an online purchase, I don't use the debit card linked to my daily living account.

 

[PhotographerMike]

I'll throw in a few random observations in no particular order.

Savings; Every week $100- gets automatically deducted from my wife's pay check and deposited into savings. Since both our incomes can vary there are times when some of the savings is needed to pay bills. BUT, over the years we did manage to save enough for a down on a house.

Paying CASH for cars or not buying because of the interest; Our daughter and husband bought a new Honda Fit a year and a half ago. I had her ask the dealer "what could they do about the interest rate?" They ended up with a 0% 60 month loan @ $160- a month (after down pmt.) which is less than their monthly repair bills on the old 130k+ mile Golf. Any spare money goes into their savings.

Credit Card benefits; My cards (business + home) double the manufactures warranty up to an additional year and pay car rental "LDW" fees. When my computers hard drive decided to forget where everything was stored after 20 months of ownership (with a 12 mo. factory warranty), I called the C.C. warranty people with an estimate, got it authorized and had a check for $400- within 2 weeks.

 

[Darky]

Debit card. Offers same protections as credit cards. If it doesn't, leave your crappy bank and go to one that does. If you're talking about consumables, it doesn't matter because the purchase is consumed and it's gone. You can't return it, there's no reason to need protection.

What type of purchases are you concerned about enough to make you feel "protected" because you used a credit card? And if you're talking online purchases, well that's a gamble no matter what you use. But if I make an online purchase, I don't use the debit card linked to my daily living account.

So basically you're just playing semantics now. You use a debit card for purchases online or otherwise via card. It sounds like a lot of the people here use a credit card for those purposes. So, where's the downside to the credit card if you use it like many seem to, and only spend what you actually have available and pay it off each month. Then it functions, debt-wise, just like a debit card, but with the extra benefits of being able to dispute as well as the benefits listed by PhotographerMike above me. Also, when renting a car, many rental places will place a hold on the card for the amount of the rental plus an extra $100-150 security deposit. I used to work for one, and that's what they did. If you know you have the cash for your rental but kinda would like to have access to that $150 extra while on vacation, a credit card is great. You put it on the card, have your fun, come back when you're supposed to and then pay cash or by debit card at the end if you really don't want to have even a momentary balance on the card.

 

[TekkaMaki]

Bank of America is the world leader in scumbag banking practices...IMHO.

I didn't read the story and don't know anything about this lady or whatever, she may be an idiot I don't know, but I do know that BoA does those types of things such as raising interest rates without provacation and lowering credit limits under current balances with no or very little warning then immediately charging exorbitant service fees etc.

 

[5-90]

The basic problem is that these issuers can go about changing the terms of the contract at will - and the only real recourse you have is to stop using the card.

Yeah, cards are typically a trap - but they can come in handy. I don't like them, and I'd prefer a debit card (with overdraught protection - those fees are exhorbitant as well.)

But, when they can change the interest rate by multiplying it three- to five-fold, or otherwise randomly change things about to their advantage and the first notice you get is when the next bill comes in (early) - there's something significantly wrong. And, since it's either "my way or the highway," there's something seriously wrong with the system.

When they can put your overlimit with interest charges, and then charge you for being overlimit (despite your not making purchases that put you over the limit yourself,) or - worse yet! - they don't block a purchase that would put you overlimit because that nets them an extra thirty to forty dollars - there's a problem there as well.

What she's doing isn't terribly bright, but maybe it's the cause celebre that is needed to show that the issuers are out of hand, and that the new credit card law just isn't enough. After all, these things have to start somewhere, no?

 

[wolfpackjeeper]

My credit cards all have to issue a cardholder statement when a change is made, and it is required to be in my hands a certain number of days before the change can be enacted. If you read the agreement it states that if I disagree with the changes, I send a letter and they will close the account and put me on a payment plan at the current interest. rate. I was pretty sure that this was an industry standard. So all this lady had to do was send a letter, and her rates would have stayed the same. She just would lose the use of the card.

