Miscellaneous Discussion Thread II
Quote: tuttigymQuote: billryanI can help with a few
Carvana seems to be be a good place to buy. I know a few who have and were happy.
I had a Mazda CX5, while my partner had a Rav4. We both preferred the Mazda.
AARP has a program that supposedly will save you money if you buy through a dealer.
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Thank you,billryan, I have read some negative reviews, so I am a bit hesitant. Did Carvana send the car to your residence, and was there a fee or delivery charge? Was the car as advertised in appearance and condition?
tuttigym
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We have a car vending machine about a hundred miles away. While it could have been delivered, I think they drove to the vending machine just because it was there.
We never discussed the details of their purchase.
The only problem I've heard about Carvanna is they don't always notify the proper authorities that they bought a car so it sometimes appears the new buyer has jumped title.
That happens occasionally with dealers, but Carvanna does so many more transfers that the numbers add up.
Quote: avianrandyI have always been a Toyota man myself. Kia and Hyundai just don't seem solid and built cheap...that is just my opinion from when I have had one as a rental
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I had the opposite experience- rented a Soul and liked it so much I went out and bought one! 120K without a problem, then I sold my Soul. (Wait... don't get the wrong idea!) Then I had a couple of Hyundai hybrids, also good experiences.
You see the Kia Soul everywhere in Vegas. Easy to drive and park, and with an awful lot of cargo capacity. The only thing it needs is a hybrid version. I guess they had trouble getting the hybrid tech in that form factor.
I think I’ll be buying another Tiguan when I decide this one is too old. You can get a new Tiguan (plain) for around $30k.
Quote: AutomaticMonkeyQuote: avianrandyI have always been a Toyota man myself. Kia and Hyundai just don't seem solid and built cheap...that is just my opinion from when I have had one as a rental
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I had the opposite experience- rented a Soul and liked it so much I went out and bought one! 120K without a problem, then I sold my Soul. (Wait... don't get the wrong idea!) Then I had a couple of Hyundai hybrids, also good experiences.
You see the Kia Soul everywhere in Vegas. Easy to drive and park, and with an awful lot of cargo capacity. The only thing it needs is a hybrid version. I guess they had trouble getting the hybrid tech in that form factor.
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Best car I ever bought at a decent price was at a garage sale. In 1987 I was looking for antiques and this old lady had a 1980 Volkswagen rabbit for sale for $400. It had 70,000 miles on it and she was just too old to drive it anymore. I didn't even haggle with her on price and I drove that car for 7 years putting very little into it. I had other vehicles also but it was my main driver, I loved that car. So that's my advice go the garage sale route.
Quote: EvenBobAs I have repeatedly said here I have not eaten in a restaurant since 2017 and it was a Chinese buffet. My brother just turned 70 this weekend and his best friend from grade school also turns 70 this weekend so my wife said we should take him out to eat and we took them to a Chinese buffet. All I was interested in was Seafood because I don't eat anything that's considered processed food. So I got a big piece of boiled salmon, some sole, and some giant shrimp with the head and shell still on it. The salmon had been cooked so long it was absolutely tasteless. The sole had been cooked so long you had to cut it with a steak knife, literally. The shrimp had been cooked so long you could not peel it, the outside was super glued on. My brother and his friend of course heaped their plates up with all the other disgusting Delicacies and my wife got a few veggies and some desserts. When they brought the bill to me it was $105. If I had dentures they would have flown out of my mouth. But the other people there with me eat out all the time and they were not shocked at all. $105 for food that was absolute disgusting crap. And people wonder why I haven't eaten out since 2017. My brother said we could have gone to Burger King and it would have cost $70 for the four of us at a fast food restaurant. These are frightening times in which we live. In which you people live cuz I live totally differently.
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Was your fortune cookie stale?
