Average Credit Card Debt is $9,360 !!

[Kommander_KornFlakes]

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Did anyone hear the radio this morning? The average credit card debt per person (who has it) is a whopping $9,360 dollars, and here I was thinking I was in the top 1% of heavy debtors because I owe $,4,800 :rolleyes:

The radio also said that a whopping $2 trillion dollars in goods & services was bought with credit cards last year.... that's insane :eek:

[zoober]

I pay my credit card off monthly. So $0 debt there. But I owe 23k in student loans :evil:

[thelost]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

[Piccolo]

This year I will have $0.00 Debt -- Courtosy of RFD I found out about the CitiBank 0% introductory offer & transfered the last of my credit card debt to that. I will have it paid off by the time the intro offer is up in Sept. In the meantime I am only paying the minimum on Citi and putting the rest in an ING interest earning account. So, but Sept I can pay off the balance at once with a little bit of interest earned. Not a huge amount, but better then nothing :)

I would have thought that the average credit card debt was more. Although, $9360 is a lot.

[thefleet]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

+1 :D

[gordholio]

I don't have any credit cards. I used to, but not now. Pay everything with cash or bank card. ;)

[dlander]

Average credit card debt is not 9,360.
They do weird things to bring it up that high.

For example, 50% of population (the people who always pay off the balance) are thrown out of the calculation.

[BadDrafter]

0% debt here...

I like cash back and other features that credit cards get you. They are far more flexible then cash or debit.

Credit cards are just a payment method, not a replacement for money.

People just don't get it.

I'm of the old school of if you can't buy it outright, you just save up until you can actually buy it.

Very rarely does instant gratificaiton make up for 20% compuoud interest.

Since there are better ways to finance education or a house or car, I deliberately leave them out.

This is a movie all credit card abusers should watch.

http://www.indebtwetrust.org/trailer.php

[Jucius Maximus]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

Yeah, I have a pile of credit card debt, but most of that is a 0% offer from Citi.

[Steve_YXE]

I'm way above average. I have $37600 in credit card debt, thanks to 0% from Citi and MBNA. :lol:

I have not paid credit card interest in probably 10 years...I feel sorry for people making minimum payments at 20 something % interest

[Kommander_KornFlakes]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

I said credit card, not credit or lines of credit.

Show me a credit card that charges 0% interests and I will show you the Loch Ness Monster.

[BadDrafter]

http://www.redflagdeals.com/forums/showthread.php?t=411582

Produce the monster.

Anyways I doubt it's skewed that much. Not many people know about such cards. Not everybody is as astute financially as a RFD reader.

[elty]

I think the average only includes people who has a balance.

[CSK'sMom]

I actually think that number is too low. The vast majority of the people we know whom we've had this conversation with are carrying far more than $10k in credit card debt. We know folks that rack their CC's to the limit (25k'ish)and consolidate them onto their mortgage every 3-5 years and immediately start the process again. :confused:

[gman]

I said credit card, not credit or lines of credit.

Show me a credit card that charges 0% interests and I will show you the Loch Ness Monster.

Do you know 0% interest balance transfer for Citibank introductory offer? Did you check out hot deals?

I have just taken out $14K 0% interest for one year from my new Citibank credit card.

Where is Loch Ness Monster?

[nobody1234]

We know folks that rack their CC's to the limit (25k'ish)and consolidate them onto their mortgage every 3-5 years and immediately start the process again. :confused:

Why so sad, consumer spending on frivolous things is the backbone of our economy. Just buy some financial stocks and profit off those who make bad decisions ;)

[CSK'sMom]

How true Nobody! I did hear on the news tonight that the initial offering of Visa stock is expected to generate 19 Billion. :)

[pitz]

How true Nobody! I did hear on the news tonight that the initial offering of Visa stock is expected to generate 19 Billion. :)

Yeah the Canadian banks should be able to juice their earnings somewhat when they bring the results of that transaction onto their income statement. Should help to cover up some of their foreign CDO losses and exposure to bad counterparties.

I wonder if the member banks planned the VISA IPO to correspond with impending bank failures and the need to raise capital, or not.

[gei]

I don't have any credit cards. I used to, but not now. Pay everything with cash or bank card. ;)

Really? That's pretty stupid.

First of all credit cards are pretty much essential. Can't do many things without one (ie order online, get a hotel room, rent a car, etc etc).

Personally I put every single thing I possibly can on credit card, including paying all the bills I can. And thanks to my BMO gold westjet card I get at least a free flight every year because of this.

A few months ago when I bought a car and needed to put down a deposit, I put down as much as they would let me on CC... that alone almost got me a free flight.

That being said, I've never actually carried a CC balance in my life. So used correctly, they can be a great tool.

[Kommander_KornFlakes]

Do you know 0% interest balance transfer for Citibank introductory offer? Did you check out hot deals?

I have just taken out $14K 0% interest for one year from my new Citibank credit card.

Where is Loch Ness Monster?

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?

BTW I know this young woman (26) who owns a whopping $22,000 to her credit card, she makes about $12 an hour. She racked it up buying $9,000 in furniture, expensive clothing and other idiotic ways. I think her minimum payment alone is about $1,200 a month or something like that.

[brunes]

I pay my credit card off monthly. So $0 debt there. But I owe 23k in student loans :evil:

On top of that the results may be skewed if they are looking at actual balences at any point in time vs. actual revolving debit.

IE, if they asked me how much was on my CCs during a few months last year, I would have had to say around 5-6K. At the end of each month though it was $0.

[e909]

Really? That's pretty stupid.

First of all credit cards are pretty much essential. Can't do many things without one (ie order online, get a hotel room, rent a car, etc etc).

Personally I put every single thing I possibly can on credit card, including paying all the bills I can. And thanks to my BMO gold westjet card I get at least a free flight every year because of this.

A few months ago when I bought a car and needed to put down a deposit, I put down as much as they would let me on CC... that alone almost got me a free flight.

