Financial question / advice

[Flasch186]

Alright, Im wondering if Im missing out on some freebie's or a avenue that is out there for people that I simply dont know about so here is my questions:



what are ALL these credit cards with Points and rewards? Should these be used instead of Cash & check if they can be paid off monthly? Does paying them off immediately mean the points aren't accrued?

What about online bank accounts w/ higher APR's....are the differences worth the hassle?

What other financial things are out there that us little people may overlook but would be advantageous?

[Eaglesfan27]

Originally Posted by Flasch186

Alright, Im wondering if Im missing out on some freebie's or a avenue that is out there for people that I simply dont know about so here is my questions:



what are ALL these credit cards with Points and rewards? Should these be used instead of Cash & check if they can be paid off monthly? Does paying them off immediately mean the points aren't accrued?

What about online bank accounts w/ higher APR's....are the differences worth the hassle?

What other financial things are out there that us little people may overlook but would be advantageous?

I don't know if you accrue points/rewards if you pay them off completely, but I do know that I accrue a large number of points by using a card that offers a good plan and then paying off everything except for 25 dollars each month. That 25 dollars generates little interest and I feel that I come out well ahead of the curve in the process.

[Greyroofoo]

Well as for online "banking", I use the PayPal MoneyMarket for any short term savings. I think it pays 5.03% APY right now. Very simple to set up.

[Logan]

If you have any cash sitting in a savings account that you don't need immediate access to, definitely open up an online savings account. I use Emigrant, currently paying 5.05%, and it's easy to set up and use. Personally, I would put any extra money into an actual interest-earner, because I don't want traditional banks making a killing off paying me 0.8% on my savings deposits.

I recommend Emigrant, but all of them get high praise. Right now HSBC is paying 6% on all new money through 4/30/07. After that, it'll earn 5.05%.

[Neuqua]

I can vouch for the online banks as well. Been using ING Direct (4.5%) for a few months now and have never had any problems at all. Their rate isn't as high as the competitor's now but their customer service is top notch. They'll be offering a checking account in the near future as well which itself will be earning 3%, something to look out for.

[digamma]

My miles/rewards credit card gives me points even though I pay it off every month.

If you want a middleground on banking, you might look at Citibank which has a competitive online savings account to go with all of the services of a brick and mortar establishment. Of course, a lot of people dislike Citi for other reasons.

[Rich1033]

I have a Chase rewards card that I completely pay off every month. You can only redeem the points in $50 increments, but I have got $150 back in the 10 months or so I have had it. Im sure I will get another $50 back before my 12 month mark.

Works for me since Im someone who doesnt carry around much cash. As long as you can control how much you spend I cant see a negative.

[Flasch186]

Well I use a debit card mostly, so it seems I should look into closing this crap no rewards card I have through BofA Credit card, and open one that gives me something back....then use the rewards card, go home and pay it off through BofA online billpay. Or wait for the bill to come if thats something thats necessary.

[CU Tiger]

I personally don't use credit cards at all, based on a spiritual/philisophical choice, but I wonder how much these rewards could be worth. Seems all fine and well until a check arrives late or a computer error is made, and you are pounded by late fees and jacked up interests rates...

As for the savings I'll 2nd Ing.
I have an Ing. Orange account that pays 7.5% (though that number has come downto ~5%, I locked it in for 12 months with a 10k deposit)

[henry296]

Originally Posted by Flasch186

Well I use a debit card mostly, so it seems I should look into closing this crap no rewards card I have through BofA Credit card, and open one that gives me something back....then use the rewards card, go home and pay it off through BofA online billpay. Or wait for the bill to come if thats something thats necessary.

Flasch,

Let me start with the fact that I work for Bank of America, so that people realize my position.

However, please visit your local banking center to discuss our numerous reward credit cards. One of our newest gives rewards associated with Major League Baseball or Pets. They do have a small annual fee, but most of the other companies cards do to.

Also, we offer I USAirways Debit Card that earns miles as well if you are more comfortable with a debit card instead of credit cards.

Feel free to PM with any questions.

[Greyroofoo]

Annual Fees are the devil

[molson]

I get about 2 free flights a year using my Delta Skymiles AMEX, and I pay it off every month and don't spend a ton. There's an annual fee, but I more than made it back between the free flights and car rental claims they've paid (I've used them twice for rental car claims, and they dealt with them directly with no expense or headache for me).

