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Weekly Links: 8/1/9
2009/08/01 at 4:06 am
Posts from my Fellow PF Bloggers » JoeTaxpayer
2009/08/02 at 6:09 am
SPENDonLIFE
2009/09/04 at 11:00 am

{ 4 comments… read them below or add one }

JoeTaxpayer 2009/07/31 at 10:41 am

Great post, and I’ll agree that the CC companies are betting against me. But the miles, Apple computer (there was a card thru Citi that gave a 5% credit to apple purchases. Long since canceled), TVs (through Sharper Image card) and $8K in the kid’s 529 account, and no interest paid, not a dime, tels me that as long as the cash is there and the purchase is not impulsive, charge it and pay in full.
I am the biggest anti-MMAer going. I top the google search for “HELOC shuffle” the premise of the money merge scam. You’re in for a weekly Sunday link…..
.-= JoeTaxpayer´s last blog ..My Life According to Billy Joel =-.

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Kevin@OutOfYourRut 2009/08/02 at 8:56 am

Paul–Amen to everything you wrote! An extra point on reverse mortgages though…

Lenders are hawking these, playing on the fact that the elderly are even more afraid to lose their houses than they are to be impoverished. Many equate losing their house with poverty, even though selling it would do a better job of helping them avoid it.

The reverse mortgage companies are calling my mom constantly and even conducting seminars at the local senior citizens centers. I contacted one to get some information, and was put on the contact list for periodic follow up, even after expressing my thoughts that it’s a bad deal.

I’m afraid a lot of the elderly are taking these loans as a way of avoiding the reality that it’s time to sell. When the time comes that they realize this and decide they need to sell, there’ll be a lot less equity coming out of the sale.

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Kosmo @ The Casual Observer 2009/08/03 at 7:08 am

The card companies also make money from the merchant fees, so even if you pay off your balance every month, they make money … so convincing you to use their card instead of a competitors is worth the money they pay out in rewards.

There is, of course, a subset of the population that does get into problems with this, and the companies make some big money off them. You should NEVER use a card just because it offers rewards; however, if you must make the purchase anyway, why not get the rewards.

I get hundreds of dollars in rewards every year and haven’t paid a dime in finance charges in a decade. My gas card (Amoco) gives me 5% back. I need to buy gas anyway, and I like the convience of pay at the pump and the itemized bill at the end of the month, so this makes geat sense.
.-= Kosmo @ The Casual Observer´s last blog ..Beginner’s Guide to Fiction Writing =-.

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Credit Guru 2009/09/07 at 9:15 pm

Excellent post. I second the rewards aspect of credit cards, it’s a pretty sweet deal if you know how to work them. I pay my balance in full each month, accrue no finance charges, and I get a $250 best buy card in the mail every few months (reward of my choice, I’m a tech junkie). So essentially I’m able to spend a free $250 just by using my credit card instead of my debit card for purchases. Not a bad deal!
.-= Credit Guru´s last blog ..Michael Jackson’s credit score was as bad as his nose job =-.

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