balance transfer

Currency, cash, legal tender, dough, cabbage, bucks, bread, green or whatever you call it. Money is a standard in modern economy. The other option would be a barter system. If I could trade services for other goods and services my wealth might be increased. Time is money for most of us and at least wage earners.  I will have to be satisfied with the dollar as income for now.

It’s time for me to transfer my credit card balance to a bank credit card. My monthly payments are already small because my balance is low but I might as well eliminate interest with the 0% APR for twelve months. My big bank credit card is another product in a list of financial services that are being marketed to me but it’s better than the retailer credit card. A local credit union is sending me information on transferring my auto loan. I should consider what they offer for banking services as well as a better interest rate on my loan.

Change can be good. I’m not sure if managing my debt can be considered saving money. I think it is more accurately spending less.  If I do go with my current bank I should hurry, before the offer expires! I’m not sure if I like the sense of urgency when it comes to debt. As soon as my first twelve months is up they won’t hesitate to charge me interest and fees to add to their capital while providing me with available funds.

loan centers

I’d like some money now, please. This thought along with more families and individuals living paycheck to paycheck is what’s contributing to the increase in short term loan centers popping up on every corner. If you have a tax refund or a car title you can easily get a loan according to lender’s ads. In the long run borrowers may be paying more than what they think they bargained for. Interest can be high with greater percentages when no collateral is provided.

Those borrowing with this method may have bad credit or have exhausted other means of credit or are just susceptible to advertising schemes employed by these convenience loan companies. When budgets are stretched to the limit this type of loan usually leads to more financial problems as interest compounds. The outcome of this type of lending encourages the clients to live beyond their means.

Of course, immediate gratification is great if you can’t wait a week for your tax refund to be fully processed. You could even improve your credit scores by paying a loan back or simply cash checks while paying a fee. Some of the tactics used by these independent lenders appear no less scrupulous then methods being employed by bigger banks for profit. Borrowing from a family member or friends may be more forgiving than a loan center. In the end, if someone is borrowing hundreds of dollars or less on a regular basis, they should be thinking about ways to spend less or earn more.

refunds

It’s tax time. We want our refunds, if we receive them, quickly and easily. When I filed my taxes last year I used direct deposit to my bank account. The IRS prefers this method of payment. It prevents loss and damage to checks sent through the mail. You can get your checks in 8-15 days, which is 7 days earlier then if they mailed a check, plus increased security.

I used this method last year and I plan to use it again. I’ve learned to make sure account numbers and routing numbers are correct and to have them available when filing. There is good information about resources for retrieving lost payments and it can be easier to access then electronic transfers. You may be able to file a Taxpayer Advocate Service form from the IRS if the proper information is processed.

How paperless should our money transactions be? It appears to benefit everyone. Offices are kept clean and organized and consumers can remain green. We have until April 15^th to decide.

If you aren’t ready to think about taxes yet enjoy my new blog, ArtList.

credit line

A credit card was first mentioned in a utopian novel written in 1887. It wasn’t until more than half a century later that what we now know as credit cards started to become popular. Today it’s hard to go through life without needing to have one. Even if you are like me and avoid charging it can be a good way to hold items without having to make changes to your checking balance. The concept of credit cards has been around for decades and is still far from a seamless worldwide system.

Recently on a shopping trip i learned if you use a Canadian credit card  it could be a half hour wait for authorization, according to the store clerk. Traditionally, In Japan cash has been more popular than credit. This is changing due to smartphones that are able to charge and consumers becoming more familiar with new technology. The pros and cons of cash versus credit should be the topic of another article.

This week I received a letter from my credit card company informing me they had increased my credit line an additional $1,000. I guess this is the type of thing you can look forward to when you make a few payments on time. This, I am sure, is to encourage me to spend and carry more debt with them. How else would they make money? It’s no secret. It states clearly on my bill that if I make only the minimum payment I will pay more in interest and the balance will take longer to pay off. I found this interesting since that is the only way a credit card company makes profit. If everyone paid in full each month it would be a charge card, not credit. Finding somewhere in the middle makes everyone happy.

