Improvised plumming repairs may seem like a gazelle thing…

…but they’re not. Just trust me on this one.

Drawing Blood

So the credit card companies have been scrambling to jack-up their customer’s interest rates and lower their available credit in anticipation of February’s changes passed by congress in August.  Since the summer we have seen a spiral of cards lowering the available balance which screws the card-holder’s FICO score by lowering your percentage of available credit to credit used.  Then your other cards raise your rates based on your new lower FICO  – or just because they want to, which increases your minimum payments and lengthens the time it will take you to pay-off balances.  All this without you having been so much as a day late or a dollar short.

This weekend we got a letter from Chase announcing that they were going to move our interest rate from 12.24% to 19.24% (wowzers).   Their reason?  They were kind enough to provide it in black and white: “The principal fact we considered in amending your account is maintaining profitability on your account”.  I guess getting  a 12.24% return was just not profitable enough!

Of course the banks claim that they absolutely have to do this because of the amount of charge-offs they are incurring in this economy.   I have no doubt they have ran the numbers and they have figured out how to maximize the amount of squeeze they can administer before the interest rate changes contribute enough to charge-offs  to offset profitability.

Cheetahs: What the heck?

I have seen no less than six articles today extolling the virtues of using your credit card for purchases or warning against the treacherous waters of debit cards…. ?

Apparently since you actually have to have cash in your bank account to cover your debit charges (and someone might steal your card) your debit card is risky.  Now, your debit card can kill you – your bank can charge whatever they like, literally, if you overdraw your account.  If they want to charge you $100 for going over on a $3.75 coffee house debit transaction they can legally do it.   So you absolutely have to know what you are spending and what anyone else with access to your account is also spending, but as long as you don’t overdraw your debit card isn’t innately more risky to shop with.

Mary Pilon at the Wall Street Journal advises us: “You’ve figured out your holiday gift list. The next question: paper or plastic? Generally, plastic has the edge.”  Is she mad? Why does she recommend  a “Charge it” Christmas? She claims that CCs offer an additional paper trail in case you need to make a return, added warranties, repair or even installation services, that it is easier to return something purchased on plastic,  that you get an added discount for opening a new store credit account,  or even credit-reporting services.  She then switches to talking about the various gift-card and layaway and talking about various alternatives to the mall.

When I worked retail I NEVER saw someone bring in a credit card statement for a receipt…. never.   A credit card statement is not a store receipt, if you find a really nice salesperson they might be willing to help you out and look up your transaction – but most stores have clamped down on their return policies.  Do not count on your CC statement being honored as a receipt.  Most CC statements to NOT itemize the purchase, they only show the store and the amount charged, so your CC statement does NOT show that you purchased a particular item at that store, only that you purchased something there. All that together and I have never had any problem returning something paid for with cash.  There is no store that I know of that will give you anymore hassle for a return with receipt for an item bought with cash than one paid for with a CC.

Now I know that Visa and Master Card offer extended warranties on items that have warranties as long as you register the product and jump through any hoops the manufacture has for you, but does this advantage actually offset the risk of using the credit card?  I have never had a card that covered installation for anything either.

Keep in mind that credit cards aren’t in the business to lose money.  If you want to look at your credit report you have one free-report per year and a free report whenever you are deigned credit and if you want better tracking there are better options than signing up for a credit card to get credit monitoring.   If you are getting 20% off on a purchase for opening a credit account then you can be sure that this card is not going to be your friend.

New regulations are also making gift cards more problematic than they have ever been.

Now I am just cynical enough to think that the CC companies are absolutely panicking this holiday season.  Expected low  sales coupled with customer dissatisfaction (and in many cases outright rage) over their recent “bend over and take it hard” changes to their customer’s credit card agreements make this holiday season look a little less jolly to the CC companies.   I am sure they would LOVE to scare everyone away from a cash only Christmas where people use only cash or debit cards for their purchase.

The Card Game

Frontline aired their new documentary “The Card Game” last night.  You can view it here.

 

Cheetahs: Keeping current on CCs to pay for essentials

while the rent and mortgage slip?

This article puts forth the idea that people are paying their credit cards so that they can continue to use them because the bank card will cut them off faster than the  bank or land lord can foreclose or evict.

Cheetah Alert: The Salvation Army will take your card

I don’t mean to imply that they are doing anything nefarious with your credit or debit card, but they will allow you to donate via their new “electronic kettles” (news story).     Giving to charity is a great thing, but putting it on your credit card is not.

Asking for a better deal is a Gazelle Thing

I just got off the phone with our Internet provider.  We had a discounted rate with them and that ended this month.   So I called and asked what they could do for me and got my “teaser-rate” extended another six months.   Don’t be afraid to pick up the phone and ask.

It helps if you can go online an grab the “teaser-rates” that the competition is touting  — many times your existing company will match them or get close just to keep you as a customer,  and you can always switch if they won’t.  (one word of caution, be careful about committing to a contract rate unless you are sure you will like the company and read the fine print)

Free online banking is a Gazelle Thing

If your bank doesn’t offer Free online banking and bill-pay switch banks.

Understanding Your Financial Situation is a Gazelle Thing

What do you owe?

I’ll admit it.  There have been times when I had very little idea of what we owed.  One thing that has been very helpful in being motivated to get out of debt was to look at home much we owe — I made a spreadsheet with every debt, its balance, interest rate and minimum payment.   Seeing it all in one spot was eye opening to say the least.

Negotiating with the hospital is a gazelle thing.

I had a medical emergency earlier this fall.   The insurance paid their share and I got the hospital bill today.  There was no way we could pay it out right so I took out the handy budget spreadsheet and worked out what I could pay them and when I could probably pay them more.  After that I called and talked with their business office and offered them my plan.  “This is what I can do.”  And they took it.  No arguing or complaining even.  I was completely prepared to stand firm and stick to my: “this is all I can afford, I will pay this much until May then I will have another bill paid off and I will be able to pay you more” spiel.  But I didn’t even have to go there.