After I finish Paying off credit cards.......

[Diolla]

Be sure and read the fine print some cc's only charge an annual fee if you don't use them. I had one that if you didn't use it for a year you were charged a $25 annual fee.

[neatdesign]

Originally Posted by Diolla

Be sure and read the fine print some cc's only charge an annual fee if you don't use them. I had one that if you didn't use it for a year you were charged a $25 annual fee.

I feel it's important to read ALL the fine print at least twice BEFORE you decide to apply for a card. If there is anything that doesn't make sense, then it's a good idea to call the credit card company and ask for a clarification -- again, BEFORE applying.

Credit card companies are fantastic at making some really great, too-good-to-be-true offers -- because they are hoping the consumer WON'T read all the fine print and so the CCC won't have to hold up their end of the offer when the cardholder eventually screws up.

A good example is the type of card that offers "0% APR on the life of the transferred balance" -- BUT in order to maintain that 0%, the cardholder has to have 3 purchases post to their account every billing period (NOT "every month"). Let's say the cardholder's billing period ends on the 15th of each month. They could make 3 purchases BUT if the third purchase doesn't post until the 17th, then their 0% APR will end, PERIOD. Unlike other types of T&Cs attached to 0% offers, this particular set-up doesn't require the account to be delinquent for the 0% to end -- just bad timing on the part of the cardholder.

Moreover, a lot of these types of offers don't require a minimum amount for the 3 purchases. Consumers will go out and buy something for $50 or $100 and then get stuck paying interest on those purchases (because the payments are allocated to pay down the 0% balance first, of course). They assume that the purchases have to be of significant value to "count".

But if the fine print doesn't say that the purchases must be of a minimum amount, then the consumer could buy something that costs next-to-nothing and still keep the 0%. While working for Capital One, I remember one lady who maintained her 0% APR by buying three postage stamps (37¢ each) as separate purchases each billing period. So she was only adding $1.11 each month to her purchase balance, which kept her accrued interest very, very low. (And by buying postage stamps, she also didn't have to pay taxes on her purchases!)

~ Jenney

[neatdesign]

Originally Posted by Savingmonster

Somehow I am convinced you are going to overcome this. Just take one credit card at a time. Up until this year I was very bad with money, savings and not paying off these cards. Last year I made a serious commitment to paying off those CCs. I never thought I would have paid it off, never ever ever ever * 1000. Determination I think is the key. Again, You are going to get through it.

Thanks. I really appreciate your encouragement. Although I don't like being in this position, it is very nice to know that others can relate to what we're going through and can serve as examples that things CAN work out.

~ Jenney