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Paying off Credit Cards

Discussion in 'Financial Cents' started by stg58, Feb 24, 2015.

  1. stg58

    stg58 Monkey+++ Site Supporter+ Founding Member

    A while back I posted on paying credit cards and cancelling them and got a bit of a lecture on basic credit.
    Well I did pay one off a few months and cancelled it leaving me with 2 an Amex and Visa and this week I received a letter from both increasing my credit line the Visa doubled...from 1,000 to 2,000 [sarc2]and Visa lowered my interest rate

    The end result is I have the same credit line now at a lower interest rate.
  2. Tully Mars

    Tully Mars Metal weldin' monkey Site Supporter+

    We no longer have any real CCs. A debit card and a couple of reloadable cards that are used for purchasing certain items when we can't use cash. We get different reloadables a few times a year from different AO's. Not sure if its worth all the hassle, but it makes me feel better;) The addys for the cards are different than any property we own.
  3. HK_User

    HK_User A Productive Monkey is a Happy Monkey Site Supporter

    Ahh the credit card race. Cards I have are of the no interest type if the min is paid. Due to a certain risk with Debit cards mine now stays at home. I use the credit card/cards as a monthly way to pay my expenses and leave the cash in my account until I pay up.

    I use pay pal in the same manner with their 6 month or 1 year no interest payment plan.

    Works for me but you have to stay up to date on your card and have the funds at the end of the month to pay them off. This process also nets me some money back for free to me.
    Last edited: Feb 24, 2015
    stg58, NotSoSneaky and ditch witch like this.
  4. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Just a corporate cc at this house.
    We use PP debit cards linked to a bank account which gives us 1.5% cash back without limit.

    I'm not totally against credit cards but there was a time 10 to 12 years ago that they got away from us. After we went debt free except for the mortgage, we decided to use cash accounts instead. For us this is mostly for spend control...
  5. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    This is the year that I have earmarked as get out of debtors prison.
    Already paid off 4 CCs and one student loan.
    still have more debt to go but considering CC rates are tied to the fed's interest rate + their juice .. I don't want to be holding any outstanding variable rate debt if the house of cards fails.
    Motomom34, stg58, Tully Mars and 2 others like this.
  6. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Paying off debt is like giving yourself a raise.

    We use old school 'spend to zero' budgeting with paper envelopes in the safe. Kinda nice when Christmas comes around and there's a couple Gs waiting in an envelope for festivities :)
    Dont, stg58, Tully Mars and 3 others like this.
  7. NotSoSneaky

    NotSoSneaky former supporter

    Cash back cards for everything we typically use FRN's for and never carry a balance.
    Its like getting a (small) discount on everything !
    It adds up quicker than you'd think,[tongue]
    Airtime and stg58 like this.
  8. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Just to let you know, My local starbucks can't break a 50. They don't have hardly any cash in the drawer.
    They gave me free coffee twice cause they couldn't break it.

    I wound up helping them out by buying one of their cards so I too could join their pay with plastic MO.
    Motomom34 and stg58 like this.
  9. tacmotusn

    tacmotusn Mosquito Sailor

    WARNING ..... Quite Possibly, and Most Likely, for every 4 persons reading this, one of you recently had a major security breach; to include your complete medical records, social security number, billing records including credit cards used to pay medical bills.

    A company called "Anthem", who is the largest Medical Records computer storage facility in the USA was hacked. 80 million medical records were compromised. This happened in the last 6 weeks. It made national news, but not much of a splash, and quickly faded into the shadows. IT IS A REAL AND SERIOUS THREAT on several levels. I was concerned and considered getting "Lifelock" as soon as I heard about the breach. I believe in statistics, and playing the odds. approximately 300 million people in the USA and 80 Million records hacked. As I said above, more than 1 in 4 breached.

    Y'all can do whatever floats your boat. I suggest you very closely monitor your credit, as well as any other possible identity theft threat you can conceive.

