Comments on: Revolving Credit http://gailvazoxlade.com/blog/archives/288 Thu, 09 Feb 2012 04:25:59 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Adeline Tyeryar http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-43916 Adeline Tyeryar Sat, 17 Jul 2010 15:29:34 +0000 http://gailvazoxlade.com/blog/?p=288#comment-43916 Hey! Thanks alot for this great blogpost! btw: I have found this site where anybody can get a bank account at an austrian bank: http://www.konto-im-ausland.info/ Hope this is useful for you! Have a nice day Hey! Thanks alot for this great blogpost! btw: I have found this site where anybody can get a bank account at an austrian bank: http://www.konto-im-ausland.info/ Hope this is useful for you! Have a nice day

]]> By: Ellie http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4184 Ellie Tue, 30 Dec 2008 20:49:02 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4184 Natasha, Citizens Bank will let you break your savings down into multiple accounts, We currently have three (plus a chequing account): Everday savings - for mortgage and insurance payments, home maintenance, etc.; Emergency Fund; and Baby Savings - since we are expecting a little one in March. You can open the additional accounts online by yourself after the first one. Also no service fees on savings accounts and no fees on chequing account if you keep $1000 in the account. Also, they only invest in socially responsible investments, which is an extra bonus. Natasha,
Citizens Bank will let you break your savings down into multiple accounts,
We currently have three (plus a chequing account): Everday savings – for mortgage and insurance payments, home maintenance, etc.; Emergency Fund; and Baby Savings – since we are expecting a little one in March. You can open the additional accounts online by yourself after the first one. Also no service fees on savings accounts and no fees on chequing account if you keep $1000 in the account. Also, they only invest in socially responsible investments, which is an extra bonus.

]]> By: psychsarah http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4124 psychsarah Tue, 30 Dec 2008 15:42:50 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4124 Natasha-banks like ING that don't have service fees will let you have as many accounts as your little heart desires. I know lots of people who have different ones for different savings goals. Plus, I am pretty sure there is software that will tally spending for you-perhaps others have suggestions? Natasha-banks like ING that don’t have service fees will let you have as many accounts as your little heart desires. I know lots of people who have different ones for different savings goals. Plus, I am pretty sure there is software that will tally spending for you-perhaps others have suggestions?

]]> By: Ajana http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4109 Ajana Tue, 30 Dec 2008 02:05:36 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4109 A 'well done' slap on the back for Jean L. (I find others' success stories inspiring.) At the moment I would not be happy with revolving credit. One, the interest rate of about 0.1% APR doesn't make it worth putting the money in a savings account. And two, I feel I need to be in control of my outgoings till my debt is gone, and I clear any credit card balance the next time I go online. Oh, and today I am 'technically' solvent, as least that's the way I like to look at it :). I still have US$5,000 in debt but my assets (emergency fund and small automatic monthly investment from a $200 pay rise) are greater, albeit it slightly. At the beginning of 2008, I was US$10,000 in debt, had zero dollars in the bank and the light at the end of the tunnel was a speeding train heading my way. I absolutely know that I couldn't be doing what I'm doing without Gail and her common sense methods. So a big thank you Gail and I wish you and your family a happy, healthy, prosperous and joyous 2009. A ‘well done’ slap on the back for Jean L. (I find others’ success stories inspiring.)

At the moment I would not be happy with revolving credit. One, the interest rate of about 0.1% APR doesn’t make it worth putting the money in a savings account. And two, I feel I need to be in control of my outgoings till my debt is gone, and I clear any credit card balance the next time I go online.

Oh, and today I am ‘technically’ solvent, as least that’s the way I like to look at it :) . I still have US$5,000 in debt but my assets (emergency fund and small automatic monthly investment from a $200 pay rise) are greater, albeit it slightly. At the beginning of 2008, I was US$10,000 in debt, had zero dollars in the bank and the light at the end of the tunnel was a speeding train heading my way.

I absolutely know that I couldn’t be doing what I’m doing without Gail and her common sense methods. So a big thank you Gail and I wish you and your family a happy, healthy, prosperous and joyous 2009.