That being said, I've never actually carried a CC balance in my life. So used correctly, they can be a great tool.
For what its worth, you can get a hotel room and rent a car with cash.

[gman]

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?

I don't know what kind of credit score you need to get that. I just applied that casually. If you follow the link of the other poster posted, you should see a lot of people get that. I am not special. BTW, the first time I tried about 1 year ago, they rejected me because I already have another Citibank credit card.

I don't know what they can make money off me at all. The chance is they won't because I do not and will not use that credit card at all. The card is in my safe and it will stay there forever. Do I really care about if they can make money off me?


BTW I know this young woman (26) who owns a whopping $22,000 to her credit card, she makes about $12 an hour. She racked it up buying $9,000 in furniture, expensive clothing and other idiotic ways. I think her minimum payment alone is about $1,200 a month or something like that.

When you get 0% interest free from your credit card, you don't have to spend it. Yes, as you said, she was dumb.

[konfusion666]

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?

The 0% citibank/mbna offer threads in Hot Deals are some of the most popular threads around, so clearly it isn't that difficult to get one of those cards. And in those threads you'll often see university students getting in on the deals.


BTW I know this young woman (26) who owns a whopping $22,000 to her credit card, she makes about $12 an hour. She racked it up buying $9,000 in furniture, expensive clothing and other idiotic ways. I think her minimum payment alone is about $1,200 a month or something like that

What credit card has a 6% minimum payment?

[boyoflondon]

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?

BTW I know this young woman (26) who owns a whopping $22,000 to her credit card, she makes about $12 an hour. She racked it up buying $9,000 in furniture, expensive clothing and other idiotic ways. I think her minimum payment alone is about $1,200 a month or something like that.

Dude!! Have you been living under a rock or something?

I am a Univ student and have a job that pays me cash; so technically, I have no income. I have 3 platinum cards, 1 CT, FS, HBC, and MACY's.

MBNA platinum - $5,200
Capital One platinum - $12,000
RBC Platinum - $5,000
Crappy Tire MC - $6,700
Future Shop - $7,000
HBC - $500
Macy's - $500

For a grand total of $36,900 of available credit!! Now, I just used this as an example; not as a way of 'showing off'. As a matter of fact, I just canceled some cards yesterday, and reduced the others, putting my credit available between all the cards down to $14,200

The whole point of the 0% introductory rate is to get you hooked, make you max out your card, and then when you cant pay it off by the due date when the interest kicks in, they will "rape you". CC companies don't give a damn! They will issue a card to anyone (provided you have a half decent credit), as it will just put more money in their pocket in the end.

[elty]

The whole point of the 0% introductory rate is to get you hooked, make you max out your card, and then when you cant pay it off by the due date when the interest kicks in, they will "rape you". CC companies don't give a damn! They will issue a card to anyone (provided you have a half decent credit), as it will just put more money in their pocket in the end.

Except that people know exactly how to avoid those excessive charge, they just can't change their habit of overspending. If you have no self discipline of any kind then yes, credit card is going to rape you apart.

[boyoflondon]

Except that people know exactly how to avoid those excessive charge, they just can't change their habit of overspending. If you have no self discipline of any kind then yes, credit card is going to rape you apart.


That is what I said .. Those that CANT pay it off, end up getting raped.
For most, it's all about management and self control.

[UrbanPoet]

I always try to keep my CC debt low...
I always pay on time, except for one period of my life where i completely forgot about it. Otherwise... i have good credit.
I killed off all my credit cards except for a MBNA m/c that im using for 1.99% intro rate to pay off my student loan. I also keep my first credit card... which is a RBC student classic visa, which has just recently been upgraded to a Classic Rewards.

[7jaii]

Where is Loch Ness Monster?

I think KKornflakes is saying, no business issues a regular 0% credit card. There are introductory rates, credit union rates or some stipulation - I have not been offered a permanent 0% from any bank.

[movieman]

Do I really care about if they can make money off me?

Maybe in a couple of years: with the credit crunch growing in the UK, some card companies have been cancelling cards of those they're unlikely to make money from (e.g. those who spend relatively small amounts and pay them off in full every month, along with those who are the worst credit risks). With a limited amount of credit available, they want it going to the most profitable users.

[gman]

I think KKornflakes is saying, no business issues a regular 0% credit card. There are introductory rates, credit union rates or some stipulation - I have not been offered a permanent 0% from any bank.

I don't think so. He said:

I said credit card, not credit or lines of credit.

Show me a credit card that charges 0% interests and I will show you the Loch Ness Monster.

I don't know any credit card, line of credit, loan or anything that have permanent 0% from the bank. 'To the bank', yes. 'From the bank', no.

[gman]

Maybe in a couple of years: with the credit crunch growing in the UK, some card companies have been cancelling cards of those they're unlikely to make money from (e.g. those who spend relatively small amounts and pay them off in full every month, along with those who are the worst credit risks). With a limited amount of credit available, they want it going to the most profitable users.

I have no problem if they cancel that card from me after 1 year because I am not going to use it at all and the 0% interest promotion ends after 1 year. That card basically has 0 feature. ;)

[konfusion666]

Maybe in a couple of years: with the credit crunch growing in the UK, some card companies have been cancelling cards of those they're unlikely to make money from (e.g. those who spend relatively small amounts and pay them off in full every month, along with those who are the worst credit risks). With a limited amount of credit available, they want it going to the most profitable users.

So what you're saying is that those with above-average credit ratings have been having their CC's cancelled?

[elty]

So what you're saying is that those with above-average credit ratings have been having their CC's cancelled?

http://news.bbc.co.uk/1/hi/uk/7236171.stm


Banks may be taking cards from reliable customers and giving them to riskier ones instead in order to boost their profits, a senior MP has suggested.

The chairman of the treasury select committee, John McFall, said companies might be withdrawing cards from people who pay their bills on time.