Quote: rxwineQuote: EvenBobAs I have repeatedly said here I have not eaten in a restaurant since 2017 and it was a Chinese buffet. My brother just turned 70 this weekend and his best friend from grade school also turns 70 this weekend so my wife said we should take him out to eat and we took them to a Chinese buffet. All I was interested in was Seafood because I don't eat anything that's considered processed food. So I got a big piece of boiled salmon, some sole, and some giant shrimp with the head and shell still on it. The salmon had been cooked so long it was absolutely tasteless. The sole had been cooked so long you had to cut it with a steak knife, literally. The shrimp had been cooked so long you could not peel it, the outside was super glued on. My brother and his friend of course heaped their plates up with all the other disgusting Delicacies and my wife got a few veggies and some desserts. When they brought the bill to me it was $105. If I had dentures they would have flown out of my mouth. But the other people there with me eat out all the time and they were not shocked at all. $105 for food that was absolute disgusting crap. And people wonder why I haven't eaten out since 2017. My brother said we could have gone to Burger King and it would have cost $70 for the four of us at a fast food restaurant. These are frightening times in which we live. In which you people live cuz I live totally differently.
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Was your fortune cookie stale?
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Gave it to my wife, who knows
Quote: EvenBobIf I had dentures they would have flown out of my mouth. But the other people there with me eat out all the time and they were not shocked at all. $105 for food that was absolute disgusting crap. And people wonder why I haven't eaten out since 2017. My brother said we could have gone to Burger King and it would have cost $70 for the four of us at a fast food restaurant. These are frightening times in which we live. In which you people live cuz I live totally differently.
I have been so surprised by prices lately that I have decided not to pay much attention going forward. When I was at the grocery store yesterday one of the things I bought was a frozen turkey breast. It was $18 when I looked at the tag. I started to put it back and then just said screw it, if that is what you want just pay the price. Hopefully, that will make my life less stressful going forward. I will try not to complain or even act differently when things cost more than I expected. This will be hard for me as I have always been frugal about most things, other than cars, houses, and vacations that I tend to spend my frugally earned money at.
I was the guy at the grocery store that would buy the store brand Mac & Cheese box over the Kraft brand just because it was 4 cents cheaper.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
Quote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
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Saw a list the other day of seven things you should never do. Number two on the list was never ever under any circumstances talk about the details of your finances in public. They listed about half a dozen good reasons why you should never do this. First and foremost, common sense tells you not to do it. But some people just can't help themselves I guess.
Quote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
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I have the same disease you have. Even when it ‘makes sense’ to take out a loan I tend not to. I like he feeling of not owing anyone anything. I’m failing now as I do have a mortgage on my Florida home. I’m sure I’ll pay it off early to return to being debt free.
If for some reason you get a loan with a interest rate higher than you can earn in an account, get that paid off with priority
The older I get, the more I want to avoid debt.
Quote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
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Sounds like a good deal to me. Every so often, a local big box consumer electronics store runs a zero interest, 24 month promotion. One time I bought a high quality digital SLR camera that took the lenses I already had. Another time I upgraded my old tablet(s) to newer models. In both cases I could've either spend the money up front, watched my bank balance lower and panic I don't have any money (which was a delusion on my part) or pay off the balance within the specified time frame and make a few bucks in interest. I chose the latter, and was happy with my decision. There's rational fear, and there's irrational fear.
Quote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
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Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status. If you get $1,000 interest from this little ploy, well, seems like a deal. I'd have never have thought of it. Maybe credit scores will be abolished in the coming major depression next year.
Quote: ChumpChangeQuote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
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Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status. If you get $1,000 interest from this little ploy, well, seems like a deal. I'd have never have thought of it. Maybe credit scores will be abolished in the coming major depression next year.
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My credit score is just shy of excellant and is useless as I don't borrow money.
Things like Insurance premiums are lower based on your credit score. Better Cash back and perks on credit cards. Do you think saving money is useless?Quote: billryanQuote: ChumpChangeQuote: billryanI've written on many occasions about how I hate debt. I was raised in a cash-based world, and over the years, I've developed the habit of paying as I go.
After I paid cash for my house, I needed a new HVAC system. After shopping around, I secured a zero-interest loan for 60 months, as well as an excellent price on the job. I''d been paying $159 a month for it, but paid it off in full in September after selling some gold and silver.
