On Sun, 26 Dec 2004 03:37:54 GMT, "Stormin Mormon"
Now you said that, I remembered. Cash is in my wallet. The true
reason for this season. Being truthful, think, if Christ was the
central point of the holiday season, like Easter, then would it be as
big a bash as it is today?
Early christians banned Christmas Celebration because the Holiday
Spirt of the season has nothing to do with Christ.
Just keep the faith and the truth, and celebrating everyday as
Christ's day, with or without cash in the wallet. :-P
Merry Christmas Everyone! Oh, keep spending! Make that Cash
A little money and a couple of credit cards. I have no idea what their
interest rate is as I have not paid any interest on a credit card for over
20 years. Pay it off at the end if each month and don't worry about what
they are charging the fools who roll it over from month to month.
I was wondering...
My sister got into a little debt, but I helped her by consolidating all of her
credit cards (12,000.00 total) into one (mine) from "AT&T Universal" which
offered me a balance transfer at 0% interest for 1 year.
Over the year she made payments ranging from 900.00 a month to 1200,00 a month
and has 1 payment to go to complete payoff. No interest will have been paid on
Ya think this company is a little pissed, or might cancel the card?
Well that's my point, they've made nothing over the 11 months, and with the
final payment the offer is over, no interest as accrued, and they've
effectively loaned 12,000.00 for free.
I'm sure it's countered by the number of people who consolidate but still have
a balance after the "come-on" of no or very low interest expires. But I'm
surious as to what their next move will be.
I'd guess they're not going to do anything. They effectively made a bet with
him. He bet the debt would get paid down before the end of the free term and
they bet it wouldn't. They lost. I'd guess they don't lose all that often or
they'd stop making these sorts of offers.
I've used the "X months free interest" offers several times. If it's a 12 month
deal, I pay it in 11. If it's a 6 month deal, I pay it in 5. That way they
have a whole month to post the final payment and they can't pull any crap
claiming I was late after they sit on it for a while. So sad, too bad. I don't
make the rules; they shouldn't complain if I play the game they arranged.
My understanding is that the above is the smart way to use one of these
'Balance transfer' zero or low interest rate credit cards.
The point is to transfer the balance, and pay it off, without interest.
But: DO NOT USE THE CARD FOR ANY OTHER PURPOSE. So as to avoid any interest
charges or mix ups that the monthly pay off being made is for other than
repaying the debt.
AFIK none are available here in Canada? Cos. it could be a nice way to
borrow say $10,000 or $20,000 for a period of time, interest free!
Financial industry competition must be greater in some other countries?
There are interest accounts in the UK for example that pay 5% or better!
Some UK companies that currently offer zero interest until Sept 2005 or for
six months etc. are Egg, citiBank and Morgan-Stanley.
I did the same thing with a "People's Bank", or something like that, a
few years ago (when interest rates were much higher than they are now.)
$11,000 balance, paid off in about a year -- I think I paid $1.20 in
interest on that last payment because the 0% rate ended on the first of
the month and I thought it ended at the end of the last month.
I never did use that card, but they kept sending me additional special
offers and stuff for about a year before I eventually cancelled the
account. The company couldn't care less that I had taken advantage of
BTW, if I had been a day late with any of those payments, the "default
rate" would have kicked in immediately, and I think it was almost 30%.
Plus a $29 late fee. That's what they were counting on, but I
religously made my payments 2 weeks early (minimum payments for a while
to bask in the 0%, then big payments to ammortize the loan over the
remaining 7 or 8 months before the rate jumped.)
Right on Joseph.
OT I know but you gotta buy stuff to do 'home repairs'! Right?
Smart moves. a) Pay off your card balance shortly before the due date. b)
Don't ever; except an extreme emergency use the CC to get cash in hand.
Interest at a high rate starts immediately. c) Don't use bank machines that
don't belong to organisations other than your own; there WILL be 'other'
charges. d) Be familiar with what your financial institution, bank etc,
charges, if anything, for various transactions. Combine or avoid to minimize
them. Take advantage of any (I won't use the word free, because nothing ever
is; let's say "that are included") that are suitable for you._
And if you do have to borrow most people can get an unsecured line of credit
from a bank or other financial institution at interest rate depending which
country you are in, between 4.5 and say 7%.
A secured loan would most likely be even cheaper.
A LOC is a lot cheaper than even the lower interest rate credit cards; e.g.
we have only one CC on which the unpaid balance interest rate would be 18.9%
(Annual rate). If we ever paid any interest!
Since getting that card, about five years ago, we have paid exactly one cent
of interest (That's one cent, btw, not one per-cent!) I don't know why it's
even one cent; maybe a computer slipped a gear in the third place of
decimals somewhere and put the remainder difference in as interest?
The one advantage of a CC is that you can delay the cost of paying for a
purchase by up to approx. two thirds of a month. In the meantime you get a
little time to plan how to meet the cost. Right now, for example, we know
exactly what we owe on the card and when it is due to be paid,
electronically to continue to avoid any interest.
But I get the understanding that this is a pretty savvy group of people who
could probably teach me a thing or two!
All the best financially.
PS. In the meantime I'd like to know who has the use of my money during the
two to five days it takes to disappear from my bank account as a transfer
payment to reach my payee! But that's another topic.
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