Instead, he said, they were being given to people who pay interest because they could not clear their debts.

UK payments association Apacs denied banks had brought in any such policies.


Speculation only. A large bank cancel many CC because they are deemed to be "high risk". However some people (who has no debt or mortgage, and pay bills in full) also got theirs canceled and they aren't very happy about that.

[Kommander_KornFlakes]

Dude!! Have you been living under a rock or something?

I am a Univ student and have a job that pays me cash; so technically, I have no income. I have 3 platinum cards, 1 CT, FS, HBC, and MACY's.

MBNA platinum - $5,200
Capital One platinum - $12,000
RBC Platinum - $5,000
Crappy Tire MC - $6,700
Future Shop - $7,000
HBC - $500
Macy's - $500

For a grand total of $36,900 of available credit!!


Do you expect me to believe that you got all those credit cards without proof of employment or proof of income? Please :rolleyes:

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[gman]

Do you expect me to believe that you got all those credit cards without proof of employment or proof of income? Please :rolleyes:

-

I don't see why it can't be done especially he did not mention how much money he has in his bank account.

[bubble.tea]

I don't have any credit cards. I used to, but not now. Pay everything with cash or bank card. ;)

You do realize, you're excluding yourself from earning some very lucrative rewards by not using any CC?

I honestly can't imagine anybody who WOULDN'T want to use CCs...exclusively.

[gman]

You do realize, you're excluding yourself from earning some very lucrative rewards by not using any CC?

I honestly can't imagine anybody who WOULDN'T want to use CCs...exclusively.

I agree. At least for me, using credit card is to save money instead of wasting money.

[EchoAngel911]

got 0 debt,

just resist credit cards and pay cash

[halflife150]

I don't know what they can make money off me at all. The chance is they won't because I do not and will not use that credit card at all.

If you did the mbna 0% BT, didn't they charge you 1% of the balance transferred? In which case they did make money off of you. May not be a lot but they still made money. Banks always win.

have a job that pays me cash; so technically, I have no income.

That statement doesn't make a whole lot of sense. Income is income regardless the form it is paid in for services rendered. I would like to see that argument go up against the CRA.

[urban1]

A credit card has more functions than being a source of debt.

-Its a method of payment. Just like cash or debit. Except it has added benefits. Rewards points is the obvious one. Extended warranties. Fraud protection.

It also lets you track your spending and have a good record of purchases.

It also lets you not have to pay for your purchases for up to 30 to 45 days. Depending on your billing cycle and your grace period, you could have your cash earning interest before you put it on your credit card to pay for your purchase. This can be a small benefit but for RFDers who like their pennies, this can add up. And an large purchases, there can be a definite advantage.

You can use credit cards extensively without ever using them as a source of debt.


got 0 debt,

just resist credit cards and pay cash

[Scribblez]

You do realize, you're excluding yourself from earning some very lucrative rewards by not using any CC?

I honestly can't imagine anybody who WOULDN'T want to use CCs...exclusively.

+1

I use my CC a lot because of cashback rewards. When I do use my card I end up paying it online in the next few days anyways and I never have to pay interest. So I don't need to carry large sums of cash on me, and once a year I get a small sum of money rewarded back to me. It's also safer than using a debit card.

There's cards with different rewards for people with different tastes, so take your pick.

[Piccolo]

You do realize, you're excluding yourself from earning some very lucrative rewards by not using any CC?

I honestly can't imagine anybody who WOULDN'T want to use CCs...exclusively.
I also agree. Before I had a minimum balance in my bank I would use a credit card in order to keep the bank fees low - unlimited transactions on a credit card then pay off the balance when its due. You have to budget and keep track of your expenses and be disciplined. Don't think it's "free money". Also, paying by credit card offers protection that cash/debit transactions do not.

[gman]

If you did the mbna 0% BT, didn't they charge you 1% of the balance transferred? In which case they did make money off of you. May not be a lot but they still made money. Banks always win.
That is why I don't use MBNA 0% BT. Banks win most of the time but not every time. 1% of $14K is $140. I consider that as a lot.

That statement doesn't make a whole lot of sense. Income is income regardless the form it is paid in for services rendered. I would like to see that argument go up against the CRA.
He said technically, no income. Since he did not report the income to the government, the bank would not consider he has income. If CRA finds out, they will consider he has income but the bank would still consider he has no income. On the other hand, if CRA can catch him and many others, we will pay less tax.

[recordman]

You think they can borrow money at < 1%? If they borrow at say 2%, and lend to you at 1%, they are losing 1%. I borrowed $10k from MNBA with that 1% fee, but I'm getting 4+% by re-investing the money. They are not making any money off me. The 1% they are getting back from me just means they are losing 1% less money.

Yes, banks always win in general, but not from people like me.

If you did the mbna 0% BT, didn't they charge you 1% of the balance transferred? In which case they did make money off of you. May not be a lot but they still made money. Banks always win.

[Jucius Maximus]

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?

Lots of people on this board have gotten the Citi 0% into card. I have gotten it and I am not any majorly wealthy person. I have a mortgage and a decent job. My oldest credit is from 2001. I'm not rich or anything.

As to how they make money off it:

1. They count on people not being able to pay off their principle during the 0% during the introductory period.

2. They try to scam you by immediately sending convenience cheques that are NOT for the introductory rate and hoping that some people use them thinking they will get the intro rate. Later on you do get the 0% cheques.

3. If you transfer a balance and then make a normal purchase on the citi card, you have to pay off the entire 0% balance before you can pay down the interest-bearing amount. Most people don't know this is in the fine print, so that little interest-bearing amount just sits there and earns interest while you try to pay off this massive balance transfer.

By the way, Kommander, you come across as a major know-it-all in many of your posts, but you're wrong 90% of the time. And then you go through histrionics continuing to try to prove that you're right and end up making an even bigger fool of yourself. I think you will find that you become much wiser and look less stupid if you use your ears more often than your mouth.

