Credit is nice as long as you don’t need it or if you do need it, as long as you don’t let it get away from you. The few times we bought something on credit, the folks ran our scores and were suddenly extremely interested and polite. It has been several years now, so who knows how it is now?
My coworker’s ex-wife used to think that those blank checks that credit card companies used to send were free money. She would use the checks from one card to pay another card… then she’d go out and spend the “money she saved” in their account on goodies for herself… he didn’t realize what was happening until he got a bonus that he thought could pay off his credit cards, and found that they were max’d out instead…
I wish I had that problem. I always pay my credit card on time, have over 800 credit score, and never carry any balance, but my credit limit is stupidly low. I didn’t use one of my credit cards as much, and they dropped the credit limit on me for it. The main one, I had to call them to get them to lift it above $4k.
When I was younger, I was very stupid and fell for the “transfer your debt and pay no interest for 6 months” trap. That’s how I wound up with 13 maxed credit cards. Most of them my husband didn’t know about. I did admit I was underwater. His parents helped cover the cost of our rent while I worked with a financial company and the creditors to set up a pay back plan. The first thing was to call all the creditors and close all my credit cards, except one. The one I kept was the one with the lowest interest rate. Then I created a spread sheet to budget every cent I made and exactly where every cent would go. I first cut things we didn’t need – like cable. There were expenses I had to cover – like gas to get to work and some utilities – like gas for stove and water heater. Then whatever was leftover was divided up among the credit cards. The card with the highest interest was paid off first. Once it was paid off, that exact amount was added to the payment to the next highest interest card. It was amazing how that snowballed into paying the cards off faster and faster. The interesting thing was, since I initiated the closing/canceling of my accounts, it did NOT affect my credit score! I had always made my minimum payments, but recognized was I getting to the point where I was about to NOT be able to continue to do that. As I paid off each card, the companies would try to lure me back with higher credit limits since I was such a good customer. I said NO!! After everything was paid off, I kept 3 then had to get a 4th. 1st is the oldest – for the credit rating – has a yearly fee and that is the ONLY thing that goes on it now. Just about every financial adviser says keep it because of how long I have had it. 2nd one is from my credit union – incredibly low rate, earns rewards points, has highest limit. 3rd one is sort of low interest but earns me Amazon credit points which is GREAT! The fourth one is for Sam’s Club. Used for fast check out.
Once they changed the Bankruptcy laws so that you cannot get these “Loans” cancelled, they turned into “Golden Loans” for the big banks. Debt Slaves for Life and beyond.
Bilan over 4 years ago
It’s like sending ads for a buffet to someone on a diet.
eromlig over 4 years ago
NOW how much can you spend??
allen@home over 4 years ago
It works both ways. Received a letter from one of my credit cards. I wasn’t spending as much as they wanted me to so they lowered my limit.
mddshubby2005 over 4 years ago
Never tell your debt limit to anyone with no interest in paying it off. Never .
Gent over 4 years ago
Never used credit cards. Never will.
David Huie Green LoveJoyAndPeace over 4 years ago
“I can do it, Mommy. Let me show you!!”
Credit is nice as long as you don’t need it or if you do need it, as long as you don’t let it get away from you. The few times we bought something on credit, the folks ran our scores and were suddenly extremely interested and polite. It has been several years now, so who knows how it is now?
bopard over 4 years ago
read the fine print Pam! They’ve also raised your interest rate.
Lee26 Premium Member over 4 years ago
Pay off reward credits cards every month. It is a Win/win. As soon as you get into the ‘pay a small charge every month club’, it is a lose/lose.
Jerry Martin Premium Member over 4 years ago
I used to have a major credit problem. I fixed that when I divorced her.
ferddo over 4 years ago
My coworker’s ex-wife used to think that those blank checks that credit card companies used to send were free money. She would use the checks from one card to pay another card… then she’d go out and spend the “money she saved” in their account on goodies for herself… he didn’t realize what was happening until he got a bonus that he thought could pay off his credit cards, and found that they were max’d out instead…
geese28 over 4 years ago
For most it’s a challenge
eb110americana over 4 years ago
I wish I had that problem. I always pay my credit card on time, have over 800 credit score, and never carry any balance, but my credit limit is stupidly low. I didn’t use one of my credit cards as much, and they dropped the credit limit on me for it. The main one, I had to call them to get them to lift it above $4k.
contralto2b over 4 years ago
When I was younger, I was very stupid and fell for the “transfer your debt and pay no interest for 6 months” trap. That’s how I wound up with 13 maxed credit cards. Most of them my husband didn’t know about. I did admit I was underwater. His parents helped cover the cost of our rent while I worked with a financial company and the creditors to set up a pay back plan. The first thing was to call all the creditors and close all my credit cards, except one. The one I kept was the one with the lowest interest rate. Then I created a spread sheet to budget every cent I made and exactly where every cent would go. I first cut things we didn’t need – like cable. There were expenses I had to cover – like gas to get to work and some utilities – like gas for stove and water heater. Then whatever was leftover was divided up among the credit cards. The card with the highest interest was paid off first. Once it was paid off, that exact amount was added to the payment to the next highest interest card. It was amazing how that snowballed into paying the cards off faster and faster. The interesting thing was, since I initiated the closing/canceling of my accounts, it did NOT affect my credit score! I had always made my minimum payments, but recognized was I getting to the point where I was about to NOT be able to continue to do that. As I paid off each card, the companies would try to lure me back with higher credit limits since I was such a good customer. I said NO!! After everything was paid off, I kept 3 then had to get a 4th. 1st is the oldest – for the credit rating – has a yearly fee and that is the ONLY thing that goes on it now. Just about every financial adviser says keep it because of how long I have had it. 2nd one is from my credit union – incredibly low rate, earns rewards points, has highest limit. 3rd one is sort of low interest but earns me Amazon credit points which is GREAT! The fourth one is for Sam’s Club. Used for fast check out.
bakana over 4 years ago
Once they changed the Bankruptcy laws so that you cannot get these “Loans” cancelled, they turned into “Golden Loans” for the big banks. Debt Slaves for Life and beyond.