Minimum Balance.

[Admin]

Anybody that knows me, knows that I play the credit card game to the max. I'm big on 0% financing and strecthing my dollars till their s**ttin nickles. Some call me a cheap focker and I guess I'll have to admit to those accusations. I make very little money in comparrison to the common man. Very litle money in comparrison to my old contractor days when I chased the mighty dollar day in and day out. Thank God I've smartened up since then. Somehow I never got ahead till I quit working.

You've all heard me talk about focusing on the little things. Little earnings and little savings here and there all add up. You've seen all the free steaks, rain gear, waders, trail cams and other goodies I get for free just by paying my way through my daily lifes expendetures. Whenever I can buy things on 0%, I'm working with sombody elses money. I recently started my new business with the jerky and other foods. Instead of investing my own capitol and denting my nestegg, I pay for my jerky, my seasonings and my booth fees with a rewads card. Right off the bat I earn money from BUYING my goods and then I earn money when SELLING them. Buying the goods with Visa banks money gives me 30 days to make the cash to pay it back and never touch a dime of my own money. I did the same thing when I stocked my trapping supply shop. I spent 4 grand on supplies - earned 40.00 in rewards money from the git go - tranferred the balance to a 0% for 15 months card which gives me 15 months to sell the goods before I ever have to pay for them. How fricken cool is that?

So... I'm always taking advantage of Home Depots 0% for 12 month purchase offer. I love these things. Even though there's no payments due I throw them money every month and always have them paid off before the promotional thingy expires. I got my bill today and was looking it over while having supper. I presently have a balance of 1,960.00 which will be paid off long before they try to stick me with interest. Anyway, I'm looking at this thing and it says that if I ONLY paid the MINIMUM BALANCE and MADE NO OTHER PURCHASES this bill would be paid off in NINETEEN FRICKEN YEARS. with an estimated total of 4,831.00

HOLY CRAP Do people really do this? No wonder the world is in the shape it's in. I honestly could not imagine taking 19 years to pay off this bill and paying all that interest. Reading this really gives me a true understanding why so many people work and work and work and never get ahead. Pretty amazing.

[flyguy]

After talking to you about the money game it is unbelievable that more people don't do it

[grinr]

Aug 30, 2010 18:59:05 GMT -5 Admin said:

I'm big on 0% financing and strecthing my dollars till their s**ttin nickles.

LOL..if you were CDN,you could could squeeze a nickel til the beaver s**ts.

[dirtyd]

I'm afraid people really do pay for 19 years or at least well into the financing time frame, in fact I think you're the exception to the rule. I'm an exception as well and hopefully most folks on this site are but the scary truth is that there are obviously enough people thinking "I really can't afford this kitchen remodel now but I won't have to pay for it for a year either, the economy is sure to pick up by then". Very scary thought.

The way I've heard it explained to me is that once you hit the "year" or whatever the pre-determine "no interest" time frame is you're back charged. Somebody is paying to keep all those wall street guys well funded. Simple rule, if you can't afford it today, don't buy it. If you can afford it and are disciplined enough then JC's advise is a great way to make the system work for you.

[maritimer]

Aug 30, 2010 19:22:28 GMT -5 grinr said:

Aug 30, 2010 18:59:05 GMT -5 Admin said:

I'm big on 0% financing and strecthing my dollars till their s**ttin nickles.

LOL..if you were CDN,you could could squeeze a nickel til the beaver s**ts.

[Nutso]

Those "no payments for a year" deals usually all backfire. Once the year is up, not only do you have to make the payment, you owe all the interest that was building up while you weren't paying. That is why they do it.....the business is not going to lose out on any money.

I am always surprised that people do not read the small print.

A friend of my Dad's (who is a tad slow anyway) bought a trailer and signed a payment plan that was interest only, with one balloon payment due at the end of 3 years...well the time came for the balloon payment, and, of course, he didn't have the $$...He lost the house.

[lookout]

JC - smart way of doing business, BUT.
all those "reward" programs....I'm not much of a big conspiracy guy with the government seeing as I work for them, but doesn't it make you nervous that all that marketing information is out there for the picking, selling and manipulating?
I avoid those programs regardless of what they provide as I know I'm on a list somewhere. It is personal information that is surely being sold by the organization gathering it, otherwise they wouldn't be paying you for it. And I don't like the reasons they're selling it.

