Andrea, thanks for the heads up. I have been putting groceries on my credit card. My unemployment ran out mid April and I am hunting furiously for a job, even a temp job. Agencies won't let me walk in; they ask to see my resume and /or email me msoffice tests; then they don't call back! (whine......)But I continue to take actions, be positive as possible (at least in the outside world)
I just paid my balance. In full. Lots of grocery and pharmacy payments. So thanks again!
Fantastic timing! As a peeved customer who was just charged three times for a single online purchase greater than 100$ (which has yet to arrive), this is exactly the tract I need to take. When I contacted the company's CS department, I was met with an unsympathetic "we don't see it here, you'll need to mail us a copy of your credit card statement, then we'll get back to you if we feel your complaint has merit" I've had to contact my credit card company and file a dispute, where it very clearly was charged to my account, and I'll no doubt have to pay the interest on at least one of the false charges. I think in this case a respectful letter of dissapointment will at least make me feel less frustrated and more powerful as a consumer.
Fantastic timing! As a peeved customer who was just charged three times for a single online purchase greater than 100$ (which has yet to arrive), this is exactly the tract I need to take. When I contacted the company's CS department, I was met with an unsympathetic "we don't see it here, you'll need to mail us a copy of your credit card statement, then we'll get back to you if we feel your complaint has merit" I've had to contact my credit card company and file a dispute, where it very clearly was charged to my account, and I'll no doubt have to pay the interest on at least one of the false charges. I think in this case a respectful letter of dissapointment will at least make me feel less frustrated and more powerful as a consumer.
I called an airline to complain about our horrible service and got an insincere apology. I wrote a letter that detailed our experience (no ranting) and got 2 first class vouchers anywhere we wanted in the US. The letter not only gets results, but somehow, just writing it is a little therapeutic.
This is the kind of thinking that really bothers me. How many more times will an increase happen before it's no longer acceptable? Why is there a sales tax in the first place when both the Federal and State governments take money out of your payroll? Out government has almost always tried to find new ways to pull the tax wool over our eyes. Add up everything you get taxed on, including your payroll, and you will see that we are taxed far more than you realize. Everyone accepts taxes as a "necessary evil" when they really aren't, since there were NO payroll taxes before the 1900's.
Wonderful ideas. I have a small stool that I covered with the leg of a pair of jeans -- the seam goes diagonally across the (square)seat.
You can use denim to make a tube for under the door -- a draft dodger. Fill with sand or fiberfill. I've done this with denim, but not from jeans; however, I don't see why jeans wouldn't work.
I just asked for and got a bunch of unwearable old jeans on Freecycle. They are very long, and I'm hoping to seam them in vertical stripes to cover a padded headboard. If it doesn't work, at least I have a bunch of other ideas now! Thank you!
If we're talking about Filipino culture, hell yeah. Our culture supports savings. Why? We have a very poor medical insurance policies (they don't cover critical illness like heart disease, cancer etc) hence, we don't want to end up emptying all our savings just for medicines. We start saving early. Thats just the way of life living in 3rd world country...
The notion that people are only paying 15% on their dividents is false. I pay 15 % on my company profit up to 50,000, then another 15% divident tax again. Most companies are paying 35% , the you pay the 15 %. America is tax hell so don't be surprised why businesses have been dismantling and others just not locating here. There are plenty of freer countries around the world. As far as Obama paying for roads and bridges, that just makes driving appear cheaper than it is, wastes fuel and promotes urban sprawl. Taxes should be paid by the users. If he said he will put a $5/gal tax and at the same time repeal all income, capital gains and divident taxes I would be all for it. It would eliminate enormous amount of coruption, favoritism and compliance costs. At the same time there will be millions of people finding ways to conserve fuel, the investment in other energy would explode free of taxes and complicated credits schemes.
what happened to my valid comments about paying mortgage with a creditcard? It's all how you shuffle the cards and pebble under the cups but make sure you win not the credit companies who seek to suck you dry because of greed.
Some valid points here. There is another way to shield yourself from junk fees and random rate hikes: get to know your local bank manager and become a customer they want to keep.
Many of the problems described are particular to national or other large banks. Many regional or smaller banks haven't gotten involved up in subprime and credit card lending, and they're less likely to ratchet up the rates & fees. National banks may offer more services (or not), but exposure to macro trends is a consequence of dealing with the biggest banks.
Get to know your branch manager and build the relationship with savings, checking and loans. The bank where I work actually sets a value on each relationship based on account types, balances, and transaction types. Good, profitable customers get good treatment. (Profitable customers are not necessarily deadbeats and slow payers who rack up fees)
One of the first rules of biking is to never break while you are turning. That's an excellent way to crash. I've never tried this method you're talking about, but I wouldn't recommend it from what I'm reading.