[najibs]

3. If you transfer a balance and then make a normal purchase, you have to pay off the entire 0% balance before you can pay down the interest-bearing amount. Most people don't know this is in the fine print, so that little interest-bearing amount just sits there and earns interest while you try to pay off this massive balance transfer.


wait a minute...so the MBNA SPG card that I have and did a $4600 BT to, at 3.99%, if I charge $400 a month to it of regular purchases, and then pay $400 at the end of every billing cycle, that means im only paying off $400 worth of the BT and that $400 that was charged during the month is actually accruing 19.99% interest???

[bubble.tea]

wait a minute...so the MBNA SPG card that I have and did a $4600 BT to, at 3.99%, if I charge $400 a month to it of regular purchases, and then pay $400 at the end of every billing cycle, that means im only paying off $400 worth of the BT and that $400 that was charged during the month is actually accruing 19.99% interest???

PLEEEEEEEEEEEEEASE...dont' tell me you didn't know this.


AIIII-YAAAAAAAAAAAAAAAAAAAAAAAAAAA.


n000b!!!!

http://img.photobucket.com/albums/v283/petawawa/smilies/picard-headesk.jpg

[najibs]

PLEEEEEEEEEEEEEASE...dont' tell me you didn't know this.


AIIII-YAAAAAAAAAAAAAAAAAAAAAAAAAAA.


n000b!!!!

http://img.photobucket.com/albums/v283/petawawa/smilies/picard-headesk.jpg

Well, maybe for Citi, but I just checked my statement and my purchases have not accrued interest, according to it, and only the balance transfer has.

[bubble.tea]

Well, maybe for Citi, but I just checked my statement and my purchases have not accrued interest, according to it, and only the balance transfer has.

this isn't a citi thing...but an industry standard for calculating paying off of a balance when special promo interest rates are live.

You ALWAYS are paying off the oldest balance on a CC.

So you have 1000 at 1%., and you buy $100 at the end of the month.

CC's don't count them as TWO SEPARATE Balances., they count $1100, and if you pay $100., it actually pays $100 of the $1000, first, then you have $900 at 1%, and $100 at full percent...or it's just ($900+$100) at full percent...not sure...each BT I did was on a CC that I immediately subsequent to processing it CUT UP, AND SHRED., so I never used it thereafter...so I don't know what actually happens...I've READ of horror stories though LOLz...:eek:.

[gman]

You think they can borrow money at < 1%? If they borrow at say 2%, and lend to you at 1%, they are losing 1%. I borrowed $10k from MNBA with that 1% fee, but I'm getting 4+% by re-investing the money. They are not making any money off me. The 1% they are getting back from me just means they are losing 1% less money.

Yes, banks always win in general, but not from people like me.

It all depends on how long that low interest rate last. Sometime, MNBA only gives you low interest rate for a few months. The 1% transaction is immediate costs. Says, the period is 3 month and the interest rate is 0%. That 1% mean will be translated as a 4% annual rate.

this isn't a citi thing...but an industry standard for calculating paying off of a balance when special promo interest rates are live.

You ALWAYS are paying off the oldest balance on a CC.

So you have 1000 at 1%., and you buy $100 at the end of the month.

CC's don't count them as TWO SEPARATE Balances., they count $1100, and if you pay $100., it actually pays $100 of the $1000, first, then you have $900 at 1%, and $100 at full percent...or it's just ($900+$100) at full percent...not sure...each BT I did was on a CC that I immediately subsequent to processing it CUT UP, AND SHRED., so I never used it thereafter...so I don't know what actually happens...I've READ of horror stories though LOLz...:eek:.

Actually, most of them is to pay off the amount that associates with the lowest interest rate and not necessary the oldest.

[gman]

Well, maybe for Citi, but I just checked my statement and my purchases have not accrued interest, according to it, and only the balance transfer has.

When did you make the purchase? Is that a new purchase for this month? Or, was it old for last month?

[Pavel]

I don't have any credit cards. I used to, but not now. Pay everything with cash or bank card. ;)

That's not good for your credit score.

[majesus]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

I was thinking, great I don't have any Credit Card debit, then you mentioned a very good point... Wait a minute, I got a $15,000 dollar debit. lol

Completely forgot about the promotional balance on my MBNA.

[thefleet]

Actually, most of them is to pay off the amount that associates with the lowest interest rate and not necessary the oldest.

+1. People need to learn to read the fine print before jumping onto a "0%" credit card.

[thefleet]

Well, maybe for Citi, but I just checked my statement and my purchases have not accrued interest, according to it, and only the balance transfer has.

MBNA does the same thing btw. The purchases didn't accrue interest because of the grace period.

[Kommander_KornFlakes]

got 0 debt,

just resist credit cards and pay cash

What if you have an emergency and your mother/father dies in Winnipeg and you need $5,000 fast and you only have $1,500 in your bank account?

What then? Are you going to go knocking on your friends' doors begging to let you borrow $5,000? Good luck at that. CC's are a great thing, not only for purchasing but they can be your best friend who will never say "no" when you ask them to lend you money.

There's a guy here who says he can rent cars using just cash..... yeah okay, so I'm going to be walking with $1,000 cash in my pockets to leave as surety and drive without the full-cover insurance CC's provided for free on car rentals?

[urban1]

Since this thread has gone offtopic, Ill keep going in that direction:

A previous poster made a good point above. When you dont need credit, its really easy to get. When things are good, and you have a good job, are able to pay the bills and save money each month, the banks will throw credit cards and LOCs at you like made. Just wait until you sick, lose your job, and cant pay the bills. Having credit cards and LOCs might save your butt from being homeless. A cash advance from your CC might help pay the rent if you need a month or two to get healthy and get back to work and have a paycheck coming in again.

[metro]

I said credit card, not credit or lines of credit.