If for some reason the rates increase or whatever, you can always just cancel the card and find something else. There's lots of websites out there that analyze the various programs and you really can take advantage if you you do your research and pay attention. I can't imagine there's still people using cash.

[Craptacular]

I have a Midwest Airlines card and an Amex Blue Cash Card, and pay them both in full every month. The Midwest card has an annual fee, but I've gotten triple or more of the value of those fees in flights so far. However, I have plenty of miles now, and no forseeable need for them anytime soon, so I'll be cancelling before the next annual fee is due. The Amex card has no fee, and pays cash back at a certain percentage, based on different thresholds. The percentages are higher at gas stations, drug stores, and grocery stores. The big problem is that three of the the places I spend the most money at (two different grocery stores and Menards) don't take Amex. I'll probably get a Mastercard or Visa-based cash card when I get rid of the Midwest one. As with many rewards cards, it's only worth it if you pay it off in full each month.

I'll also put a plug in for ING, or HSBC, etc. I have some money in an ING Savings Account, and earn more interest in a month or two than I would at my bank in a year ... even though I have a mortgage and home-equity loan with the bank.

[Flasch186]

i DID enroll in the BofA savings plan where they round up each debit card transaction and move the difference into savings. then they match up to $250 a year of that. $250/yr. is pretty good with my limited amount of funds to play into the APR equation.

[Ksyrup]

I've explained how I use my credit cards several times here, but I'll do it again - we have an Amex Delta Sky Miles card and a Capital One MC and use both for every monthly purchase we can. Primarily, we use the Amex with the MC for any store that doesn't take Amex. I've had both for 5+ years and have never paid a cent of interest on them. I even run work-related purchases through them to earn miles. I have probably gotten more than a dozen free flights from those cards over the past several years, and right now I've got 140K miles built up.

The only reason NOT to do something like this is if you can't control your spending. You just have to look at those cards not as credi cards per se, but monthly debit cards that must be paid off at the end of the month. We have separate "credit" cards that we use for purchases we don't intend to pay off immediately. I guess if you don't have that strict mindset, you can get yourself in trouble. Otherwise, it's been a phenomenal benefit for us, even factoring in the annual fee.

[GoldenEagle]

Flasch, I would say no. To me, the rewards are not worth the risk. If you know you can pay in full each month, then you could do it. But I do not want that responsibility. I am in the process of canceling all my credit cards and just using my debit card when needed.

The credit card companies are not stupid. They offer these free rewards know that the majority of Americans can not control their spending. I would tread carefully.

[stevew]

creditboards.com is a good place for this type of info.

[Suburban Rhythm]

My Discover gets paid off every month. But I put everything on there, and get cash back (starting at like .25% of annual purchases up to a certain level, then .5%, then eventually up to 1%).

As long as you are paying it off, you aren't racking up any interest charges, so it is pretty much the equivalent of cash, with a 30 day grace period, and they end up paying you to use their card. As long as you get a card with no annual fee, you are losing NOTHING.

[stevew]

The protection you get with a credit card, as well as the potential benefits you get in rewards make them far superior to any debit card, ONLY if you know how to control your spending and are able to Pay in full every month.

[CU Tiger]

I just dont think the advantages would outweigh the potential consequences.

We pay cash for every thing except onthly bills which are auto debited or checks.

I have found that there is some sub-conscious emotional tie to cash in my wife (and many other folks) head where when you hand over green you think twice about the transaction and whether you really want/need versus an impulse.

I understand that mathematicallyI lose a small amount, but I have ound that 90% of personal finance is behavior and not mathematics.

[wade moore]

Originally Posted by CU Tiger

I have found that there is some sub-conscious emotional tie to cash in my wife (and many other folks) head where when you hand over green you think twice about the transaction and whether you really want/need versus an impulse.

Interesting theory because I feel I waste FAR more money when I have cash on hand.

[finketr]

i don't have any cards that have an annual fee...

i used to use my discovercard all the time now i hardly use it, preferring my shell citicard that gives 5% off shell gasoline straight up and 1% off of everything else.

[GoldenEagle]

Originally Posted by wade moore

Interesting theory because I feel I waste FAR more money when I have cash on hand.

LSG and I are trying to get into a system where we take out x amount of cash per month and have that as our blow money. If you spend it all at the beginning of the month, then you have no more cash.

I have credit cards but I felt I was slipping into the world of debt. So I am attempting to pay all of them off and then cancel them. I don't think a credit card really offers you more protection than a debit card.

