This is CREDITNET...

Discussion in 'Credit Talk' started by GEORGE, Aug 9, 2003.

  1. Amy B

    Amy B Well-Known Member

    Re: This is CREDITN

    They are super easy to make if you have Excel.

    I agree with you guys, it takes discipline after learning the first time. I know a lot of people who aren't discipline STILL after screwing up their credit repeatedly. It's sad.

    And there are those that just don't get (my parents) how credit can help you.
     
  2. GEORGE

    GEORGE Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: This is CREDITN

    Mine is just APPLE WORKS...

    You can just use any letter (WORD PROCESSING) form

    I just put the name like....kind of card....interest rate(s)....till when

    BofA================VISA PLAT==================4.00%/13.99% TILL PAID

    I USE 24PT I THINK I SAID FOR EASY SEEING (the till when is like 12pt)

    All the ======== are just equals for SPACE

    "IF" the BT rate expires like NOV 2003...I put that instead of (TILL PAID)
     
  3. GEORGE

    GEORGE Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: This is CREDITN

    HIGHEST (TOP OF PAGE) TO LOWEST (BOTTOM OF PAGE) SO YOU KNOW AT ALL TIMES WHAT TO PAY THE MOST ON...AND AT A GLANCE WHAT IS GOING TO EXPIRE SOON AND WHAT IT GOES TO...

    I just re-do the numbers as needed...and print a new page.
     
  4. RichGuy

    RichGuy Well-Known Member

    Re: This is CREDITNET

    Sure, credit can be interest-free, and that's great.

    But the value of interest-free loans can be exaggerated. Take the $10K entertainment center. I can't even imagine why it would cost that much, but let's suppose it's worth it. So you get an extra 30 days float on $10K at let's say 1.8% in your money market account. You make an extra $15 in interest. But it cost you $10K to get that extra $15 in interest.

    The point? The economics of your purchasing decisions depends far more on the price or the value of the goods purchased than it does on the interest rate. If you spend 20% less, that's far better for your budget than spending the full amount and paying 0% interest for a year.

    Unless you assume that you'll never pay the money back, i.e. that you'll die owing thousands of dollars in balance transfers. In that case, interest is your ONLY cost, since you never pay back the principal. So saving a few dollars in interest costs really does put extra money in your pocket.

    I just wanted to explore the issue in depth. But if anyone here is actually enjoying long-term and serial 0% rates for purchases they would have made anyway, I congratulate them. They're saving a lot on interest, which could otherwise have eaten up most of their payments and left them deeply in debt.
     
  5. Nestea

    Nestea Well-Known Member

    Re: This is CREDITNET

    oh, i though there was scripts in the page that did it for you or something...

    (banging my head against the wall)
    :)
     
  6. GEORGE

    GEORGE Well-Known Member

    Re: Re: This is CREDITNET

    SORRY...I'm not that computer literate...
     
  7. jsummers

    jsummers Well-Known Member

    Re: Re: This is CREDITNET

    Actually 10k, was VERY easy to spend on a entertainment center.. lol.. 5k for the television, 2k for the speakers.. and around another 2500 in components... and I didnt even factor in the furniture to house the evertainment center.. lol.. Which ran 1800.. Ya it was a perk.. one that I did not need.. but boy oh boy do I love it.. lol

    You make a good point the interest on the 10k for a month is going to bring in about another 15 to 25 dollars big deal right.. Well perhaps to some.. To others.. the 25.00 is considered free money.. and that done over several years.. can make a nice little sum that would otherwise not be there. Say you do this all the time.. and your yearly savings on all purchases equals a big 50 bucks of additional money in your money market.. Okay.. Well that 50 is making on average 2.0% in interest per year.. add a couple more years at 50 dollars of free money.. and the combined interest rate... You can have a nice sum over several years.

    I also know everyone is not able to do this, and I do consider myself very lucky to be able to at this point in my life.. I was just saying.. if used right credit can make you money.. wether it be 50 dollars a year or 10.. Its still more money that you had before..

    Which I think is everyones main goal..Now if I could just get the wifey to understand this concept.. lol..
     
  8. RichGuy

    RichGuy Well-Known Member

    Re: This is CREDITNET

    I see your point, which is well taken. That approach is similar to getting cash rebates or mileage rewards, which are a small percentage of actual spending but add up nevertheless.

    Let me emphasize, though, that rewards or rebates or playing the float are only beneficial if you're buying things you would have bought anyway, at prices you would have paid anyway. Then the extra 1% or even .1% is pure profit.
     
  9. Hedwig

    Hedwig Well-Known Member

    Re: This is CREDITNET

    I think that GEORGE and I and several others that do this are using the cards for everyday purchases. I've gotten a lot of debt transferred to low rate cards. That gets paid off at minimum payments except the highest interest rate, which gets all the extra money I have. I have them all set up to deduct the minimum payment from my checking account, so I never have to worry about a late payment. Then each month I see which is the highest rate and they get the extra.

    But I'm talking about the things we need. My prescription drugs. The groceries. Gas for the car. All on the card, and get delayed being paid for up to six weeks. That money can draw a little extra interest. Or maybe I'll pay the extra on the bills. That rate is higher than my savings account rate.

    When the bill comes due, I wait until a few days before it's due to pay it. But in the meantime, I have used the money I would have paid in cash for those things to pay the bills down, saving a few weeks of interest. Or I banked the money and made a few cents. I'm also getting frequent flyer miles for all of those day to day purchases, which means I don't have to spend the money on plane tickets for vacation. That puts even more money in my pocket.

    If you think it's insignificant and the amounts aren't worth the bother, try saving your change for a month or so and see how it adds up. So these pennies (and dollars on the airfare) over several years could add up to significant amounts of money.
     
  10. creditwork

    creditwork Well-Known Member

    Re: This is CREDITNET

    I use my cards to earn 19.47% APR. That is a lot better than money market rates or bonds. I have been doing it since 1996. It can work, make money with your credit.
    Not saying everyone can do this, but I am and so are a few people I know.

    www.creditsense.com
     
  11. RichGuy

    RichGuy Well-Known Member

    Re: This is CREDITNET

    IMHO, that's the secret to really successful float management. And it's only possible because you're carrying balances.

    What you describe is really a combination of 3 different approaches: rewards, float management, and long-term debt management. If your balances are significant at all, there's a lot more money to be saved on long-term debt than on the other two.
     

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