Show me a credit card that charges 0% interests and I will show you the Loch Ness Monster.

your one of the biggest idiots on rfd

owned

[BadDrafter]

Just wait until you sick, lose your job, and cant pay the bills. Having credit cards and LOCs might save your butt from being homeless. A cash advance from your CC might help pay the rent if you need a month or two to get healthy and get back to work and have a paycheck coming in again.

The best time to get disability insurance is when you are healthy.

[najibs]

MBNA does the same thing btw. The purchases didn't accrue interest because of the grace period.

So next billing cycle, that $400 that I put on the card last month and paid off, will be subject to 19.99% interest, because of the balance transfers I have? I'm confused now.

[thelefteyeguy]

i love credit cards...

not only am i getting a minute discount on gas...i will be getting my annual $360 sears giftcards very very soon :cheesygri

[AllWheelDrift]

So next billing cycle, that $400 that I put on the card last month and paid off, will be subject to 19.99% interest, because of the balance transfers I have? I'm confused now.
Yup, you just found the catch to the 0% balance transfers. You're not supposed to use the card once you've done the balance transfer.

[najibs]

Yup, you just found the catch to the 0% balance transfers. You're not supposed to use the card once you've done the balance transfer.

Fack. Oh well, I'll have to stick to my Amex, then, until the BT period is over, after which I'll transfer it back to my LOC at 7.3%.

[bubble.tea]

It all depends on how long that low interest rate last. Sometime, MNBA only gives you low interest rate for a few months. The 1% transaction is immediate costs. Says, the period is 3 month and the interest rate is 0%. That 1% mean will be translated as a 4% annual rate.



Actually, most of them is to pay off the amount that associates with the lowest interest rate and not necessary the oldest.

ahhh...thank you for clarifying that (sounds worse actually :lol: ). Either way., point is...with a low interest BT CC...DO NOT USE IT thereafter till it is completely paid off...correct?

[thefleet]

ahhh...thank you for clarifying that (sounds worse actually :lol: ). Either way., point is...with a low interest BT CC...DO NOT USE IT thereafter till it is completely paid off...correct?

Only use it for BT.

[Jucius Maximus]

wait a minute...so the MBNA SPG card that I have and did a $4600 BT to, at 3.99%, if I charge $400 a month to it of regular purchases, and then pay $400 at the end of every billing cycle, that means im only paying off $400 worth of the BT and that $400 that was charged during the month is actually accruing 19.99% interest???

Yes. :evil: Some kindly RBC rep told me about that.

[Kommander_KornFlakes]

The best time to get disability insurance is when you are healthy.

Why, so you can work for cash at the same time? :twisted:

[elty]

By the way, Kommander, you come across as a major know-it-all in many of your posts, but you're wrong 90% of the time. And then you go through histrionics continuing to try to prove that you're right and end up making an even bigger fool of yourself. I think you will find that you become much wiser and look less stupid if you use your ears more often than your mouth.

Have to agree.

[nuberific]

Why, so you can work for cash at the same time? :twisted:

Disability insurance, not benefits. U_U.

[BadDrafter]

Why, so you can work for cash at the same time? :twisted:

http://img86.imageshack.us/img86/8145/picardheadeskti9.jpg

[bubble.tea]

http://img.photobucket.com/albums/v283/petawawa/smilies/picard-headesk.jpg

Maybe it's just me...but when I like a photo..I tend to host it myself. Badrafter..nice JACking my bandwidth. ;).

[BadDrafter]

Maybe it's just me...but when I like a photo..I tend to host it myself. Badrafter..nice JACking my bandwidth. ;).

I thought photo bucket was free.

[bubble.tea]

I thought photo bucket was free.

yeah it's free...I was just playin'. still they do monitor bandwidth, and if you go over it you lose status, and/or they delete the file ;).

[najibs]

yeah it's free...I was just playin'. still they do monitor bandwidth, and if you go over it you lose status, and/or they delete the file ;).

great, ill be sure to use up your bandwidth then ;)

[gman]

ahhh...thank you for clarifying that (sounds worse actually :lol: ). Either way., point is...with a low interest BT CC...DO NOT USE IT thereafter till it is completely paid off...correct?

It is worse.

Whenever you want to take advantage of low interest promotion of credit card, you need to:

1. Make sure you pay off all the outstanding balance. Then, do BT/cash advance.
2. Hide that credit card and don't even try to use it until the balance is 0 again.
3. Put the pay back date in your calender/PDA/whatever to remind you to pay it back in full.

[gheart008]

got 0 debt,

just resist credit cards and pay cash

Sure, if you don't like things like free money and other goodies. But if you are someone who doesn't have the discipline of controlling your spending and payment habits, then please do stick with cash.

That statement doesn't make a whole lot of sense. Income is income regardless the form it is paid in for services rendered. I would like to see that argument go up against the CRA.

I think what he was trying to say was it's under the table so the CRA would never know about it. Paid under the table means no declared income.

[gheart008]

You gotta be kidding, but what credentials you needed to get it? That's the question. Many people can't get their hands on those cards, and how do they make money off you anyways?


Read the thread. Tons of people have gotten it without any problems.

I'm still waiting for the Loch Ness Monster...

[halflife150]

I think what he was trying to say was it's under the table so the CRA would never know about it. Paid under the table means no declared income.

Well hiding income isn't as easy as it sounds. CRA isn't stupid. If he is living off that income and paying for his education, it's a big red flag if he was able to support himself yet declared no income.

[gman]

Well hiding income isn't as easy as it sounds. CRA isn't stupid. If he is living off that income and paying for his education, it's a big red flag if he was able to support himself yet declared no income.

Comparing with other countries, yes, CRA is pretty stupid. Do you really think CRA will check every university student to find out how they are supported? Many of them are supported by parents. Did CRA ever try to spend time/money/resource to confirm that is true?