I keep a credit card in my glove box, and if I travel I carry one. I will not carry one otherwise, or keep one in my wallet, other than my Government Travel/Expense Card. Of course now all my cards are covered by the SCRA Credit act, and we just finished off my wifes Credit Cards, so now it is moot.

 

[BruceB83]

So basically you're just playing semantics now. You use a debit card for purchases online or otherwise via card. It sounds like a lot of the people here use a credit card for those purposes. So, where's the downside to the credit card if you use it like many seem to, and only spend what you actually have available and pay it off each month. Then it functions, debt-wise, just like a debit card, but with the extra benefits of being able to dispute as well as the benefits listed by PhotographerMike above me. Also, when renting a car, many rental places will place a hold on the card for the amount of the rental plus an extra $100-150 security deposit. I used to work for one, and that's what they did. If you know you have the cash for your rental but kinda would like to have access to that $150 extra while on vacation, a credit card is great. You put it on the card, have your fun, come back when you're supposed to and then pay cash or by debit card at the end if you really don't want to have even a momentary balance on the card.

To use another analogy, play with fire long enough and you get burned. But, it sounds like you have it all figured out so keep playing the banks games, doesn't hurt me. I just choose not to even deal with these people and I suffer ZERO negative consequences therefore I see absolutely no reason to use them. You think the credit card was created because it's beneficial to you? :roflmao: They, being the creditor, wins when you use their card otherwise they wouldn't be in the business.

See, even if you pay it every month you are still supporting these scumbags. And, it's there as a temptation. Cash/debit is smarter. Period. I'll have to find the exact number, but I just read in a book that something like 80% of millionaires don't use credit cards. Sorry but I'll take their advice over what you believe to be best any day, unless you're one of them. And by millionaire I mean people with a net worth of over a million, not people who appear to be living the millionaire lifestyle, most of them are not worth squat.

 

[Ecomike]

My credit cards all have to issue a cardholder statement when a change is made, and it is required to be in my hands a certain number of days before the change can be enacted. If you read the agreement it states that if I disagree with the changes, I send a letter and they will close the account and put me on a payment plan at the current interest. rate. I was pretty sure that this was an industry standard. So all this lady had to do was send a letter, and her rates would have stayed the same. She just would lose the use of the card.

I keep a credit card in my glove box, and if I travel I carry one. I will not carry one otherwise, or keep one in my wallet, other than my Government Travel/Expense Card. Of course now all my cards are covered by the SCRA Credit act, and we just finished off my wifes Credit Cards, so now it is moot.

Unfortunately the "standard practice" was rapidly changing the last 2 years, to a one where the CC companies could "make any changes, at any time, for any reason, or no reason, with no advanced warning". I was starting to get some of these updated policies in the mail last year.

 

[IslanderOffRoad]

My answer to that is unpopular these days. You should have a savings account. Especially in todays economy, you should have at least 6 months of income saved back in case of emergencies.

I have one, plus investments.

However that money is making me more where it is than the interest cost me.

 

[old_man]

You are correct. I should have said funds you can lay your hands on if needed, such as investments, etc. A savings account pays crappy interest. The bottom line is not to have to rely on credit every time something goes bump.

 

[95' heep]

You are correct. I should have said funds you can lay your hands on if needed, such as investments, etc. A savings account pays crappy interest. The bottom line is not to have to rely on credit every time something goes bump.

you sir, are just as wise as my economic teacher in high school

save!
save!
save!

i need to do same thing, i dont know why i didnt hasta

i need to at least get started and control the expenses to start a saving plan and get the # up to a certain level and KEEP it there just be in case that i go over a bump down the road

great read here! LOT good points

myself i dont have a creditcard (im just 19 yr old) and i hasnt decided if i should get one yet. if i get one, i might mostly will use it for secure reasons and back-up $ (if either i dont have any saving or the saving ran dry). however i am not sure how they work about if i have a account but i dont buy ANYTHING?