]]> By: Natasha http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4107 Natasha Mon, 29 Dec 2008 22:16:56 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4107 You know, I've always wondered why banks wouldn't let you segregate a savings account into smaller chunks: Chunk 1 - Payroll Deposit Chunk 2 - Groceries Chunk 3 - Pay off Credit Card Chunk 4 - Save for Trip Chunk 5 - Save for Car Something to that effect where it's customizable and you can somewhat control what money goes where and when. They wouldn't be separate accounts - it would be 'fake' organization; taking the jars out of the equation. I suppose it is the programmer/designer in me that enjoys the sociability and flexibility of the web (in it's current trend) but I think it could help people sort of focus themselves. Or even if their savings account would automatically tally up how much a person has spent on a particular thing (e.g. everything from Hartmans and Loeb go under 'Food'). At least the people who were too lazy to figure it out every month could see where their money was going. You know, I’ve always wondered why banks wouldn’t let you segregate a savings account into smaller chunks:

Chunk 1 – Payroll Deposit
Chunk 2 – Groceries
Chunk 3 – Pay off Credit Card
Chunk 4 – Save for Trip
Chunk 5 – Save for Car

Something to that effect where it’s customizable and you can somewhat control what money goes where and when. They wouldn’t be separate accounts – it would be ‘fake’ organization; taking the jars out of the equation. I suppose it is the programmer/designer in me that enjoys the sociability and flexibility of the web (in it’s current trend) but I think it could help people sort of focus themselves.

Or even if their savings account would automatically tally up how much a person has spent on a particular thing (e.g. everything from Hartmans and Loeb go under ‘Food’). At least the people who were too lazy to figure it out every month could see where their money was going.

]]> By: Kim U http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4105 Kim U Mon, 29 Dec 2008 21:07:25 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4105 My Great-Grandmother went her entire life without a credit card. (Of course, right before her wedding her husband won a lottery in England, so that likely helped. :) ) Anyways, when I turned 18 I got a rush of people calling to offer me credit cards. That's the excuse I always used -- that my Great Grandmother never had one and I was carrying on the tradition. Sadly, eventually I wanted a credit rating and knew of no other way to get one, so I caved in... But I still can't believe how many people were banging on my door to give me credit back then. My Great-Grandmother went her entire life without a credit card. (Of course, right before her wedding her husband won a lottery in England, so that likely helped. :) )

Anyways, when I turned 18 I got a rush of people calling to offer me credit cards. That’s the excuse I always used — that my Great Grandmother never had one and I was carrying on the tradition. Sadly, eventually I wanted a credit rating and knew of no other way to get one, so I caved in… But I still can’t believe how many people were banging on my door to give me credit back then.

]]> By: Jean L http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4104 Jean L Mon, 29 Dec 2008 20:57:43 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4104 Gail, we called our student loan centre and bank today to get the updated daily interest rates on our loans. The upside to low interest rates for us is that an extra $3,000 will be paid towards the principal of our loans this year, and we'll be at $21K by the end of 2009 with our total debt. I have an excel spreadsheet that shows us how much principal and interest is paid monthly, so we can watch the balances go down. Considering we started out with $100K in student loans 7 years ago, and a $40K personal loan, we're very excited to be debt free in 2.5 years. I'm even hoping to be more aggressive this year and pay off more of the debt. I'm sick of it! :) Gail, we called our student loan centre and bank today to get the updated daily interest rates on our loans. The upside to low interest rates for us is that an extra $3,000 will be paid towards the principal of our loans this year, and we’ll be at $21K by the end of 2009 with our total debt. I have an excel spreadsheet that shows us how much principal and interest is paid monthly, so we can watch the balances go down.

Considering we started out with $100K in student loans 7 years ago, and a $40K personal loan, we’re very excited to be debt free in 2.5 years. I’m even hoping to be more aggressive this year and pay off more of the debt. I’m sick of it! :)

]]> By: karlene http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4101 karlene Mon, 29 Dec 2008 20:21:04 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4101 Thanks for the support Catherine! I know I will get there eventually...I had it almost all paid down at one point, and then came the cross-country move (twice in about one year) to throw everything out of whack again! Making a Net Worth Statement, and seeing the impact of my money going down every month might be one of the only things keeping me sane, when I wonder why I'm doing all of this budgeting and cutting back! Thanks for the support Catherine! I know I will get there eventually…I had it almost all paid down at one point, and then came the cross-country move (twice in about one year) to throw everything out of whack again!

Making a Net Worth Statement, and seeing the impact of my money going down every month might be one of the only things keeping me sane, when I wonder why I’m doing all of this budgeting and cutting back!