[stevew]

Originally Posted by GoldenEagle

I have credit cards but I felt I was slipping into the world of debt. So I am attempting to pay all of them off and then cancel them. I don't think a credit card really offers you more protection than a debit card.

Like a simple thing like renting a car....if you have a credit card it's easy as pie. Most of them also offer you insurance so you don't have to buy the extra insurance. Most places who rent cars either won't take a debit card, or if they do they also put an extra 200 dollar hold on your account. I rent a car at least 2-3 times a year, and it's worth having a card just for that.

[CU Tiger]

Originally Posted by stevew

Like a simple thing like renting a car....if you have a credit card it's easy as pie. Most of them also offer you insurance so you don't have to buy the extra insurance. Most places who rent cars either won't take a debit card, or if they do they also put an extra 200 dollar hold on your account. I rent a car at least 2-3 times a year, and it's worth having a card just for that.

If your debit card has a Visa or MC logo, tell themit is a credit card.
There is no way to tell the difference, and those transactions are covered by the same V/MC protection plans

[GoldenEagle]

Originally Posted by stevew

Like a simple thing like renting a car....if you have a credit card it's easy as pie. Most of them also offer you insurance so you don't have to buy the extra insurance. Most places who rent cars either won't take a debit card, or if they do they also put an extra 200 dollar hold on your account. I rent a car at least 2-3 times a year, and it's worth having a card just for that.

I know of a couple of places that do not take credit cards, but I think the vast majority do take debit cards. As CU Tiger, they are backed by the Visa network.

[Neuqua]

So I have a question. Say I owe about 3k on one of my credit cards that has a 24%apr.

Can I pay that off with a new credit card offer I get in the mail which has 0% APR for 12 months (12% after that) and then that buys me time to pay off the extra interest?

[wade moore]

Originally Posted by CU Tiger

If your debit card has a Visa or MC logo, tell themit is a credit card.
There is no way to tell the difference, and those transactions are covered by the same V/MC protection plans

Not true.

I ran into this problem where I did not have a credit card. They tried to run my Check Card (with a Visa logo) and it would not work.

[Edward64]

I have a Fidelity Visa.

For every $5K in charges, it allows me to transfer $75 to my Fidelity IRA ... a 1.5% return. Fidelity does not seem to promote this anymore.

I travel alot in my work, so I charge everything (except for car rentals, put that on my AMEX) to the Fidelity card.

[Edward64]

Originally Posted by wade moore

Interesting theory because I feel I waste FAR more money when I have cash on hand.

I'm with you. I try to keep cash at a minimum ...

[gstelmack]

There is actually a long thread on this subject, but probably buried in the archives. My personal experience:

I had two things happen nearly simultaneously. First, we got an offer for the Disney Rewards Visa card, with 1% back in Disney reward dollars. We go to Disney every other year or so, and this seemed perfect for us.

Second, we got a bank statement showing a withdrawal we didn't remember. Turns out that with the Check21 initiative and all this other garbage that makes it cheaper for the banks to do business while making identity theft easier, AT&T had the right to convert our check for a bill payment into an electronic debit. Given that neither my bank nor the FDIC could understand my frustration that no one needed my signature on a check anymore to cash it, and combined with other evidence I had that banks were no longer even LOOKING at checks (including once incident where someone deposited one of my checks with the wrong amount and no one noticed the discrepancy until I got the statement), my wife and I decided to all but stop writing checks. They just became far too insecure.

So we made the following changes to our banking:

1) We only write checks when we HAVE to. This is pretty much daycare, the lawn service, the lady that cuts our family's hair, home repair issues, and the occasional family member / friend money exchange. That is it. We limit as much as possible who gets "permission" to dip into our account electronically, which is what a check is now.

2) We started using electronic billpay with our bank. This way we are pushing money out of our account and into theirs, again rather than giving them permission to pull money out. It also reduces errors; the one or two errors we've had have been our fault for mistyping.

3) We signed up for the Disney Rewards card and use it for everything else. We pay it off in full every month to avoid interest charges, and everything is 1% cheaper. If there is a dispute, it's the bank's money not ours that is at risk (and why I've sent back a debit card the bank sent me and got our ATM card back). And we'll use those rewards on the next trip to Disney. In the last 25 months since our last trip, we have acrrued $850 to spend on this next trip, without changing our spending habits, just how we pay for them.

