Thursday, 12 June 2014

How Credit Card Companies are Outrageous

How Credit Card Companies are Outrageous

$18,000 Credit Limit, Zero Balance and 29.9% APR? Are You Serious? Yes, that is correct, and that’s exactly what my mother had on her CITIBANK Mastercard.

Credit Cards

I absolutely wasn’t surprised that my Mom had so much credit available.  She had good credit and her method of paying her bills were to pay them as soon as they arrived.  So that meant that she would always pay her bills on time.  So I wasn’t shock at the large credit line, but when I called to inform CITIBANK that she had passed away, there were a few things that struck me.  First, they asked if I wanted to take over the account.  I thought that was interesting and for a moment I played with the idea, but when I saw the APR of 29.9%, I knew right away that I wanted 0 part of that.

Now CITIBANK ought to be ashamed of themselves for taking advantage of little old ladies.  I can’t believe that they would charge my Mom such a high annual percentage rate.  That’s just ridiculous and it makes you wonder should you even live with a credit card today, especially with so many credit card companies charging steep fees, insane late charges and jacking up APR’s to such high levels even for their best customers.  It makes you re-think the idea of having a credit card at all. So, can you live without a credit card?

My answers is certainly you can!  Back in the day, I would have said that it was not possible, but in today’s day and age, with the invent of the debit card, living a life without credit cards is not only possible, but preferable.

Today you can use a debit card rather than a credit card for just about everything like making reservations to buy airline tickets, to paying for a hotel, and for any other purchase or that matter.  Which essentially means that you are paying with cash from your account rather than borrowing money at a high interest rate.

credit cards
Today when you live a life without credit cards it means that you care essentially living within your means.  It also means when you buy an item you are paying how much the item really costs versus double or triple the price when you add on the high interest rates that you will pay when you buy stuff on credit.

There are so many good things that come out of living without a credit card that everyone should try it.  

Think about these things…when you live off of cash versus credit you:

1.  Earn interest vs. paying it.  Instead of spending a ton of money, you will end up saving more money that you can put into an interest bearing account and actually begin to earn interest vs paying it.
2.  Save for what you want versus paying high interest and more for what you want.  This is so true.  When it comes down to major purchases, you will actually have to save up for it and you will end up coming out ahead while you earn interest when you’re saving for that major purchase.

So, if you decide to live without credit  cards you can try using the envelope system so that you don’t over extend your monthly budget.

Also, you can use Paypal if you need to have some form of credit card on hand.  Paypal will give you a card and you can transfer money from your checking account to your Paypal account and you can use the Paypal card for your purchases.

All of these money saving tips and more are available when you purchase the Debt Smash System E-book. Pick up your copy today!