Credit Card PIF or not

[Caoineag]

You know, the funny thing is, my parents always seemed to be in debt. They had 5 kids truckin' around to sporting events, and we cost them more than their income! So if anything, that taught me it was OK to be in debt. I have not been able to break the mold yet, but I'm working on it!

Yeah same here. Part of the reason why as smart as I was about not paying interest, I didn't know anything about Emergency Funds :O

[ksluis62]

Yes, I'm following the Ramsey plan here. I have a baby emergency fund now, and am apply all my energy to credit card debt reduction now. The "grown-up" EF will have to wait until I get rid of the debt.

[GREENBACK]

I wonder if cc companies know that there are certain #'s of people that are pretty secure financially but are complacent about carrying small balances ( I'm sure they do). They offer a pretty decent apr to them and it only amounts to maybe 5 or 10 bucks per month. It may only be a few dollars of interest paid by the individual but think of that mulitiplied by thousands of these types of personalities.

[ksluis62]

I wonder if cc companies know that there are certain #'s of people that are pretty secure financially but are complacent about carrying small balances ( I'm sure they do).

You are absolutely correct. CC companies have a complete bag of tricks to exploit human nature for their profit. In addition, they feel great if you pay your bill a couple days late. "Sloppy payers" always pay, but sometimes pay a little late. Very profitable. You've hit my hot button, and I blog about these issues at blog-dueminder-com.

The recent Fed Reserve rules will help out (though not active until 2010), and the House passed the Credit Cardholders Bill of Rights, but the Senate ran out of time. That one will help too, if passed. But the best thing each of us can do is be vigilent, know their tricks, and get out or stay our of debt to avoid the pitfalls altogether.

[simpleyme]

I wonder if cc companies know that there are certain #'s of people that are pretty secure financially but are complacent about carrying small balances ( I'm sure they do). They offer a pretty decent apr to them and it only amounts to maybe 5 or 10 bucks per month. It may only be a few dollars of interest paid by the individual but think of that mulitiplied by thousands of these types of personalities.

that's what kills me is that they offer me really crappy rates and I do not get why
we have great credit(we used to borrow money)

when I used to care I called and the pat answer is you do not carry a balance so what does it matter?
exactly what does it matter if you gave me a low rate not like you would lose any money since I am not going to use it anyway,I personally cannot risk ever paying a late fee or a high interest

what is considered a decent APR on a credit card anyway? all my stupid cards are between 10 and 19 percent super crappy no way I would use them anywere for anything

[ksluis62]

My best card is at 8.9%, a variable rate card from USAA. It had gotten down to 6.9% until they decided that was too low, and reset the minumum to 8.9%. That was disappointing, but its still my best card, and I've had the account for almost 20 years. I have quite a few other cards ranging from 10% on purchases up to just over 20%. I don't carry a balance on any of them, except for low-interest special offers.

[maat55]

I've been debt free a couple times in my life, but always ended up back into major debt. This last time has been the worst, but I know my mentality that got me into it now. From now on, all my finances will be heavily controlled and debt will be minimal. I'd love to live on a cash basis.

One of my finance professors said living on a cash basis is simple, but not easy.

I'm one who believes that if you want to do something, just do it. Want to quit smoking, don't smoke, want to live on a cash basis, don't borrow.

Plan in advance for the things you end up borrowing for.

You have to make it your lifestyle philosophy like deciding you won't have an affair or steal from a store etc.

Many don't know how not to live with debt, but it is very doable if you really want to.

There is nothing wrong with using limited amounts of debt for gain like using CC's for rewards when PIF or buying a property that in most cases appreciates in value.

I don't mean to preach, i'm just a debtfree cheerleader.

[Caoineag]

...

what is considered a decent APR on a credit card anyway? all my stupid cards are between 10 and 19 percent super crappy no way I would use them anywere for anything

I never had a credit card with a higher apr than 8% until Bank of America and Capital One raised their rates across the board. One of my cards was a fixed apr of 6.9%. All of these cards would regularly offer me 0-3% apr with $0 transaction fees for 1 1/2 years at a time. I haven't seen deals like that in awhile but that was what I used to get all the time.

I didn't actually realize anyone had higher than 19.99% until I worked in divorce cases and saw 36% My first credit card had the 19.99% apr but the apr dropped like a rock from that first year.

[GREENBACK]

I can't really say why they give certain rates to certain people. I don't have a card with a rate over 7% and I have a couple of the notoriously bad ones for this.

[GREENBACK]

Meant to mention one that is 10% but is a rewards card.

[simpleyme]

I can't really say why they give certain rates to certain people. I don't have a card with a rate over 7% and I have a couple of the notoriously bad ones for this.

other than teaser rates and transfer checks(hello nothing to transfer) I have never had a rate that "low" but really even then I do not like paying 7 percent on anything ,makes me feel queasy ,I know PIF and it don't matter ;-)

there must be a formula , but since I do not borrow money anymore it does not matter but I just honestly believe I deserve the best rates on everything (even if the cc co does not )