Our banking is more secure (probably about as secure as it can be in this day and age, especially given that if I'm mugged or pickpocketed or something I'm not out all the cash I no longer carry, just some inconvenience getting the cards replaced) and we are getting a built-in discount on everything. We also upgraded our secondary Visa through our local bank to a rewards card that gives us 1% back; we use that one for online purchases only to reduce our risk, with the assumption being that if one card is compromised, we still have the other to get us through the holes. And we no longer pay $12+ every couple of months to order new checks.

We have been VERY pleased with this approach.

I could go on for days about the whole Check21 thing and the lack of communication from or understanding in the banking industry...

[cthomer5000]

Originally Posted by CU Tiger

I personally don't use credit cards at all, based on a spiritual/philisophical choice, but I wonder how much these rewards could be worth...

I once wondered the same thing and did a detailed breakdown on it here at FOFC.

Originally Posted by gstelmack

There is actually a long thread on this subject, but probably buried in the archives.

Ah, found it.
http://www.operationsports.com/fofc/...ad.php?t=45791

[cthomer5000]

Originally Posted by Neuqua

So I have a question. Say I owe about 3k on one of my credit cards that has a 24%apr.

Can I pay that off with a new credit card offer I get in the mail which has 0% APR for 12 months (12% after that) and then that buys me time to pay off the extra interest?

"Pay off" isn't the term they'd use, but that is the big draw many cards will give you: the ability to transfer existing balance(s) at no interest or lower interest. Or sometimes no interest for a fixed period, etc..

So ultimately the answer to your quesion is yes, assuming you're apporved for a new card with a credit line big enough to handle the entire balance. But even a lot of cards would let you transfer part of another balance. Just shop around for a card specifically selling itself on no-interest balance transfers.

[molson]

Originally Posted by wade moore

Interesting theory because I feel I waste FAR more money when I have cash on hand.

Same here. I find cash easier to blow through because I know they'll be no record of it at the end of the month. Once cash is gone, you never have to think about it again. The subconscious force of knowing that I have to review my bank statement keeps me frugal

[stevew]

Originally Posted by wade moore

Not true.

I ran into this problem where I did not have a credit card. They tried to run my Check Card (with a Visa logo) and it would not work.

Exactly....like i was saying. Mine having a big DEBIT wording across the front isnt helping either.

Check 21 is the devil, which is one of the primary reasons I hate debit cards.

[CU Tiger]

Ive never had the debit card not work as a credit problem. I only have a debit card and always say credit (mainly because I have no clue/have never chosen a PIN# )always works it says debit on the front, but if I am questiond I just tell the cashier I prefer it to be ran as credit so the transaction is guaranteed by VISA.

The cash vs. card spending pattern was actually supported by a national study, but I cant find the article.

The study collected data and showed that for similar purchases cash transactions were in the neighborhood of 10% below credit transactions. (I.E. when comparing a grocery bill, or a TV purchase, the point was to eliminate the bias created by most major purchases being done on plastic these days)

One other side note I have found, is that just by talking to manager and asking you can almost always get a discount by using cash. At minimum I can usually get the 3% back that the credit transaction would cost, but when we bought our washer/dryer set, I was able to talk the appliance manager down $300 just by laying cash in front of him and saying take it our leave it, and this was at Best Buy not some local shop. Now I am not going to haggle over a dozen eggs at Bi-Lo but if its a major purchase (>$250) Im gonna try and talk out a discount, and rarely am I totally unsuccessful.

I think it comes down to different strokes for different folks type scenario. I am not sure that there is a wrong or right. And much of my decision is based on the experiences me and my wife have teaching a financial help class at our church. After seeing how many credit card companies treat people, I just don't choose to do business with people like that.

[cthomer5000]

Originally Posted by CU Tiger

Ive never had the debit card not work as a credit problem. I only have a debit card and always say credit (mainly because I have no clue/have never chosen a PIN# )always works it says debit on the front, but if I am questiond I just tell the cashier I prefer it to be ran as credit so the transaction is guaranteed by VISA.

Yeah, same here. Never had an issue using it as credit (even though it has DEBIT written right on it). I would be willing to bet in any of the above instances reported it was user error on the part of the cashier.

[wade moore]

Originally Posted by CU Tiger

Ive never had the debit card not work as a credit problem. I only have a debit card and always say credit (mainly because I have no clue/have never chosen a PIN# )always works it says debit on the front, but if I am questiond I just tell the cashier I prefer it to be ran as credit so the transaction is guaranteed by VISA.

Rental cars are a completely different ball-game than a normal purchase. It's not just a matter of "tricking" the machine/cashier into believing it is a normal credit card.

It is because it does some sort of check on balance/credit available in order to secure the car that you are renting.