]]> By: KeenerPeople http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4099 KeenerPeople Mon, 29 Dec 2008 19:28:27 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4099 Hi Gail. I have a quick little question about credit. My husband and I have some credit cards paid off and wanted to cancel them all but one. Someone told us that doing that would reflect negatively on our credit score/history. Is that true? Thanks. Hi Gail.

I have a quick little question about credit. My husband and I have some credit cards paid off and wanted to cancel them all but one. Someone told us that doing that would reflect negatively on our credit score/history. Is that true?

Thanks.

]]> By: Tracy J http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4094 Tracy J Mon, 29 Dec 2008 18:34:09 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4094 If there was one class that I was really glad I paid attention to in highschool it was the fluff class called "Lifeskills". While so many of my friends skipped out on this optional class, I paid close attention to this whole business of how to open a chequing account, writing a resume, proper job interview tactics and most importantly the power of compound interest and credit ratings! This instructor, along with teaching the embarassing subject of sex ed to a class of arrogant and awkward teens, told us that a SMALL credit card gotten right at 18 and used only to buy something simple and fairly predictable like FUEL for the car and then paid in full each and every month was a FREE way to build an excellent credit rating that would make the cost of borrowing for anything big later on alot easier to handle. I can't believe that I listened, but I am very thankful that I did! I had a kick butt credit rating by the time I was done college! All because of my little card and paying it off on time and in full every month. So getting a small car loan at 21 was easy at a relatively painless interest rate and getting a mortgage at 24 (after the car was paid off) was also not a proplem at the better than the banks rate. (Sometimes I wonder how many people that are in trouble now, simply skipped out on that one hour class that was so important? Or thought they knew better than the "dumb teacher" or that nothing bad could happen to them?) I sound like I'm bragging, sorry, I just want to illustrate that positive EARLY education can have powerful outcomes, like the power of compund interest. If there was one class that I was really glad I paid attention to in highschool it was the fluff class called “Lifeskills”. While so many of my friends skipped out on this optional class, I paid close attention to this whole business of how to open a chequing account, writing a resume, proper job interview tactics and most importantly the power of compound interest and credit ratings! This instructor, along with teaching the embarassing subject of sex ed to a class of arrogant and awkward teens, told us that a SMALL credit card gotten right at 18 and used only to buy something simple and fairly predictable like FUEL for the car and then paid in full each and every month was a FREE way to build an excellent credit rating that would make the cost of borrowing for anything big later on alot easier to handle. I can’t believe that I listened, but I am very thankful that I did! I had a kick butt credit rating by the time I was done college! All because of my little card and paying it off on time and in full every month. So getting a small car loan at 21 was easy at a relatively painless interest rate and getting a mortgage at 24 (after the car was paid off) was also not a proplem at the better than the banks rate. (Sometimes I wonder how many people that are in trouble now, simply skipped out on that one hour class that was so important? Or thought they knew better than the “dumb teacher” or that nothing bad could happen to them?)
I sound like I’m bragging, sorry, I just want to illustrate that positive EARLY education can have powerful outcomes, like the power of compund interest.

]]> By: Ambe http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4092 Ambe Mon, 29 Dec 2008 18:15:32 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4092 We use credit cards regularly, and we pay off the balance. But we don't use them for everything. I prefer to use debit for most things, because I find it easier to keep track of. Our credit scores are good and we already have a mortgage, so I don't see any real reason to use credit cards exclusively. Sure, points are nice, but they can be a justification for spending extra money. Thinking about the AirMiles you're getting instead of the $40 you're spending, you know? Plus, it's never free to redeem them - there's always taxes and fees and so forth. A lot of the cards that offer points charge hefty annual fees as well, so that's another thing to keep in mind. We use credit cards regularly, and we pay off the balance. But we don’t use them for everything. I prefer to use debit for most things, because I find it easier to keep track of. Our credit scores are good and we already have a mortgage, so I don’t see any real reason to use credit cards exclusively.

Sure, points are nice, but they can be a justification for spending extra money. Thinking about the AirMiles you’re getting instead of the $40 you’re spending, you know? Plus, it’s never free to redeem them – there’s always taxes and fees and so forth. A lot of the cards that offer points charge hefty annual fees as well, so that’s another thing to keep in mind.