Fidelity offered me a credit card with zero interest for 27 months and 2% rebate into a Fidelity equity account. I've been using it for almost a year, and each month I pay the minimum and put the rest into a money market account. I currently owe almost $10,000 and have nearly the same amount in my account. As of the November statement, I have received $217 YTD in interest.
Owing this money really bothers me. Almost every day, I look at the accounts and want to hit the send button so that I can pay it off entirely. If I don't pay it off, next year's interest will be much higher, but for even a few hundred dollars, I'm not sure it's worth the sick feeling I get every time I see a five-figure bill.
Part of me doesn't want to throw away hundreds of dollars in interest, but the other half hates owing money.
Any thoughts and comments?
link to original post
Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status. If you get $1,000 interest from this little ploy, well, seems like a deal. I'd have never have thought of it. Maybe credit scores will be abolished in the coming major depression next year.
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My credit score is just shy of excellant and is useless as I don't borrow money.
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It's worked well for me, but it may not be for everyone.
Quote: billryanI don't have life insurance, and my car insurance doesn't rely solely on credit scores. Nor do they care about what education I recieved 45 years ago. Once you refuse to worship at the altar of Fair Isaac, you will realize how little power he has-unless you let him. No mortgage, no debt, my monthly income exceeds my monthly expenses, and I can pay cash for most anything I want. My credit score is fine, as I spend five figures on Amazon and Walmart and pay them off monthly, as well as rent the occasional van or truck.
It's worked well for me, but it may not be for everyone.
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Good credit is one of those things that's better to have than not have. No worship involved. I also have no debt or loans and use credit cards just for convenience and the ability to reverse charges if necessary, and that's all you really need to have a very high FICO.
That's not how much was spent using credit cards. It is the balances owed on them. As of this week, the average interest rate is 24%.
The average balance for individuals with a balance is approaching $7,000, and just over half of the people who have credit cards maintain a balance.
For roughly half of the people who use credit cards, they can be a helpful tool., but for those who maintain balances, not so much
In surveys, more than two-thirds of people claim they pay their cards in full each month and never incur any fees associated with their CC use: bankers, and their records disagree.
Adding up Americans' private debts and dividing them among the 265 million adults in the USofA, the average American owes $65,000 in debt. That is $130,000 per couple for young families just starting out, and doesn't include the 38 trillion our government owes.
Quote:The book "Coma" by Robin Cook is a medical thriller about a medical student who uncovers a conspiracy behind a string of patients falling into comas after routine surgeries. Her investigation reveals a black market for human organs, run by a sinister organization that uses the hospital to harvest organs from comatose patients. The student races against time and a rising threat to her life to expose the truth.
I remember this book because I remember reading about him studying bestsellers looking for commonalities/
Quote:Research-Driven Approach: After his first novel failed, Cook studied bestsellers and developed a meticulous approach to engaging readers. He applied techniques to build suspense and ensure his stories went beyond mere entertainment, even doing additional research on topics like anesthesia to ensure accuracy.
Quote: ChumpChange
Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status.
I believe it is just the opposite. Making minimum payments is exactly what the creditors want and will increase your score as long as you don't miss payments. Of course, this assumes that your credit is not maxed out which is a negative on the score.
I still have a small mortgage but I use my credit cards daily. In any given month I probably owe $5000 or so on my credit cards but I pay them off every month as I refuse to pay interest on them. We also use 0% interest cards to float things for 12 to 24 months.
Quote: DieterIf you don't pay interest, it's not really debt*.
OK, sure, technically it's a debt if you owe. But a debt is not Debt, the interest-compounding wealth-eater that you should be duly concerned over. One is friendly payment terms, the other is a profit center for the financiers. If you worry more about paying interest than being a borrower, I think you'll be better off.
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Debt is an obligation to repay a sum.. It has nothing to do with interest.
Almost every 0% offer I receive is for balance transfers and involves an upfront charge of 3-5%. If you transfer $10,000 to a zero-interest card, it costs you $300-$500 upfront, so you are simply front-loading the interest. Many of these no-money-down, no-interest for 24-month offers require payment in full by a date, or you end up owing interest on the entire amount retroactively. People enter them with the greatest of intentions and then shit happens. As it always does, which was why they needed a loan in the first place.. A person who is in debt is not entirely free.
