used 'properly' a credit card is a true gift, my BMO world elite gets me travel ins./ flight cancelation ins/ often an upgrade on rental cars . Sometime hotel discounts. My cashback VISA gets me cashback on groceries and fuel.
I use my CAA card and get a three cent discount, then pay VISA and get cashback , using the cards for work my monthly expenses are often in the 5-8k range , and I collect all the points . It helps
used 'properly' a credit card is a true gift, my BMO world elite gets me travel ins./ flight cancelation ins/ often an upgrade on rental cars . Sometime hotel discounts. My cashback VISA gets me cashback on groceries and fuel.
I use my CAA card and get a three cent discount, then pay VISA and get cashback , using the cards for work my monthly expenses are often in the 5-8k range , and I collect all the points . It helps
If you pay off your card in the grace period it can make you money.
Its the 30% of card users that get raped and they are the ones who can less afford it.
The fact I pay with cash on small items allows me instant financial status and gives me the opportunity to think "can I really afford this luxury".
A company I worked part time for has a strategy of making up for lower intial sales do to the downturn in the economy by making a great sounding offer if customers use our card knowing that 30% of sales will return and extra 20 plus % in interest charges.
They give bonuses to encourage the promotion of the credit card to customers.
This whole topic makes me sound like a "Bleeding Heart Liberal Commy" and that upsets me even more!
And YES I do use a credit card for some of my purchases to get the cash back.
And don't let me get started on the Air Mile scam.
My ex employer used to give us a Christmas Bonus Check.
When his son took over running the company we where then issued Esso gas cards instead.
Esso gives a 2% discount on the card price for corporate users.
I am sure the cards where purchased with a credit card that gave rewards.
I also expect a certain portion of the gas receipts where wrote off as business expense of the company.
Of course the employees had to pay tax on the extra "income".
To add insult to injury Esso was always the most expensive gas in town.
As they say it is easier to make money if you have money.
There was no good times in 1974 , the US energy crisis ruined cars , the Brits were still trying to sell 650 twins and platform shoes were a thing . 1974 sucked . So did ‘75 .
My Dad never had a charge card , consumer loan or mortgage . Yet he bought cars and houses . It was a lifestyle thing for him , he knew how much he had and when. I couldn’t do it like that , and while Dad had a great life and missed nothing my net worth exceeded his by the time I was mid 30s . I’ll quite happily use other people’s money where it makes sense.
A common thread of this post is that "Loyalty" cards do not attract loyalty.
Many users use different cards based on rate of rewards.
AirMiles used to be king but it went bankrupt because of increased compatition.
The rate of rewards has increased but so has interest rates charged on cards.
So use those "Rewards" before they go away!
We're all aware that the cost of "rewards" on pretty much any card is covered by the store owner and not the banks or amex/visa/mc. Cards with higher rewards charge a higher user fee to the store owner. With Amex's higher rewards the user fee is much higher and hence why fewer stores accept it. That said if they'll accept my card I use it (unless cash and no receipt equals savings.....)
I think many people get themselves raped when it comes to credit card use and interest.
Many people simple blame "those greedy banks" when they over spend and/or are delinquent with payments.
No one forces anyone to take on a credit card, but we all like the idea of "free money" except it is far from free...
My Dad never had a charge card , consumer loan or mortgage . Yet he bought cars and houses . It was a lifestyle thing for him , he knew how much he had and when. I couldn’t do it like that , and while Dad had a great life and missed nothing my net worth exceeded his by the time I was mid 30s . I’ll quite happily use other people’s money where it makes sense.
A guy I worked with commented that his dad paid cash for everything including the family cottage. The problem was that by the time his dad saved up the money for the cottage the son was in his twenties and didn't want to spend weekends at the cottage. He wanted to hang with his buddies in town and do car stuff.
I had quit one job and nothing in sight for the next. The following morning we were on a plane to Florida. My daughter was at the right age for Disney and I had promised her a swim in salt water. Best bad investment I ever made.
So I had heard that credit card balances on many cards ( MC, visa being two for sure ) die with the card holder . Having dinner with the widow of a friend , Big Bob her husband ( who was a pretty successful guy) when diagnosed with brain cancer had rung up over 270k in credit card debt, on purpose , and it all washed out settling the estate. So there is that…..
So I had heard that credit card balances on many cards ( MC, visa being two for sure ) die with the card holder . Having dinner with the widow of a friend , Big Bob her husband ( who was a pretty successful guy) when diagnosed with brain cancer had rung up over 270k in credit card debt, on purpose , and it all washed out settling the estate. So there is that…..
My understanding is this is partially correct. The balance is a claim against the estate, if the estate has no assets, the balance is uncollectable and goes away. If the estate has assets, my understanding is it has to settle liabilities prior to distribution to heirs.
I think many people get themselves raped when it comes to credit card use and interest.
Many people simple blame "those greedy banks" when they over spend and/or are delinquent with payments.
No one forces anyone to take on a credit card, but we all like the idea of "free money" except it is far from free...
Best way it was simply explained to me is ‘remember…if you miss a payment the interest doesn’t accrue from due date of payment. It accrues from date of purchase.’
That opened my eyes.
Same as interest accrues from day of withdrawal, not from credit card invoice date.
Haven't carried a balance since. Maybe paid $150-200 in interest on credit cards my whole life.
My understanding is this is partially correct. The balance is a claim against the estate, if the estate has no assets, the balance is uncollectable and goes away. If the estate has assets, my understanding is it has to settle liabilities prior to distribution to heirs.
A friends mother died, the estate didn't get settled and his sister had control. She rang up over a half million in debts using the estate and her credit cards. I get the impression that most of her debts were life insured. If cancer didn't get her the estate would have been largely wiped out.
My HELOC is life insured and the rate gets higher as I age.
My understanding is this is partially correct. The balance is a claim against the estate, if the estate has no assets, the balance is uncollectable and goes away. If the estate has assets, my understanding is it has to settle liabilities prior to distribution to heirs.
I hope somebody from a bank chimes in , this is the second time I have heard about this , Bob had several million in assets , the CCs apparently went away .
I hope somebody from a bank chimes in , this is the second time I have heard about this , Bob had several million in assets , the CCs apparently went away .
According to these insolvency trustees (I have no affiliation), estate covers debt before inheritance. Now, if he was prudent in his structuring, the estate may not have had any assets (house jointly with wife, investments in trusts etc).
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