One of the links within the article will take you to an NPR site with the report and an interview with Robert Manning; I heard about it on the radio last night and researched it a little more today. I've also heard, probably also on NPR (can you tell I'm an NPR junkie? I don't have a TV) that banks are coming up with new and clever ways to charge you for normal banking transactions - so keep an eye on your bank statements, too.
Just wanted to emphasize that, especially right now, you should double-check ALL interest rates, not just credit cards. The Home Equity Line on our house has an adjustable rate; I noticed the last time that prime changed, our rate went UP, not down as it should have.
It took forever to get it straightened out (my bank claims not to know what happened, distressingly), but it was definitely worth doing. Now I watch that statement like a hawk.
second, out of curiosity, where did you hear about this? It's pretty scary to think that they might consider me an at-risk customer because of particular purchases.
Ah, the ol' "they pretty much deserve what they get" argument. My personal favorite. I suppose anyone who has a revolving balance must DESERVE to have their rates raised, even if they pay regularly? And it's no big deal to have your rates raised because you made a decision to purchase a cheaper item?
I didn't say that there was an interest rate crisis; I said that there's a revenue crisis in the banking industry. This is caused by the subprime fallout, and is creating incentives for banks and lending institutions to bilk customers for more money, even if the customers are playing by the rules and trying to build good credit.
Interest rates do make a difference, so I don't think it can be considered the least of anyone's concerns. Let's say someone has $5,000 of credit card debt, and are making payments of $200 a month at 12% interest. At that rate, they can pay down the debt in 29 months. If that interest rate goes up tp 25%, it will take 40 months to pay it off. That's an additional 11 months - $2200!
And it's not like every line of credit is opened by some greedy bastard who just wants some play money. You have to establish credit in order to qualify for a mortgage or a business loan. And speaking of business loans, it's becoming so difficult to secure these loans now - so small businesses are turning to lines of credit in order to get started.
Two other things to consider: a revolving balance is not always a bad thing, credit rating-wise. And closing an account does ding your credit a bit.
I'm going to have to read this book. As the dollar continues to weaken over the next few years, I think there will be many more books like this one - which will go into more discussion about the many other factors that led up to the economic collapse of the largest superpower.
America will rebuild, because we still have the best legal system in the world which makes it the best place in the world to start a business. But, it may take 10-20 years to recover like it did with the Great Depression.
1) People who already have substantial debt accumulated on their credit cards can always just tell the credit card company that "Nope, I'm not going to agree to the new rules, please close my account and I will pay back everything I owe under the original terms and interest rate. These people should be closing their accounts anyway as clearly they have already spent more than they should have and have to spend less than what they earn to get out of it to start with. If they still need the credit cards then it's clearly a whole different issue and no matter what the interest rates are they are screwed.
2) I feel no remorse for people who have ran up credit card bills in hopes of taking out a home equity loan to cover it. That is just plain dumb and should be punished as such.
3) You also write about people who use their credit cards to get miles or rewards. These people better not have any balance on their cards. If they do they most definitely lose more on the interest than what they make back on the rewards. And if they do carry a balance they should stop spending money on this card and they immediately grouped with the people under section 1, hence no problem.
I have read at least a dozen different spins and articles on this credit card interest rate crisis. I don't see it as a problem, it's only a problem for people who carry heavy loads of debt and can't live without getting into more debt. And for these people the interest hike is the least of their worry.
Not to mention that every single one of them signed a binding contract with the credit card companies in the first place...
Taxes versus government services is a red herring. Everybody should read the book "Free Lunch." It's disturbing as hell and explains how hidden government "pork" giveaways to big business are the REAL cause of the sorry state of high taxes and government services. I guarantee it'll make your blood boil.
I don't mind paying taxes when I can see a return on my investment, but the taxpayer is definately getting jipped no matter what the location. I used to live in New Hampshire, which doesn't have a sales tax except 5.85% on "luxuries" like hotel rooms and restaurant meals. There's also NO income tax on earned income, only corporate and unearned income like capital gains. Property taxes are fairly high, but it stays in the town collecting the taxes. Crime is low in nearly all areas, most roads are meticulous, the schools don't have a lot of "frills" but most teach a solid basic education. The only towns which have had problems are towns that foolishly let problem businesses or housing tracts overstrain the town infrastructure with "pork" due to corrupt zoning boards and the other towns are loathe to bail them out. Because everybody knows a $2000 request to repaint Town Hall will be coming directly out of their property tax bills (and not some phantom "state" or "federal" money), town meetings are heavily attended and the person asking to spend money has to answer to the taxpayers. However, if the need is justified, the money gets voted approved. It's not perfect, but I think we've made a huge mistake getting away from simple cause-and-effect taxation. Sales taxes (on anything but food) are a generally fair way to tax because it taxes consumption, but NOT if the money is only getting siphoned away for some pork giveaway to a megacorporation.