Truthfully, I probably have the “wrong” credit card. My bank branch they told me that I was most likely pre-approved for a credit card through them. They enticed me with no interest for the first twelve months which would clearly encourage me to spend without remorse and they would gladly transfer any debt from my current credit card to theirs. My bank’s interest is better than the card that is sponsored by a retailer. I did finally spend my shopping rewards coupon that I mentioned in an earlier article. I was able to purchase three new pairs of boxer shorts. This may cover my interest payments but I am hesitant to call it a utopia.

overdraft services

Do you overdraft? This is the question my bank is asking me in an advertisement I received about their Debit Card Overdraft Service. It encourages me to add this helpful service when I sign into Online Banking. They say it will help my card from being declined. They also mention gas fill-ups and repairs. Good point! If my car is broke down or out of gas on the side of the road, having my debit card declined would not add to the circumstances and could prevent me from buying other goods and services that I need to drive to. In the letter they also mention this which they refer to as other purchases. True! Having my card declined could effect my shopping.
 They continue to entice me with the promise of convenience when I'm not carrying credit cards or cash. Should I really be out at all when I don't have enough money in my checking account and no cash or credit cards on me? I'm thinking, probably not. And last but not least they throw in the added bonus of more flexibility. In the event that I use the Overdraft Service I may be able to deposit more funds later that day to avoid the fees. If I have additional funds somewhere shouldn't I make them available to myself ?
This appeal for me to utilize the Overdraft Service seems to focus on the desperate situations that someone may be in at times. I'm not judging. It can happen to the best of us. What really concerned me is this. The service is potentially free if I do not use it but if I am unfortunate enough to need it they could charge me a fee of thirty five dollars. That seems expensive to me. Especially if i'm already having some money problems. I have had overdraft protection through other banks and I believe it was a percentage of the amount of money I needed to borrow at the time. If I need to make a large overdraft charge me more. If i'm only filling my tank up with gas, 35$ is more than half of what my fuel tank can hold. Thanks for the loan bank but I think i'd rather call a friend and ask to borrow forty and a gas can until my next payday.
The Overdraft Services letter makes me feel as if I should worry unless I have this service or shop for another bank with a better overdraft protection policy.

debit card changes

2011 was the year of the remake in Hollywod. It also seems to be the year of the remake of the debit card. In June of last year the Federal Reserve established new standards for debit card interchange fees. The fee is now twenty one cents and goes up a few cents for other factors such as fraud prevention measures. If it is necesarry, this nominal figure seems fair to me. The average debit card purchase is thirty eight dollars. Then just add another quarter onto that. Prior to this new ruling fees were capped at 44 cents. In response to this larger banks have started charging a monthly fee for using debit cards. My bank now charges me three dollars a month. Some banks are charging as much as five dollars a month to make up for revenue lost per swipe. Is everyone paying these debit card fees? Are bank customers at credit unions and community banks paying this also? This could effect my decision to change banks at some point. Approximately one year ago my debit card account was comprimised. You can read about it in an earlier post. I did what my bank sugggested and opened a second checking account with a second debit card. Eventually it became an inconvenience to carry two cards, remember two PIN numbers and simply manage what amounted to 4 accounts in all. I luckily now only have one savings and one checking account or my debit card fees might be seventy two dollars per year instead of only thirty six if i'm doing my math correctly. I realize there is a cost  for the hardware, software, electricity and work involved in monitoring and executing electronic transactions. Seriously, are all the fees being charged really valid? How much might we eventually be charged to spend our own money. Banks are already using our money to make loans and investments. Some days we should get twenty five cents added to our accounts per debit card swipe because the bank had a good day and we are helping out the economy. That might be too much of a happy ending.

rewards

Are credit card rewards worth the interest we pay on our credit card purchases? I think they might be if I only spend the amount of the coupon in the sponsor store. It also will depend on the amount of interest and balance that I am carrying on the card. It's clear the deals are designed to encourage us to shop. Can I resist the temptation to spend more than my shopping reward bonus? It could be a special challenge during the Holidays. With the emphasis on shopping at this time of year I thought it would be good to reinvestigate my finances along with my bank and credit card accounts. After a free credit check was offered by my bank I was relieved to see my credit was still excellent. They wanted me to continue the service with a monthly fee which i declined. I'm sure the time will come again soon when someone wants to check it for me. This usually includes a fee when performed by a leasing office regardless of whether I have the credit monitoring service or not. I'm wondering if other people pay to have there credit and identity safeguarded by these programs. I would also like to know what are the best deals being offered on credit cards. There are websites that you can use to make free comparisons of card providers. If this is the month that retailers make 25% to 40% of their annual sales then does that mean that's when consumers acquire 1/4 to 1/2 of their debts. Not me! This year i'm just looking to spend my credit card rewards.