Quote: billryanQuote: DieterIf you don't pay interest, it's not really debt*.
OK, sure, technically it's a debt if you owe. But a debt is not Debt, the interest-compounding wealth-eater that you should be duly concerned over. One is friendly payment terms, the other is a profit center for the financiers. If you worry more about paying interest than being a borrower, I think you'll be better off.
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Debt is an obligation to repay a sum.. It has nothing to do with interest.
Almost every 0% offer I receive is for balance transfers and involves an upfront charge of 3-5%. If you transfer $10,000 to a zero-interest card, it costs you $300-$500 upfront, so you are simply front-loading the interest. Many of these no-money-down, no-interest for 24-month offers require payment in full by a date, or you end up owing interest on the entire amount retroactively. People enter them with the greatest of intentions and then shit happens. As it always does, which was why they needed a loan in the first place.. A person who is in debt is not entirely free.
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I agree that balance transfer fees are fundamentally the same as interest.
Quote: DRichQuote: ChumpChange
Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status.
I believe it is just the opposite. Making minimum payments is exactly what the creditors want and will increase your score as long as you don't miss payments. Of course, this assumes that your credit is not maxed out which is a negative on the score.
I still have a small mortgage but I use my credit cards daily. In any given month I probably owe $5000 or so on my credit cards but I pay them off every month as I refuse to pay interest on them. We also use 0% interest cards to float things for 12 to 24 months.
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Credit card companies hate your guts if you pay off the amount you owe every month, they don't make any money off you. This is exactly what my wife does. A few years ago she had a perfect credit score which I didn't think was possible. Back in 2008 on one of her cards, might have been Bank of America, she had a $100,000 credit limit which she never used. Then the financial crisis of 2008 hit and overnight they cut it down to $10,000 and she blew a gasket. She immediately closed her account and went to Chase. She was never going to use that credit, but she took it as a personal insult.
When I paid my mortgage off, my credit score immediately went down 50 points! FICO likes it when you have a loan with fixed payments (assuming you actually make them in full and on time)!Quote: DRichQuote: ChumpChange
Have you checked your credit score recently? I don't know what moves the scores around but making minimum payments for 27 months seems like a way to lower your score to deadbeat status.
I believe it is just the opposite. Making minimum payments is exactly what the creditors want and will increase your score as long as you don't miss payments. Of course, this assumes that your credit is not maxed out which is a negative on the score.
I still have a small mortgage but I use my credit cards daily. In any given month I probably owe $5000 or so on my credit cards but I pay them off every month as I refuse to pay interest on them. We also use 0% interest cards to float things for 12 to 24 months.
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The merchant pays the first month's interest*, so though they like it if you make minimum payments, they know they are doing just fine anyway and very much want your business. They do quite well with somebody who pays off the card monthly but also charges a new amount each monthQuote: EvenBob
Credit card companies hate your guts if you pay off the amount you owe every month, they don't make any money off you.
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* Interest in advance, too, the best kind!
The average swipe fee is 2.35%
A family goes to the store and buys $200 worth of groceries. If you pay cash, the store gets the entire $200. By using plastic, the shop receives $195.40.
The store just sold $200 worth of merchandise for $195. The $4.70 could have gone to lowering prices, or raising wages or to the stockholders.
It doesn't sound like much but when your business does hundreds of transactions a day it cuts into your ability to grow and expand.
Quote: odiousgambitThe merchant pays the first month's interest*, so though they like it if you make minimum payments, they know they are doing just fine anyway and very much want your business. They do quite well with somebody who pays off the card monthly but also charges a new amount each monthQuote: EvenBob
Credit card companies hate your guts if you pay off the amount you owe every month, they don't make any money off you.
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* Interest in advance, too, the best kind!
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"They dislike such customers because they make no money
from them either on interest or in late charges. In an interview
with an executive from a credit card company he said the
internal language for such a customer is freeloader because
they get credit for a month and it cost them nothing.'