[gottimd]

Originally Posted by CU Tiger

I personally don't use credit cards at all, based on a spiritual/philisophical choice, but I wonder how much these rewards could be worth. Seems all fine and well until a check arrives late or a computer error is made, and you are pounded by late fees and jacked up interests rates...

As for the savings I'll 2nd Ing.
I have an Ing. Orange account that pays 7.5% (though that number has come downto ~5%, I locked it in for 12 months with a 10k deposit)

How easy is it to get to the money you have put away into savings at ING. Reason I ask, is that I have some money in savings that I want to earn more interest on than my bank offers. However, there are times when I need emergency money from that savings which I transfer into my checking account. I soon replenish the savings.

My question is, how hard is it to get to the money? Do I have to jump through a million hoops to get money fast, and is it even possible to get money fast? That is the one reason I haven't opened an account like this. I like the comfort being able to transfer money back and forth with ease, without having to wait for a check to be sent and cleared.

[Ksyrup]

Originally Posted by cthomer5000

"Pay off" isn't the term they'd use, but that is the big draw many cards will give you: the ability to transfer existing balance(s) at no interest or lower interest. Or sometimes no interest for a fixed period, etc..

So ultimately the answer to your quesion is yes, assuming you're apporved for a new card with a credit line big enough to handle the entire balance. But even a lot of cards would let you transfer part of another balance. Just shop around for a card specifically selling itself on no-interest balance transfers.

The tricky part with this is finding a card that won't charge a balance transfer fee. Most of them, in exchange for giving you the no interest intro, will charge 3% or up to $50/75 for the transfer. Look for the cards that give both a 0% intro and have no transfer fee.

Also, if you're looking to transfer something other than a CC balance, there are a few cards that will allow it, but again, you have to find them. That's what I did when I got my law school debt to a manageable amount (around $12K) - I found a card that allowed me to transfer it, got a 0% intro offer from them, and then subsequent transfers to other 0% cards were treated just like CC debt. Worked beautifully, and as I pay it down, rather than making monthly payments that are 75% interest, every cent I pay on my school debt goes to the remaining principal.

[stevew]

Originally Posted by Ksyrup

The tricky part with this is finding a card that won't charge a balance transfer fee. Most of them, in exchange for giving you the no interest intro, will charge 3% or up to $50/75 for the transfer. Look for the cards that give both a 0% intro and have no transfer fee.

Also, if you're looking to transfer something other than a CC balance, there are a few cards that will allow it, but again, you have to find them. That's what I did when I got my law school debt to a manageable amount (around $12K) - I found a card that allowed me to transfer it, got a 0% intro offer from them, and then subsequent transfers to other 0% cards were treated just like CC debt. Worked beautifully, and as I pay it down, rather than making monthly payments that are 75% interest, every cent I pay on my school debt goes to the remaining principal.

Agreed.
Even a 3% transfer fee capped at $75-100 is still better than paying the 24% interest after 2 months though.

[Ksyrup]

True. I'm usually looking at it from the viewpoint of transferring from a 0% to another 0%, so I try to keep the fees/interest payments to zero all the way through.

[Logan]

Originally Posted by gottimd

How easy is it to get to the money you have put away into savings at ING. Reason I ask, is that I have some money in savings that I want to earn more interest on than my bank offers. However, there are times when I need emergency money from that savings which I transfer into my checking account. I soon replenish the savings.

My question is, how hard is it to get to the money? Do I have to jump through a million hoops to get money fast, and is it even possible to get money fast? That is the one reason I haven't opened an account like this. I like the comfort being able to transfer money back and forth with ease, without having to wait for a check to be sent and cleared.

It's not "hard" at all. You're talking about a few clicks on a website with no hoops involved. But it does take a couple days for the money to flow in and out. If this money is truly your emergency money, and you have no other avenues for quick cash (credit cards), I recommend you keep the money in the traditional savings account so you'll feel better. Or, you could figure out how much you'll need for a couple days, and put whatever else is leftover into the high-yield online savings.

[gottimd]

Originally Posted by Logan

It's not "hard" at all. You're talking about a few clicks on a website with no hoops involved. But it does take a couple days for the money to flow in and out. If this money is truly your emergency money, and you have no other avenues for quick cash (credit cards), I recommend you keep the money in the traditional savings account so you'll feel better. Or, you could figure out how much you'll need for a couple days, and put whatever else is leftover into the high-yield online savings.