[thefleet]

I dont want to generalize, but I'm going to anyways, many asians (particularly Chinese) have scammed the CRA for years. They'll do anything for cash transactions to renaming businesses (restaurants) so that they don't pay tax. (i'm chinese btw ;) )

[bubble.tea]

...I'm still waiting for the Loch Ness Monster...

put me down for x1 LNmonster also :).

[sjweyman]

Fack. Oh well, I'll have to stick to my Amex, then, until the BT period is over, after which I'll transfer it back to my LOC at 7.3%.

Time to balance transfer the whole thing to a 0% card najibs and then cut it up. Glad you learned the lesson before it stung you too bad!

[Chuck Garabedian]

0% debt here...

This is a movie all credit card abusers should watch.

http://www.indebtwetrust.org/trailer.php

I got this message when accessing that site:

Hosting Account Has Expired
The hosting account for www.indebtwetrust.org has expired.

Looks like they didn't pay their debt.

[najibs]

It is worse.

Whenever you want to take advantage of low interest promotion of credit card, you need to:

1. Make sure you pay off all the outstanding balance. Then, do BT/cash advance.
2. Hide that credit card and don't even try to use it until the balance is 0 again.
3. Put the pay back date in your calender/PDA/whatever to remind you to pay it back in full.

They sure make the terms and conditions hard to understand. I took a pic of the T&C I received with the MBNA Starwood, so let's see if we can dissect. From my understanding, If my balance is at $0, I do a BT (0%) for $1000, and then I rack up $400 in purchases (balance is now $1400) and pay $400 on my next statement, then the way I understood it, is that I would NOT be charged any interest because that initial $1000 is 0% from the BT. No?

http://i76.photobucket.com/albums/j5/vantecs/tc.jpg

[Kommander_KornFlakes]

I got this message when accessing that site:

Hosting Account Has Expired
The hosting account for www.indebtwetrust.org has expired.

Looks like they didn't pay their debt.

It might be your end that's flawed, I just saw the video without problems.

Wow, in the video they show the "U.S. national debt clock" and the U.S. owns $8.7 trillion, yes trillion, dollars.... the same clock shows $88,760 and says "Your family share of the national debt". The clock is growing by $25,000 every second :eek:

-

From najibs scanned CC contract:

Any balance less than zero will be treated as zero

WTF? Can someone explain to me this ******** statement?

-

[najibs]

From najibs scanned CC contract:



WTF? Can someone explain to me this ******** statement?

-

That's the thing, even though it's in writing, and the answer is there, I find it extremely difficult to understand, and I'm not sure if what I think I understand is what it really is.

[pitz]

WTF? Can someone explain to me this ******** statement?


Basically it means, under no circumstances, will they pay you interest on any positive (credit) balances left on the card.

I think the point they're trying to hammer home in that movie, "In Debt We Trust", and in the other movie, "Maxed Out", is that the US essentially has been in a state of stagnation for income growth for the past 20 years, and that the country needs to return to manufacturing and innovation as the engines of economic growth, not banking, which is just a mirage of wealth redistribution that eventually makes poor people poorer, and the rich richer, but devalues society as a whole.

[gman]

-
WTF? Can someone explain to me this ******** statement?
-

That actually is the easiest part of the whole paragraph. It was talking about calculating interest.

[BadDrafter]

I think the point they're trying to hammer home in that movie, "In Debt We Trust", and in the other movie, "Maxed Out", is that the US essentially has been in a state of stagnation for income growth for the past 20 years, and that the country needs to return to manufacturing and innovation as the engines of economic growth, not banking, which is just a mirage of wealth redistribution that eventually makes poor people poorer, and the rich richer, but devalues society as a whole.

I haven't seen "Maxed Out", but I will put it on my Zip list. I got a different message from "In Debt We Trust". In Debt We Trust was mostly about debt, money lending and the credit card industry, not about the economy as a whole. I will watch the other movie though.

The message I got was that people need to stop looking at credit cards as a replacement for real money, because it's not. That credit card companies hook kids when they are young (and not working) and are highly immoral and irresponsible in explaining what it is their service is. Also that credit card companies in the US (not sure how it is here since I'm a responsible person) knowingly give cards to people they know will never be able to pay back and therefore are like the mafia taking an eternal cut.

To me, it was more a movie about the increasing role debt is taking in the US, then it was about returning to any kind of past glory. I didn't find any political leanings in that movie at all.

[max88]

They sure make the terms and conditions hard to understand. I took a pic of the T&C I received with the MBNA Starwood, so let's see if we can dissect. From my understanding, If my balance is at $0, I do a BT (0%) for $1000, and then I rack up $400 in purchases (balance is now $1400) and pay $400 on my next statement, then the way I understood it, is that I would NOT be charged any interest because that initial $1000 is 0% from the BT. No?


To summarize:
- they don't pay you interest even you have a credit balance (pitz).
- Interest is compounded daily.
- BT, cash advance, and purchase may have different interest rates, so interest calculation is done seperately.
- while it's not explained on the T&C, most likely your $400 payment is first applied to the 0% BT portion, bringing it to $600. And your $400 purchases portion remains unpaid and continues to incur interest, so you will be charged interest.

[brunes]

People, repeat after me - let there be NO confusion.

CREDIT CARD PAYMENTS ARE ALWAYS APPLIED TOWARD THE LOWEST INTEREST RATE BALANCES FIRST. This is true for EVERY bank, EVERY store card. Check your materials it IS spelled out in your account agreement. The timing of the transactions is irrelevant, only the interest rate matters.

So if you borrow $10,000, then charge $100, that $100 WILL ACCRUE 19.9+% INTEREST ON THE $100, COMPOUNDED UNTIL THE COMPLETE $10100 IS PAID IN FULL, INCLUDING ANY INTEREST ON BOTH BALANCES.


IF YOU DO BT WITH A CREDIT CARD DO NOT CHARGE ANYTHING ON THAT CARD UNTIL THE BALANCE IS PAID IN FULL.