Quote: billryanKeep in mind that even at no interest, debt affects your current and future cash flow. A smaller cash flow affects your ability to save for the future, and ripples into every aspect of your and your family's lives.
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I think trying to capitalize on it requires discipline, like any other AP move.
You have to have something better (more lucrative) to do with the money in the interim.
For a lot of people, just finding out that the store offering "18 months same as cash" terms reports account history to the credit bureau and setting up 16 automatic payments will help them.
Otherwise, if you can't trust yourself not to donk off the money in the interim, yes, pay it off ASAP.
Quote: EvenBobQuote: odiousgambitThe merchant pays the first month's interest*, so though they like it if you make minimum payments, they know they are doing just fine anyway and very much want your business. They do quite well with somebody who pays off the card monthly but also charges a new amount each monthQuote: EvenBob
Credit card companies hate your guts if you pay off the amount you owe every month, they don't make any money off you.
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* Interest in advance, too, the best kind!
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"They dislike such customers because they make no money
from them either on interest or in late charges. In an interview
with an executive from a credit card company he said the
internal language for such a customer is freeloader because
they get credit for a month and it cost them nothing.'
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They make swipe fee money and they sell data on their high value customers as was said. The swipe fee may be paid by the retailer, but one can pretend that never affects the price we pay.
Quote: rxwineQuote: EvenBobQuote: odiousgambitThe merchant pays the first month's interest*, so though they like it if you make minimum payments, they know they are doing just fine anyway and very much want your business. They do quite well with somebody who pays off the card monthly but also charges a new amount each monthQuote: EvenBob
Credit card companies hate your guts if you pay off the amount you owe every month, they don't make any money off you.
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* Interest in advance, too, the best kind!
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"They dislike such customers because they make no money
from them either on interest or in late charges. In an interview
with an executive from a credit card company he said the
internal language for such a customer is freeloader because
they get credit for a month and it cost them nothing.'
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They make swipe fee money and they sell data on their high value customers as was said. The swipe fee may be paid by the retailer, but one can pretend that never affects the price we pay.
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I just read an article on this that says by far the biggest profit companies make from credit cards is off the interest we pay on minimum payments every month. It's gigantic to their bottom line and dwarfs anything the merchants pay. So yeah, if you pay your card off every month the credit card company is still making a tiny bit of money off of you but they really hate your guts and consider you a freeloader. If everybody did that they would go out of business almost immediately.
Quote: EvenBob
I just read an article on this that says by far the biggest profit companies make from credit cards is off the interest we pay on minimum payments every month. It's gigantic to their bottom line and dwarfs anything the merchants pay. So yeah, if you pay your card off every month the credit card company is still making a tiny bit of money off of you but they really hate your guts and consider you a freeloader. If everybody did that they would go out of business almost immediately.
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On the other hand, some of those minimum payment people paying all that interest are going to go bankrupt or just not pay, and the credit card company is going to have to eat the principal. (Sounds like a horrible schoolboy fantasy, phrased like that.) That's their biggest expense as well. They might be better off with the easy fees and sure payment of the people who don't carry balances.
Quote: DieterQuote: billryanKeep in mind that even at no interest, debt affects your current and future cash flow. A smaller cash flow affects your ability to save for the future, and ripples into every aspect of your and your family's lives.
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I think trying to capitalize on it requires discipline, like any other AP move.
You have to have something better (more lucrative) to do with the money in the interim.
For a lot of people, just finding out that the store offering "18 months same as cash" terms reports account history to the credit bureau and setting up 16 automatic payments will help them.
Otherwise, if you can't trust yourself not to donk off the money in the interim, yes, pay it off ASAP.
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Most of these offers are honeypots. They dangle a few thousand dollars at zero percent for a year or two. It's not enough to do something life-changing, but it's enough to get you into trouble or used to being in debt.
You pay $60 and receive $2,000 at 0% interest for a two-year period. It either goes towards bills or you buy more stuff. It's not even $20 a week out of your paycheck, so it's no big deal. Now that you have some credit history, you'll receive a few more offers like that, and soon you'll be paying $60 to transfer a debt for items you no longer have.
