Comments on: Part 3: Answers to your credit questions

By: The Dogfighter Returns

The Dogfighter Returns — Wed, 29 Jul 2009 22:21:32 +0000

ganative my strategy reduces interest expense assuming that the person already has a heloc. This is the essence of finance. How is saving money a bad idea?

The interest on a personal vehicle is not deductible for tax purposes however if you use a heloc to pay for it, the interest becomes deductible.

FYI to make that unsecured creditcard secured in the event you default, all the cc has to do is sue you and they will be able to put a lien on all your assets.

Who said you cannot transfer the heloc back to a credit card? helocs have more flexibility. you can pay interest only if you want.

By: The Answer

The Answer — Wed, 29 Jul 2009 19:20:51 +0000

My brother works in a Mariott customer service call center where he handles complaints all day about debit card holds in excess of the room charges. It happens. And if it hasn’t happened to you, hooray for you. Typically, my brother says, it takes at least two business days to remove a hold. The bank is the only party that can remove the hold. He says the hold is typically for about double the room rate.

By: Heath

Heath — Wed, 29 Jul 2009 18:32:20 +0000

Brian,

You are laughable!

By: GaNative

GaNative — Wed, 29 Jul 2009 18:32:18 +0000

I’ve used my debit card at hotels before and they never put a hold for any amount on it. In fact they didn’t touch my account until I checked out of the hotel and then tool only the amount of the bill.

By: Brian

Brian — Wed, 29 Jul 2009 18:24:27 +0000

If a hotel room is $50.00 per night then hotel puts a “hold” on your debit card for $100. The hold is released 72 hours after checkout

By: GaNative

GaNative — Wed, 29 Jul 2009 18:21:50 +0000

The Dogfighter Returns, Refinancing your house to pay off credit cards is a very bad idea. Credit Cards are unsecured debt. Basically if you don’t pay them, they have no recourse. Your mortgage on the other hand is secured by the home. You don’t pay your mortgage, they take your house. Never, never, refinance your home to pay off credit cards.

By: Heath

Heath — Wed, 29 Jul 2009 17:33:00 +0000

Brian,

Point 1. Many banks will return your money the next day…..

Point 2. Ummm, WOW!! Brian, “YOUR” money is tied up? If you paid for the room..it is no longer…”YOUR” money. It is the hotel’s money. I book rooms all the time….if you can balance a checkbook…it’s not a problem. I am sorry you have problems with that.

Neither one of those are really a GIGANTIC gotcha….keep reaching for straws.

Using a credit card is ignorant.

By: Brian

Brian — Wed, 29 Jul 2009 17:03:58 +0000

To all the people speakingabout “zero liability” on debit card. You are leaving out a few GIGANTIC gotchas:

1. The bank will not return your cash instantaneously. You have to wait and go through a process to get your money returned

2. Book a hotel room on a debit card and see how long your moneyy is tied up.

Again, CCs are not for everyone, but to have one blanket rule is ignorant.

By: The Dogfighter Returns

The Dogfighter Returns — Wed, 29 Jul 2009 16:44:33 +0000

the advantage of refinancing to pay off credit card is that:

1. your interest rate is reduced.

2. the interest is now deductible on your tax return

keep it open and once in a while use it so that it doesn’t get closed for non-activity.

no a prepaid credit card will not boost your credit score.

credit cards are the best. I love them. Whenever I have a problem with a merchant the credit card is always available to investigate. If you use your debit card you do not have this luxury. I do not have to carry cash around.

when savings accounts were paying 5% i would take a cash advance for 0% and earn 5% on $20K after the balance transfer fee of about $150.00 I would have at least $500.00 to $700.00 for the year.

to increase your credit limit simply buy something every month and pay it off by the due date. After five months you will be flooded with pre-approved credit applications.

By: brandon

brandon — Wed, 29 Jul 2009 16:41:40 +0000

Yeah, times are hard but there are ways around it. My girl friend and I live together (saves money). I am lucky that I have a good job, but we have taken advantage of all the liberal give aways for her. She now gets up to 79 weeks unemployment, she claims to pay the rent (which she really does not, I do) so she can get $200 worth of food stamps per month. I can’t even believe how much is out there just for the asking.
They are now paying 65% of her insurance, which is cheaper than what my employer’s premium is. She also does some baby sitting (she loves kids) and other things, all for cash of course, so not to effect any free benefits.

It is really working out great. She gets to stay at home most of the time, do what ever she wants and discovered that she actually has more money that when she was working, plus she is not as tired and our sex life has gotten even better (and yes, she get free birth control)

Now, all of you can discuss debt, credit cards and the like – we have found that the US and State Governments are our ‘credit cards’ and we don’t have to even pay the bill.

Thanks. Oh, when times get better I am sure she will go back to work, but for now it;s great.