There. End of discussion.

[bubble.tea]

wait a minute.......I .... did a $4600 BT to, at 3.99%, if I charge $400 a month to it of regular purchases,.... is actually accruing 19.99% interest???
so...you need a bookie to front you the $4600? I'll give you 5% :D. That's better than your LOC :lol:....c'mmmmooooooooooooooooon.

[Kommander_KornFlakes]

People, repeat after me - let there be NO confusion.

CREDIT CARD PAYMENTS ARE ALWAYS APPLIED TOWARD THE LOWEST INTEREST RATE BALANCES FIRST. This is true for EVERY bank, EVERY store card. Check your materials it IS spelled out in your account agreement. The timing of the transactions is irrelevant, only the interest rate matters.

So if you borrow $10,000, then charge $100, that $100 WILL ACCRUE 19.9+% INTEREST ON THE $100, COMPOUNDED UNTIL THE COMPLETE $10100 IS PAID IN FULL, INCLUDING ANY INTEREST ON BOTH BALANCES.


IF YOU DO BT WITH A CREDIT CARD DO NOT CHARGE ANYTHING ON THAT CARD UNTIL THE BALANCE IS PAID IN FULL.

There. End of discussion.

Wow, Brunes, you nailed it loud and clear, whoever cannot understand your post is a complete ****** and is hopeless.
-

[xlfe]

Wow, Brunes, you nailed it loud and clear, whoever cannot understand your post is a complete ****** and is hopeless.
-

really? cuz i thought he was just reiterating everything on the info that comes with checks...just in larger print. what's not clear is what happens if u miss a payment :twisted:

[Arkaine]

Jeeze.. almost 10k.

My CC's available credit don't even total that amount.. which I like.

My LOC is another story.. but everything is at $0 ;)

[Kommander_KornFlakes]

My CC's available credit don't even total that amount.. which I like.



Why are you glad that you are crippled with a CC that offers a puny amount of available credit?

[YYZFA]

It sounds like that's all the credit he/she needs. Large amount of available credit does not automatically mean you get a more favourable report.

The most important thing is having a few revolving credit accounts, using them regularly, and most importantly, paying them off on time (preferably the full amount, but at least the minimum).

[felix]

0% debt here. I always pay mine in full, as with most RFD'ers here. Actually, everyone I know pays their balances in full without problems. Trying to spend less now on unncessary expenses, my statement was only $418 last month on my PCF Mastercard ... a record low for me! :)

[bubble.tea]

0% debt here. I always pay mine in full, as with most RFD'ers here. Actually, everyone I know pays their balances in full without problems. Trying to spend less now on unncessary expenses, my statement was only $418 last month on my PCF Mastercard ... a record low for me! :)

EGAD!! add a '0' on the end of that...and that will be my upcoming AMEX Bill

[hagbard]

Never had any kind of debt in my life other than a mortgage, and don't even have that now.

[Jucius Maximus]

Why are you glad that you are crippled with a CC that offers a puny amount of available credit?

Maybe he knows that he would be spending irresponsibly if he had that much credit. Not everyone is able to properly control impulse spending. You really just have to know yourself.

It is just like that with other addictions. Some people need to stay away from alcohol 100% of the time because even if they have just 1 drink then they fall down a slippery slope. But others who don't have that problem may not understand it.

[Arkaine]

Why are you glad that you are crippled with a CC that offers a puny amount of available credit?

Because I can't think of any purchase at this stage in my life where I would need that much credit?
I'm the type of person, I buy something and will pay it off each month.
I paid $4.56 in interest payments in 2007 only because I was out of town that time and it slipped my mind for one month.

If I was to purchase something in excess of 10,000 (emergency or necessity) it would be something I would be paying off each month.. hence I would be using my LOC with a much lower interest rate.

It sounds like that's all the credit he/she needs. Large amount of available credit does not automatically mean you get a more favourable report.

The most important thing is having a few revolving credit accounts, using them regularly, and most importantly, paying them off on time (preferably the full amount, but at least the minimum).

Exactly!

(btw: my total CC allowance is 8,000 (again, my choice) I wouldn't call that crippled.)

[hoob]

EGAD!! add a '0' on the end of that...and that will be my upcoming AMEX Bill

Yeah... The worst is when AMEX sends you your year-end summary. Even when I "know" how much I'm spending, having it all summarized and tabulated is rather disconcerting.

[gman]

Yeah... The worst is when AMEX sends you your year-end summary. Even when I "know" how much I'm spending, having it all summarized and tabulated is rather disconcerting.

They have year end report?? I have 3 Amex cards and I never receive any year end report that are 'summarized and tabulated'. May be it is an extra service for the Amex card that charges annual fee.

For those who like to cap the credit limit, just because the bank gives you higher credit limit does not mean you have to use it. You never know when you may want to use it. Yes, you can use your LOC as your emergency fund. I do the same too. However, from time to time, CC can actually offers you a better interest rate than your LOC. That is better than prime. For 1.5 year, I borrowed from Amex 1.99% through 2 different Amex cards that I don't use at all. 6 month from Card A, 6 month from card B and then 6 month from card A.

[Krox]

They have year end report?? I have 3 Amex cards and I never receive any year end report that are 'summarized and tabulated'. May be it is an extra service for the Amex card that charges annual fee.

For those who like to cap the credit limit, just because the bank gives you higher credit limit does not mean you have to use it. You never know when you may want to use it. Yes, you can use your LOC as your emergency fund. I do the same too. However, from time to time, CC can actually offers you a better interest rate than your LOC. That is better than prime. For 1.5 year, I borrowed from Amex 1.99% through 2 different Amex cards that I don't use at all. 6 month from Card A, 6 month from card B and then 6 month from card A.

ALso, put it on your CC first then use your LOC to pay it off. That way you get the 1 month grace period (no interest) from the CC whereas the LOC will start charging the moment you take money out.