    I received an email from one of my credit cards yesterday (24 Feb 2015) at 4pm. My credit card company had denied a $39.99 charge at 1:31pm the same day as being suspicious, and requested I contact the CC company asap. I was lucky someone was watching. I have a few more calls and actions to take to clear this problem, minor as it may well seem. I will cancel this card # completely, and get a replacement. I will be joining Lifelock today. I do not need this kind of BS. Best of luck to you all. Take care, and watch your 6. Y'all never know what's trying to sneak up on you to do you harm.
    Last edited by a moderator: Feb 25, 2015
    Motomom34, Tully Mars and kellory like this.
  10. madmax

    madmax Far right. Bipolar. Veteran. Don't push me.

    It took us years to climb out of YMCCCD (young married couple credit card debt) We have one apiece now for emergencies and pay them off every month.
    VisuTrac likes this.
  11. HK_User

    HK_User A Productive Monkey is a Happy Monkey Site Supporter

    I check my "accounts" twice a day. Had one breach about 4 years ago. Some duffuis in town copied the Debit Card and then proceeded to spread the wealth around. Caught it within two hours and canceled the card. No loss on my part, but I did get a call from a seller in New Mexico wanting to know why I wanted a breast pump and was sending it to Canada! Good catch on his part,especially for a Sunday.
    Tracy likes this.
  12. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Mine was hit late last year due to a hack at a previous employer's personnel records. The CC co caught it, (two bogus charges within 2 hours of each other, one in Miami the other in Vegas over 400 FRNS total) the employer also caught it. The CC was cancelled forthwith, new one issued. The employer placed my CC account on a watch list for a year, no charge to me.

    What's interesting or not is that I left that employer over 20 years ago. There seems to be no depth too great for dredging up records useful to hackers.
    tacmotusn likes this.
  13. Yard Dart

    Yard Dart Vigilant Monkey..... Moderator Site Supporter++

    We are also in the process of getting rid of credit cards with the plan to have maybe two for emergencies.Last year my debit card was caught up in the Target hack.... I never had any money taken and the bank issued me a new card as soon as they got the list of clients that had made purchases during the time frame from Target.

    The company I work for had to re-issue all of our credit card's after several of them getting caught in the Home Depot hack. And last fall we had to re-issue all of our Chevron gas cards after getting hit for about $15K in gas charges in ONE month. Apparently one of our guys had his card cloned in some manner and then they just ran all over the place filling up. They had tracked the guy to a station and had him on video... but to date he has never been identified..... license plate was obscured.
  14. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Part of our budget plan puts cash in an envelope marked 'Emergency'. We also have 1 year of expenses as a job loss emergency fund although I'd really like to get that to 2 years. This fund would keep us living exactly as we are today (ballet lessons, other activities etc) with no income.

    For me, I don't like the idea of a cc for emergencies... It puts me one catastrophe away from debt again.
    Yard Dart likes this.
  15. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Agree and use them for backup to cash. I also keep some cash around (but not a year's worth.) And like most else, one is none and two is one, consequently two CCs fully paid up at bill time. It took a LONG time to get out from under interest payments, but well worth it.
    VisuTrac and Tully Mars like this.
  16. Tully Mars

    Tully Mars Metal weldin' monkey Site Supporter+

    @melbo I agree with you, but I also can see the need or piece of mind that having a CC for a fall back can bring to someone who isn't "there yet". The problem can be will power. Having the will power to leave the CC in the gun safe until there really is an emergency-car motor blew, medical emergency,ect. Years ago I started out this way. Got a bit upside down with debt. Worked OT and a 2nd job along with doing auto repairs out of my garage to get back above water. Got rid of all CCs except for one that stayed @ home. Thankfully I never needed it, but I felt better knowing it was there. Kept with the extra work TIL I paid off all the debt, then saved that "extra" money to purchase all the equipment I needed to start my own business. After about a year things were going pretty well and I've never looked back. There have been ups and downs for sure, but now I am comfortable with where we are. We pay cash for most everything whenever possible. The debit card is mainly for the wife's account. They only do direct deposit where she works so the debit card is mainly how she spends her wages.
  17. Yard Dart