I do have credit cards, but I don't use them often. I just like having my savings with my checking in the same bank so I can transfer when needed and have that money available to me in a matter of seconds.

I think ING had checking and savings accounts, but I have so much linked into my current checking account (direct deposit, bills, etc) that I don't want to switch. Just bothersome that I know I can get a better interest % on my savings. Maybe I threaten my bank to leave unless they increase the percentage. I mean, how could they not feel coerced into increasing the percentage, especially if it means they will lose .00000000000000000000000000000000000000000000000000000000000000000000000000000000001% of their business!

[CU Tiger]

Originally Posted by wade moore

Rental cars are a completely different ball-game than a normal purchase. It's not just a matter of "tricking" the machine/cashier into believing it is a normal credit card.

It is because it does some sort of check on balance/credit available in order to secure the car that you are renting.

Sorry, I spend ~ 20 weeks a year in a rental car and never had a problem. I do keep a slighty higher balance than many in my checking account but nothing astronomical.
Just returned a car Friday I had all last week. Use Thrifty, Hertz, and occaisonally Alamo
Always use my debit card.

Originally Posted by gottimd

How easy is it to get to the money you have put away into savings at ING. Reason I ask, is that I have some money in savings that I want to earn more interest on than my bank offers. However, there are times when I need emergency money from that savings which I transfer into my checking account. I soon replenish the savings.

My question is, how hard is it to get to the money? Do I have to jump through a million hoops to get money fast, and is it even possible to get money fast? That is the one reason I haven't opened an account like this. I like the comfort being able to transfer money back and forth with ease, without having to wait for a check to be sent and cleared.

You have a couple options here. I have a set-up with the orange account where I have checks for my savings account, so if in a bind I can write a check. There is a charge (like $10/check) but if I was in a bind and needed the cash I could write 1 check to my checking accont and have my cash for $10.

But I have 4 tiers of money.

Tier 1 checking account this includes what is going to be spent plus a little cushion in case something comes up or me and the wife want spontanaity.

Tier 2 $2500 in a savings account with same bank as checking, (brought on by a blown tranny when out of state and I bank with a small local credit union YUCK) which I can transfer to my checking from any internet connection in the world.

Tier 3 Emergency fund- 6 months of bills and expenses always there for loss of job or whatever may come up (this is the ING Orange account)The wife finally understands that new furniture is NOT an emergency

Tier 4 Long term investment, nothing goes here unless it will be untouched for 5 years minimmum. When the Tier 3 grows to a certain point I do move over into this.

It took about 3 years to research, select and set all this up. But it works very well for us now.

[molson]

Originally Posted by Ksyrup

The tricky part with this is finding a card that won't charge a balance transfer fee. Most of them, in exchange for giving you the no interest intro, will charge 3% or up to $50/75 for the transfer. Look for the cards that give both a 0% intro and have no transfer fee.

This is incredibly important because cards that charge the fee will usually put their normal interest rate (20+%) on the fee. And of course, any payment you make applies to your balance that's at 0%, rather than the 25% balance. So that can add up. Along the same line of thinking, NEVER use a balance transfer card to charge anything, you'll be paying high interest on the new purchases until your balance transfer is completely paid off.

Also, check the fine print to make sure there's no "minimum monthly purchase" necessary to keep the 0% rate. Once again, you'll get screwed.

Amex blue has a "life of balance" transfer rate of about 4.5%, with no fee, which might be a safer bet.

[Ksyrup]

Yeah, another variation is the card that gives you extended months at 0% if you make X number of purchases - they give you 9-12 months, but you can get up to 15 months at 0% if you make, say, 3 purchases in the first 3 months. And usually all you see in the ad is the best-case scenario (15 months from now). But the payments you make are applied to the new purchases first, and usually you don't get the 0% on new purchases, so you end up defeating the entire purpose for the card in the first place.

[molson]

Originally Posted by CU Tiger

It took about 3 years to research, select and set all this up. But it works very well for us now.

I can see why you teach a financial help class, that's pretty impressive. I have one tier of money, "use every penny to pare down my massive student loans".

[Ksyrup]

That tier system looks like a good idea. I want to get there...eventually.

[CU Tiger]

Originally Posted by Ksyrup

That tier system looks like a good idea. I want to get there...eventually.

An excellent starting point is the book "The Total Money Makeover".
Its by a guy named Dave ramsey who also hosts a radio show. (national and Xm and Sirius)
Fundamentally I agree with him, although like anything I suppose, we have a few variations in appliaction.