]]> By: Catherine http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4091 Catherine Mon, 29 Dec 2008 17:36:29 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4091 Sally~ hang in there! Every new lesson takes practice. I think you'll find you'll like the results in time. Karlene~you have to creep before you walk - each little bit you pay down brings you that much closer to being debt free. I'm doing the same thing here - trying to pay as much as possible each month - it's a good feeling to see the numbers drop albeit slowly...... Gail~ wishing you and yours a happy, healthy and prosperous New Year! Sally~ hang in there! Every new lesson takes practice. I think you’ll find
you’ll like the results in time.
Karlene~you have to creep before you walk – each little bit you pay down
brings you that much closer to being debt free. I’m doing the same
thing here – trying to pay as much as possible each month – it’s a
good feeling to see the numbers drop albeit slowly……
Gail~ wishing you and yours a happy, healthy and prosperous New Year!

]]> By: Doreen http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4089 Doreen Mon, 29 Dec 2008 17:02:49 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4089 We use the Aerogold CIBC Visa card. We use it for everything (home renovations, furniture, dining out, etc.). Consequently we've racked up tons of points. Until our eldest went on to university, we translated the points into return air fare to Calgary from Toronto for our family of 4. Then my husband and I had a return trip to London, England once; another time the points covered 3 return trips from Toronto to Vancouver + 2 nights in 4 star hotels. Now we use the points to fly our eldest back and forth from her University in Halifax. Like Michelle states, we pay everything off a few days before it comes due - using on-line banking. It does take discipline, but if you do it does pay off in spades. Best wishes to you Gail, for a very happy 2009 for you and your 2 children. We use the Aerogold CIBC Visa card. We use it for everything (home renovations, furniture, dining out, etc.). Consequently we’ve racked up tons of points. Until our eldest went on to university, we translated the points into return air fare to Calgary from Toronto for our family of 4. Then my husband and I had a return trip to London, England once; another time the points covered 3 return trips from Toronto to Vancouver + 2 nights in 4 star hotels. Now we use the points to fly our eldest back and forth from her University in Halifax. Like Michelle states, we pay everything off a few days before it comes due – using on-line banking. It does take discipline, but if you do it does pay off in spades.

Best wishes to you Gail, for a very happy 2009 for you and your 2 children.

]]> By: Sally http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4088 Sally Mon, 29 Dec 2008 16:10:04 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4088 But it is hard! This is the first month of trying to exclusively use our credit card for all purchases, keep the money used in a savings account and pay off the bill when it is due. It is giving me ulcers! I hate having a credit card balance eventhough I know the money is there. I don't know if I can do it again. I am sure this month was the worst with Christmas in there. It took me a long time to teach myself that having a balance - especially one I was paying interest on - was bad. I am having a hard time learning this new lesson. But it is hard! This is the first month of trying to exclusively use our credit card for all purchases, keep the money used in a savings account and pay off the bill when it is due. It is giving me ulcers! I hate having a credit card balance eventhough I know the money is there. I don’t know if I can do it again. I am sure this month was the worst with Christmas in there. It took me a long time to teach myself that having a balance – especially one I was paying interest on – was bad. I am having a hard time learning this new lesson.

]]> By: karlene http://gailvazoxlade.com/blog/archives/288/comment-page-1#comment-4087 karlene Mon, 29 Dec 2008 15:54:33 +0000 http://gailvazoxlade.com/blog/?p=288#comment-4087 I wish I can say that access to revolving credit has worked for me in the past. The only safe "points" card for me are ones like Shoppers Optimum, and Air Miles, where I don't charge anything to them, but earn points nonetheless. I don't think I have had my line of credit paid off since the day I opened it...but I was a student, and living beyond my means. Although it took many years to max it out (maybe 5?), and I paid down chunks at a time, it has always been a debt in the back of my head I feel I can never get rid of. Now I am slowly chipping away at it, and even though there is available credit now, I am sticking with my budget as closely as possible, and not getting back into that hole again. I wish I can say that access to revolving credit has worked for me in the past. The only safe “points” card for me are ones like Shoppers Optimum, and Air Miles, where I don’t charge anything to them, but earn points nonetheless. I don’t think I have had my line of credit paid off since the day I opened it…but I was a student, and living beyond my means. Although it took many years to max it out (maybe 5?), and I paid down chunks at a time, it has always been a debt in the back of my head I feel I can never get rid of. Now I am slowly chipping away at it, and even though there is available credit now, I am sticking with my budget as closely as possible, and not getting back into that hole again.

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