[gman]

ALso, put it on your CC first then use your LOC to pay it off. That way you get the 1 month grace period (no interest) from the CC whereas the LOC will start charging the moment you take money out.

There is no grace period if you do cash advance (for emergency). That is the situation I was talking about.

[nobody1234]

I paid $4.56 in interest payments in 2007 only because I was out of town that time and it slipped my mind for one month.


FYI, if you are a good customer and miss or are late for one payment by accident you can usually get them to refund your interest if you call, explain what happened and ask if there is anything they can do. I made a large bill payment to the wrong account once by accident while I was on vacation, didn't notice until I came back and had incurred some hefty charges. I called up the CC company and explained what happened. They saw it was my first missed payment and refunded me the interest charges.

[Arkaine]

FYI, if you are a good customer and miss or are late for one payment by accident you can usually get them to refund your interest if you call, explain what happened and ask if there is anything they can do. I made a large bill payment to the wrong account once by accident while I was on vacation, didn't notice until I came back and had incurred some hefty charges. I called up the CC company and explained what happened. They saw it was my first missed payment and refunded me the interest charges.

Good call.. I'll definitely do that next time.

Only reason I know that amount is because I called asking if they would reduce my interest rate. The lady is like, sir you only had charges of $4.XX.. if you plan on carrying a balance in the future just call us back and we will look at your rate. lol

[Krox]

There is no grace period if you do cash advance (for emergency). That is the situation I was talking about.

Very true.

Personally, i don't see that many emergencies in my life where largish sums of cash are required versus a credit card. Hopefully, i won't either.

[hoob]

Very true.

Personally, i don't see that many emergencies in my life where largish sums of cash are required versus a credit card. Hopefully, i won't either.

As long as you can post bail with your credit card there's no worries! :D

[Tedder]

the results may be skewed if they take in account all of the people getting credit at 0% to put in their savings accounts.

my wife and I have a combined $75,000 in 0% credit cards. We've never paid a penny in interest in our lives and never will.

[bubble.tea]

my wife and I have a combined $75,000 in 0% credit cards. We've never paid a penny in interest in our lives and never will.

'never a penny?:D

[gman]

my wife and I have a combined $75,000 in 0% credit cards. We've never paid a penny in interest in our lives and never will.

What is a 0% credit card? Do you mean a credit card with 0% balance transfer promotion offer?

[gerbil]

my wife and I have a combined $75,000 in 0% credit cards. We've never paid a penny in interest in our lives and never will.

2 things ..

what would you do @ a CC with $75000 credit limit? down payment for a house?
it's really unlikely that you didn't pay a penny having this much limit? the only way you get this much credit limit is having a good rating .. still having a good rating don't necessarily haven't payed any fees @ all ..

unless you could prove all of us wrong ..

[hoob]

2 things ..

what would you do @ a CC with $75000 credit limit? down payment for a house?
it's really unlikely that you didn't pay a penny having this much limit? the only way you get this much credit limit is having a good rating .. still having a good rating don't necessarily haven't payed any fees @ all ..

unless you could prove all of us wrong ..

$75000 in total credit card limit is high, but not outlandish. Yes, it would only be available to people with good credit who seek out the extra cards, but I doubt it would be difficult to do.

The interest rate and credit limit of your cards have nothing to do with the likelihood that you'll pay any interest on them. The only way you pay interest on credit cards, assuming you don't make any cash advances that incur immediate interest, is if you're too financially sloppy or lazy to keep track of your billing cycles and payment obligations.

If you abide by the terms and conditions of the cards, the Balance Transfer agreements, etc, then you don't need to pay interest fees. No "proof" is really required.

[sockboy]

I don't find the "never a penny" claim to be all that unreasonable. The 75k is split between the two of them. I have never paid a penny of cc interest, and could easily have 38k of cc credit by myself. The amount of credit you can get has nothing to do with having paid interest in the past. If you have credit cards, use them extensively and pay them off each month, you can get a lot of credit.

[trancedude]

Yeah, I have a pile of credit card debt, but most of that is a 0% offer from Citi.

What's the 0% Credit Card ? Do you have some info ? Thanks

[mystical2003]

I don't find the "never a penny" claim to be all that unreasonable. The 75k is split between the two of them. I have never paid a penny of cc interest, and could easily have 38k of cc credit by myself. The amount of credit you can get has nothing to do with having paid interest in the past. If you have credit cards, use them extensively and pay them off each month, you can get a lot of credit.

Didn't say never a penny of cc interest. Said never a penny of interest. So never had, nor plans to have a mortgage. Good for them. All the more power to them if they can pay for their house in cash.

[gman]

2 things ..

what would you do @ a CC with $75000 credit limit? down payment for a house?
it's really unlikely that you didn't pay a penny having this much limit? the only way you get this much credit limit is having a good rating .. still having a good rating don't necessarily haven't payed any fees @ all ..

unless you could prove all of us wrong ..

2 things.

He said combined $75,000 in 0% credit cards and not just one card (of course, I don't know what exactly his 0% means as I said in previous post).

Combined $75K limit of many CC is not that much. I have more than that. Having that much credit limit does not mean you have to use them all in one time. The limit of each of my cards are between $10K to $15K. I have about 10 credit cards at the moment. I can pick and choose the one that gives me the most benefit.

[trancedude]

Can someone elighten me what are those 0% interest credit cards you are all referring to in this thread ? Who provides them ? Are they basically 3-6 month 0% on transferred balance and then 'tony soprano' interest rate applies ? :)

[bubble.tea]

Can someone elighten me what are those 0% interest credit cards you are all referring to in this thread ? Who provides them ? Are they basically 3-6 month 0% on transferred balance and then 'tony soprano' interest rate applies ? :)

Example #1 (http://www.redflagdeals.com/forums/showthread.php?t=411582)