Check your facts Julie. They have won the award for their region.
If any of your are skeptical I invite you to go to www.payoffyourhomenow.org and fill out a free analysis. We will never take any of your private personal information, NO ssn's, NO credit reports etc. Just put in your income, mortgage, and other creditor info accurately and I guarantee I will generate a report that will blow away any DIY mortgage acceleration by 1-2 years, or more. Please be sure to include a real email address so I can email your report. I'm happy to provide any of the articles I've mentioned. I'm happy to do a Go To Meeting/Webinar presentation to all takers to show how the Money Merge Account is the fastest way to complete financial freedom from all of your debt. Or simply watch the how it works video at www.payoffyourhomenow.org With our new version 4 you don't even have to be a homeowner. The Money Merge Account works with HELOC's, PLOC's (Personal Lines Of Credit), Credit Cards, and now a system for those who have poor credit and no way to get any line of credit at all. The Money Merge Account is so much more than an online software system. It's a coaching and support system with live telephone coaches available to you 6 days a week 16 hours a day. Again I challenge each and every one of you to go to www.payoffyourhomenow.org for free analysis and accept my invitation to attend a Go To Meeting to find out how it works.
James Stubbs
I've been meaning to get my hands on a copy of this book, so I appreciate the review, Philip.
Worries about resource allocation have kept me up at night recently. It's only a matter of time before we all have to pare down our lifestyles significantly so that others can live with, oh, electricity and motorized transportation. That, or we all go back to mule-pulled carts as a means of commuting. :)
Andrea, thanks for the heads up. I have been putting groceries on my credit card. My unemployment ran out mid April and I am hunting furiously for a job, even a temp job. Agencies won't let me walk in; they ask to see my resume and /or email me msoffice tests; then they don't call back! (whine......)But I continue to take actions, be positive as possible (at least in the outside world)
I just paid my balance. In full. Lots of grocery and pharmacy payments. So thanks again!
Fantastic timing! As a peeved customer who was just charged three times for a single online purchase greater than 100$ (which has yet to arrive), this is exactly the tract I need to take. When I contacted the company's CS department, I was met with an unsympathetic "we don't see it here, you'll need to mail us a copy of your credit card statement, then we'll get back to you if we feel your complaint has merit" I've had to contact my credit card company and file a dispute, where it very clearly was charged to my account, and I'll no doubt have to pay the interest on at least one of the false charges. I think in this case a respectful letter of dissapointment will at least make me feel less frustrated and more powerful as a consumer.
Fantastic timing! As a peeved customer who was just charged three times for a single online purchase greater than 100$ (which has yet to arrive), this is exactly the tract I need to take. When I contacted the company's CS department, I was met with an unsympathetic "we don't see it here, you'll need to mail us a copy of your credit card statement, then we'll get back to you if we feel your complaint has merit" I've had to contact my credit card company and file a dispute, where it very clearly was charged to my account, and I'll no doubt have to pay the interest on at least one of the false charges. I think in this case a respectful letter of dissapointment will at least make me feel less frustrated and more powerful as a consumer.
Is it just a complaint? Do you specifically ask for a replacement?
I called an airline to complain about our horrible service and got an insincere apology. I wrote a letter that detailed our experience (no ranting) and got 2 first class vouchers anywhere we wanted in the US. The letter not only gets results, but somehow, just writing it is a little therapeutic.
This is the kind of thinking that really bothers me. How many more times will an increase happen before it's no longer acceptable? Why is there a sales tax in the first place when both the Federal and State governments take money out of your payroll? Out government has almost always tried to find new ways to pull the tax wool over our eyes. Add up everything you get taxed on, including your payroll, and you will see that we are taxed far more than you realize. Everyone accepts taxes as a "necessary evil" when they really aren't, since there were NO payroll taxes before the 1900's.
Thanks for the update regarding last week's event; I did find the link this a.m. just in case anyone wants to see it:
List of regional award winners and criteria
Wonderful ideas. I have a small stool that I covered with the leg of a pair of jeans -- the seam goes diagonally across the (square)seat.