[Admin]

Aug 31, 2010 11:29:49 GMT -5 lookout said:

but doesn't it make you nervous that all that marketing information is out there for the picking, selling and manipulating?

Doesn't make me worry one bit. I don't jump on to every card offer I get. I've stayed with the same card companies for years and feel very safe with them. Our personal information is sold and traded all the time through many other ways as well as credit card sales. I think it's pretty impossible to avoid it. The "rewards" are there to bait people into using their credit cards rather than cash cause "most people" aren't disciplined enough to pay the bill every month. My X wife used to think that "available balance" was like money in the bank and "minimum balance" was her only obligation. The point of this post was how ridiculous it would be to only pay the minimum balance on this account of mine cause it would take 19 years to pay off a debt of 1960.00 and I'd be paying more than double in the end. Now THAT'S a stupid way of doing business.
The people that credit card companies target through the sale of personal information, are the people that pay the minimum balance and continue to pay compounded interest. The banks love these folks. Targeting me or selling my info would do them NO GOOD cause they'll never get a dime of my money. It COST them money for me to have their cards. Cabela's don't even send me catalogs anymore cause every time I buy something from them THEY have to pay for it. I have taken over 600.00 worth of Master Cards money and over a thousand from Visa. Having my personal info won't benefit any of these financial institutions.

I certainly can appreciate your concern but I'm swimming in pretty safe waters here. Remember this past spring when I put 36 whole chickens in my freezer for free? I think that's pretty awesome. The banks should just smarten up and take the cards away from me.

Nutso, Yes you are right about how the "no payments for a year" thing works. Yes if the year runs out and that person doesn't pay the bill off then he gets slammed with a full year of backed up interest. Just "BECAUSE" it says no paymenst for 12 months doesn't mean you shouldn't make them. My whole cabin project is on Home Depot no payment deals as most of my large purchases are. It's nice to be able to buy something and have 12 months to pay it off in dribbs and drabbs as my financial condition will allow. I'm just always certain that bill gets paid off entirely before the promotional deadline expires.

Here's a lil tidbit for ya'll:

If I go to Home Depot and spend 2 grand and pay cash, the money's gone and the story ends there.
A while back, Paypal business account was paying a 5% return on money held in my account. I could go to Home Depot, Buy that 2000.00 purchase and have 12 months no payments - no interest. Put my 2 grand in a paypal business account and let it sit there and earn 5% for 11 months or so. Withdraw it, scrape off my free earnings and pay the Home Depot debt. Free money with a small amount of computer work.

Or... I could be a retard and let the 12 month promotion thingy expire and pay 12 months of compounded interest. Yeah That

[yankee]

As far as the rewards go, the merchant(seller) pays most if not all of it. It is costing the credit card companies and the banks nothing. It is just cashflow for them with what usualy becomes a good bit more with interest.

[trapperandhunter]

i just noticed this thread, very well put JC, i have a visa card that i get 2 points for every dollar i spend that can be spent on any type of travel expense, all i do is charge a flight, hotel ect. to my credit card and then when i am going my online banking transfer the points towards that item, its all through the bank i do mine with (TD) and it isn't one of the ones where you can only travel in certain times ect. which flat out suck. I only get 25 free transactions a month from my debit card so i use my visa for everything and transfer the money every week of what i spend so no interest at all, and i don't have to pay for going over my transactions for the month, i do all my baking online so it is quick and easy! i am also still in college so i have no annual fee on the credit card or debit card other than if i do to many transactions with my debit. i work hard for my money and i want to stretch it to the fullest and get as much bang for my buck as possible!

[bigpat]

JC this is a good post. ;D I used to live with a woman that would have gotten along just fine with your Ex. I don't even know how, but I ended up sucked right in the whole credit card ride. Long story short, it was a costly lesson. Since then, I've been very leery of CCs. I think I'm finally disciplined enough to start taking advantage of, I mean using, them again. I always enjoy this kind of learning post. Karma to you

[stickbowhntr]

JC LOVE your plan but simple honest TRUTH is most people are not THAT disaplined in todays world. MY WIFE INCLUDED she would break me in that senerio...