If everybody used a charge card and paid their balance off each cycle, it would be a great system. The problem is that even the banks say more than half the people run balances, and the average balances are out of control.. A young couple with $15,000 in credit card debt could be paying $300 in interest each month. That is a huge nut to many people in this country.
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I prefer not to use credit cards and only use them when necessary. I tried this experiment but it was a failure. My happiness is worth more than whatever interest I'd earn next year.
Quote: AutomaticMonkeyQuote: EvenBob
I just read an article on this that says by far the biggest profit companies make from credit cards is off the interest we pay on minimum payments every month. It's gigantic to their bottom line and dwarfs anything the merchants pay. So yeah, if you pay your card off every month the credit card company is still making a tiny bit of money off of you but they really hate your guts and consider you a freeloader. If everybody did that they would go out of business almost immediately.
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On the other hand, some of those minimum payment people paying all that interest are going to go bankrupt or just not pay, and the credit card company is going to have to eat the principal. (Sounds like a horrible schoolboy fantasy, phrased like that.) That's their biggest expense as well. They might be better off with the easy fees and sure payment of the people who don't carry balances.
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But, the majority of customers do not do that and that's why the credit card business is so extremely lucrative.
a man gropes and kisses the female President of Mexico while she was talking to constituents on a public street - pretty shocking
reading about this - apparently this kind of thing happens to a lot of women in Mexico, in crowded buses and elsewhere
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Quote: billryanThe card company earns between 1 and 3% of every transaction, so high-volume accounts generate revenue for them, regardless of how you pay off the card. Some high-volume businesses, like a 7-11, can end up paying more in swipe fees than they make in profit.
The average swipe fee is 2.35%
A family goes to the store and buys $200 worth of groceries. If you pay cash, the store gets the entire $200. By using plastic, the shop receives $195.40.
The store just sold $200 worth of merchandise for $195. The $4.70 could have gone to lowering prices, or raising wages or to the stockholders.
It doesn't sound like much but when your business does hundreds of transactions a day it cuts into your ability to grow and expand.
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i worked for a company recently that processed credit cards. Our company was doing over $200 billion a year in credit card processing so every fractional percentage was a lot of money.
https://abcnews.go.com/International/password-louvres-video-surveillance-system-louvre-employee/story?id=127236297Quote: ABC NewsPassword to Louvre’s video surveillance system was 'Louvre'...
If they hate your guts they have a funny way of showing it. Those who pay off the card every month get great new card offers all the time, plus all the perks, including merchant offers and cash back.Quote: EvenBob
I just read an article on this that says by far the biggest profit companies make from credit cards is off the interest we pay on minimum payments every month. It's gigantic to their bottom line and dwarfs anything the merchants pay. So yeah, if you pay your card off every month the credit card company is still making a tiny bit of money off of you but they really hate your guts and consider you a freeloader. If everybody did that they would go out of business almost immediately.
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A tiny bit of money? You may be discounting the value of 'interest in advance', that they hit the merchant with. I remember watching an Edward G. Robinson movie where he played a loan shark. He was portrayed as evil for his high interest rates and particularly for taking interest in advance. Usury!
Later I went for my first mortgage and got hit with having to pay 'points' on the mortgage. I had never heard of that and asked around and found out it's just 'interest in advance.' Very key to the mortgage business, and it all gets hidden as some sort of mumbo jumbo. So you think your paying xyz interest on your mortgage, something good like 2.75%? Think again ... add those points back on.
So the Robinson character faced a charge that interest in advance was usury? All he had to do was say " my customers have to pay points is all, same thing the bank down the street charges." Then it would be, OK, fine, perfectly respectable ................. ha ha
Quote: odiousgambit[If they hate your guts they have a funny way of showing it. Those who pay off the card every month get great new card offers all the time, plus all the perks, including merchant offers and cash back.
When I was younger I played the credit card game hard. At one point I probably had between 50 and 75 active cards. Today I will take advantage of great opportunities but don't bother with most.