You can use denim to make a tube for under the door -- a draft dodger. Fill with sand or fiberfill. I've done this with denim, but not from jeans; however, I don't see why jeans wouldn't work.
I just asked for and got a bunch of unwearable old jeans on Freecycle. They are very long, and I'm hoping to seam them in vertical stripes to cover a padded headboard. If it doesn't work, at least I have a bunch of other ideas now! Thank you!
Bonita
If we're talking about Filipino culture, hell yeah. Our culture supports savings. Why? We have a very poor medical insurance policies (they don't cover critical illness like heart disease, cancer etc) hence, we don't want to end up emptying all our savings just for medicines. We start saving early. Thats just the way of life living in 3rd world country...
Hey I added your blog into my blog-roll! Cheers!
Sam
http://fixmypersonalfinance.com/
The notion that people are only paying 15% on their dividents is false. I pay 15 % on my company profit up to 50,000, then another 15% divident tax again. Most companies are paying 35% , the you pay the 15 %. America is tax hell so don't be surprised why businesses have been dismantling and others just not locating here. There are plenty of freer countries around the world. As far as Obama paying for roads and bridges, that just makes driving appear cheaper than it is, wastes fuel and promotes urban sprawl. Taxes should be paid by the users. If he said he will put a $5/gal tax and at the same time repeal all income, capital gains and divident taxes I would be all for it. It would eliminate enormous amount of coruption, favoritism and compliance costs. At the same time there will be millions of people finding ways to conserve fuel, the investment in other energy would explode free of taxes and complicated credits schemes.
Didn't happen. I just didn't recognize my own post like an idiot.
what happened to my valid comments about paying mortgage with a creditcard? It's all how you shuffle the cards and pebble under the cups but make sure you win not the credit companies who seek to suck you dry because of greed.
Some valid points here. There is another way to shield yourself from junk fees and random rate hikes: get to know your local bank manager and become a customer they want to keep.
Many of the problems described are particular to national or other large banks. Many regional or smaller banks haven't gotten involved up in subprime and credit card lending, and they're less likely to ratchet up the rates & fees. National banks may offer more services (or not), but exposure to macro trends is a consequence of dealing with the biggest banks.
Get to know your branch manager and build the relationship with savings, checking and loans. The bank where I work actually sets a value on each relationship based on account types, balances, and transaction types. Good, profitable customers get good treatment. (Profitable customers are not necessarily deadbeats and slow payers who rack up fees)
It's good to hear that people are getting their bags!
I'm sure that unless you need the money or it was a significant burden it might be best for the money to go to the charity...imo anyway.
One of the first rules of biking is to never break while you are turning. That's an excellent way to crash. I've never tried this method you're talking about, but I wouldn't recommend it from what I'm reading.
Thanks, Barbara; good to be back. :)
One of the links within the article will take you to an NPR site with the report and an interview with Robert Manning; I heard about it on the radio last night and researched it a little more today. I've also heard, probably also on NPR (can you tell I'm an NPR junkie? I don't have a TV) that banks are coming up with new and clever ways to charge you for normal banking transactions - so keep an eye on your bank statements, too.
Just wanted to emphasize that, especially right now, you should double-check ALL interest rates, not just credit cards. The Home Equity Line on our house has an adjustable rate; I noticed the last time that prime changed, our rate went UP, not down as it should have.
It took forever to get it straightened out (my bank claims not to know what happened, distressingly), but it was definitely worth doing. Now I watch that statement like a hawk.
first, welcome back Andrea!
second, out of curiosity, where did you hear about this? It's pretty scary to think that they might consider me an at-risk customer because of particular purchases.
Ah, the ol' "they pretty much deserve what they get" argument. My personal favorite. I suppose anyone who has a revolving balance must DESERVE to have their rates raised, even if they pay regularly? And it's no big deal to have your rates raised because you made a decision to purchase a cheaper item?
I didn't say that there was an interest rate crisis; I said that there's a revenue crisis in the banking industry. This is caused by the subprime fallout, and is creating incentives for banks and lending institutions to bilk customers for more money, even if the customers are playing by the rules and trying to build good credit.
Interest rates do make a difference, so I don't think it can be considered the least of anyone's concerns. Let's say someone has $5,000 of credit card debt, and are making payments of $200 a month at 12% interest. At that rate, they can pay down the debt in 29 months. If that interest rate goes up tp 25%, it will take 40 months to pay it off. That's an additional 11 months - $2200!
And it's not like every line of credit is opened by some greedy bastard who just wants some play money. You have to establish credit in order to qualify for a mortgage or a business loan. And speaking of business loans, it's becoming so difficult to secure these loans now - so small businesses are turning to lines of credit in order to get started.