    Yard Dart Vigilant Monkey..... Moderator Site Supporter++

    Sounds like you are following the Dave Ramsey plan... We did the envelopes for a quite a while after the wife took his class at church. We did try to make that plan work, but we purchase a lot from online such as Amazon. So we had to alter our envelope plan to compensate for those purchases. I do have a personal envelope for miscellaneous expenses... call it an allowance or whatever... keeps my toy expenditures off the family budget radar. ;) A years worth of stash to cover home expenses in an emergency would be awesome to have..... but that will take some time under our current "way's" of money management.
    Tully Mars likes this.
  18. melbo

    melbo Hunter Gatherer Administrator Founding Member

    My system is close to Financial Peace but we created it on our own. It follows the zero spend method which means that every other Friday, we 'spend' my paycheck down to zero by putting all necessary money into it's rightful bucket. We do the same here with an allowance: I get a certain amount of cash in my hand every 2 weeks and also have other melbo envelopes for clothes etc. I don't touch our main account nor do I use the main accounts debit card.

    10% tithe is the first thing to come out of the check
    stg58 and Yard Dart like this.
  19. stg58

    stg58 Monkey+++ Site Supporter+ Founding Member

    Actually I would have dumped them all if I was not going to be bought out with my job and will do a little bit of traveling with my wife.
    Right now I pay all my bills, power, insurance, water and two CC with paper checks once I have my severance package I will buy a brand spankin' new truck possibly my last vehicle cash and burn my frequent flyer miles and dump at the minimum 1 more CC and use a debit where I "need" plastic to buy something.

    With all of the hacking crap I severed online access to of my financials 401K, Roth IRA, Pension, CC, checking/savings my overall goal is to use the banking system as little as possible.
    I will be putting a security freeze on my credit again as well.
    A few years back there was a charge on my CC for a credit report not a report on me all they would give as a hint was the first name of Brett to see if I knew anyone named Brett, I met Brett Favre once but did not run a credit report on him and that is the only Brett I know I told them they chuckled :)
    The charge was removed but I wonder how old Brett felt about it.
    Security freezes are designed to prevent a credit reporting company from releasing your credit report without your consent. However, you should be aware that using a security freeze to take control over who is allowed access to the personal and financial information in your file may delay, interfere with or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular telephone, utilities, digital signature, Internet credit card transaction or other services, including an extension of credit at point of sale.
    Tully Mars and kellory like this.
  20. BTPost

    BTPost Old Fart Snow Monkey Moderator

    I have posted this before, but it does bear repeating...... Years ago, I was determined to become Debt Free. It took a couple of years, and a move to the Bush of Alaska, but the stress of Debt was crushing. I still keep 3 "Lines of Credit" that were established decades ago, for Bruce's Trading Post, and are tied to those Banking Institutions VISA or MasterCard CCs. A few years back I got a Notice that one Banking Institution decided that the Trading Post wasn't the type of Business they would do business with, and were intending to cancel the Line of Credit. (High 5 Figures) I called their Exec VP, and told them "Fine" I will just go to their Largest Competitor, and open an Account for twice that, with them, as well as publicizing their "New Policy" to ALL my Business Associates. At the time this "Line of Credit" had been in existence for 20+ Years, and I asked him to check both my Personal Credit Score, and the Trading Post's, Standard & Poors Credit Score, and Dunn & Bradstreet Report. He called back the next day and Apologized for the "Error" and stated that not only would they be "Very Happy" to continue to service my Line of Credit, but would increase that line by 100% and lower the Interest Rate charged, to Prime +1%. (Never paid them a dime of Interest on that account over the years) I declined his offer, closed the Account, and said "Audi Ous" to that Outfit. I am still getting letters from them every few months, asking to bring my business back to their Institution. They get ripped up and burned with the rest of the Trash. That Outfit was reported to have been Hacked to the tune of Billions, recently. I have both Debt Cards and CCs, but only Use the Line of Credit CCs, which are paid off, every month, before they incur any Interest, and give me Miles, and 1.5% Cash Back, for ALL Transactions. It is just "self-disipline" in spending, and living within your Income. These are worthy Goals for Anyone, or Family, to embrace, and taught to Me, and all my siblings, by my Father, The Banker, from a very young age.
    vonslob, VisuTrac, kellory and 3 others like this.
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