Two other things to consider: a revolving balance is not always a bad thing, credit rating-wise. And closing an account does ding your credit a bit.
I'm going to have to read this book. As the dollar continues to weaken over the next few years, I think there will be many more books like this one - which will go into more discussion about the many other factors that led up to the economic collapse of the largest superpower.
America will rebuild, because we still have the best legal system in the world which makes it the best place in the world to start a business. But, it may take 10-20 years to recover like it did with the Great Depression.
I still don't get this whole crisis.
1) People who already have substantial debt accumulated on their credit cards can always just tell the credit card company that "Nope, I'm not going to agree to the new rules, please close my account and I will pay back everything I owe under the original terms and interest rate. These people should be closing their accounts anyway as clearly they have already spent more than they should have and have to spend less than what they earn to get out of it to start with. If they still need the credit cards then it's clearly a whole different issue and no matter what the interest rates are they are screwed.
2) I feel no remorse for people who have ran up credit card bills in hopes of taking out a home equity loan to cover it. That is just plain dumb and should be punished as such.
3) You also write about people who use their credit cards to get miles or rewards. These people better not have any balance on their cards. If they do they most definitely lose more on the interest than what they make back on the rewards. And if they do carry a balance they should stop spending money on this card and they immediately grouped with the people under section 1, hence no problem.
I have read at least a dozen different spins and articles on this credit card interest rate crisis. I don't see it as a problem, it's only a problem for people who carry heavy loads of debt and can't live without getting into more debt. And for these people the interest hike is the least of their worry.
Not to mention that every single one of them signed a binding contract with the credit card companies in the first place...
Taxes versus government services is a red herring. Everybody should read the book "Free Lunch." It's disturbing as hell and explains how hidden government "pork" giveaways to big business are the REAL cause of the sorry state of high taxes and government services. I guarantee it'll make your blood boil.
I don't mind paying taxes when I can see a return on my investment, but the taxpayer is definately getting jipped no matter what the location. I used to live in New Hampshire, which doesn't have a sales tax except 5.85% on "luxuries" like hotel rooms and restaurant meals. There's also NO income tax on earned income, only corporate and unearned income like capital gains. Property taxes are fairly high, but it stays in the town collecting the taxes. Crime is low in nearly all areas, most roads are meticulous, the schools don't have a lot of "frills" but most teach a solid basic education. The only towns which have had problems are towns that foolishly let problem businesses or housing tracts overstrain the town infrastructure with "pork" due to corrupt zoning boards and the other towns are loathe to bail them out. Because everybody knows a $2000 request to repaint Town Hall will be coming directly out of their property tax bills (and not some phantom "state" or "federal" money), town meetings are heavily attended and the person asking to spend money has to answer to the taxpayers. However, if the need is justified, the money gets voted approved. It's not perfect, but I think we've made a huge mistake getting away from simple cause-and-effect taxation. Sales taxes (on anything but food) are a generally fair way to tax because it taxes consumption, but NOT if the money is only getting siphoned away for some pork giveaway to a megacorporation.
Check your facts Julie. They have won the award for their region.
If any of your are skeptical I invite you to go to
www.payoffyourhomenow.org and fill out a free analysis. We will never take any of your private personal information, NO ssn's, NO credit reports etc. Just put in your income, mortgage, and other creditor info accurately and I guarantee I will generate a report that will blow away any DIY mortgage acceleration by 1-2 years, or more. Please be sure to include a real email address so I can email your report. I'm happy to provide any of the articles I've mentioned. I'm happy to do a Go To Meeting/Webinar presentation to all takers to show how the Money Merge Account is the fastest way to complete financial freedom from all of your debt. Or simply watch the how it works video at www.payoffyourhomenow.org With our new version 4 you don't even have to be a homeowner. The Money Merge Account works with HELOC's, PLOC's (Personal Lines Of Credit), Credit Cards, and now a system for those who have poor credit and no way to get any line of credit at all. The Money Merge Account is so much more than an online software system. It's a coaching and support system with live telephone coaches available to you 6 days a week 16 hours a day. Again I challenge each and every one of you to go to www.payoffyourhomenow.org for free analysis and accept my invitation to attend a Go To Meeting to find out how it works.
James Stubbs
I've been meaning to get my hands on a copy of this book, so I appreciate the review, Philip.
Worries about resource allocation have kept me up at night recently. It's only a matter of time before we all have to pare down our lifestyles significantly so that others can live with, oh, electricity and motorized transportation. That, or we all go back to mule-pulled carts as a means of commuting. :)