Comments on: Basic Personal Finance: Know How Your Accounts Work http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/ personal finance that makes cents Tue, 07 Oct 2008 23:08:11 +0000 http://wordpress.org/?v=2.5.1 By: Ten Money-Saving Vacation and Travel Tips ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-112244 Ten Money-Saving Vacation and Travel Tips ? Get Rich Slowly Tue, 15 Jan 2008 09:00:31 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-112244 [...] your money. Know which money source is best for each situation. I didn’t understand this, and was dinged with unnecessary fees. For example, you should know that Visa charges a 1% overseas [...] [...] your money. Know which money source is best for each situation. I didn’t understand this, and was dinged with unnecessary fees. For example, you should know that Visa charges a 1% overseas [...]

]]> By: The Best of Get Rich Slowly: November 2007 ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-107168 The Best of Get Rich Slowly: November 2007 ? Get Rich Slowly Sun, 02 Dec 2007 17:31:24 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-107168 [...] November 1st: Basic personal finance: Know how your accounts work [...] [...] November 1st: Basic personal finance: Know how your accounts work [...]

]]> By: Blog Review: Get Rich Slowly at Financial planning tips and Roth IRA conversion planning for those in their 30s and 40s http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-104548 Blog Review: Get Rich Slowly at Financial planning tips and Roth IRA conversion planning for those in their 30s and 40s Mon, 12 Nov 2007 20:58:13 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-104548 [...] Basic Personal Finance: Know How Your Accounts Work - most people, including me, don’t look at the small print. Many months ago I was dinged with finance charges on my credit card for the same reasons as J.D. Get to know the ins and outs of the accounts you use most often. I don’t want to say anything specific about the purchase of WM he talks about, but diversifying risk via ETF’s is a smart way to invest for the future and limit your exposure to individual stock risk. [...] [...] Basic Personal Finance: Know How Your Accounts Work - most people, including me, don’t look at the small print. Many months ago I was dinged with finance charges on my credit card for the same reasons as J.D. Get to know the ins and outs of the accounts you use most often. I don’t want to say anything specific about the purchase of WM he talks about, but diversifying risk via ETF’s is a smart way to invest for the future and limit your exposure to individual stock risk. [...]

]]> By: » Weekly Roundup - Better Comments Edition @ fivecentnickel.com http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103604 » Weekly Roundup - Better Comments Edition @ fivecentnickel.com Mon, 05 Nov 2007 02:36:51 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103604 [...] J.D. advised readers to know how their accounts work. [...] [...] J.D. advised readers to know how their accounts work. [...]

]]> By: kitty http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103586 kitty Sun, 04 Nov 2007 22:55:16 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103586 "How many people working full-time have the time or inclination to scrutinize their accounts to uncover fees?" I think it is a pretty good idea to scrutinize all your bills and statements, be it a credit card bill, a checking account statement, utility bill or a water bill. There could be fraud, there could be mistakes, somebody might've signed you up for something like this "rewards" thing mentioned recently. The credit card bill is only a couple of pages - how difficult it is to check it? I once got a water bill for $2000. I called the town and asked if they had thought I put a large fountain inside my living room and no, I don't have a pool. Turned out, they read the wrong meter or something like it, it was off by a huge number. "I make my payments online, but I was busy and didn’t find time to make the payment until Friday evening." I use automatic payment. This way I don't need to worry about it or remember anything except for having enough money on my checking. "We aren’t lawyers, we can’t read all these contracts - it’s better to just not deal with them and not rationalize the ‘debt is a tool’ lie. " It is not a lie. Plenty of rich people use it as a tool. So you'll make this mistake once, you look at your bill and find it. You'd know not to do it again. Half a month interest on not-so-big cash advance is likely to be smaller than what you could get in cashbacks, not to mention that you can often get it waived "just this once" if you call. Of course, if you don't know without reading a contract that you should pay your balances in full every month or you'll pay high interest, you should avoid credit cards. I'd never travel with the debit card to my main checking account - too risky. A credit card for where they take it plus a debit card to a separate account that only has a limited amount of money - no more than I need in cash for the trip. Except for trips to cash-only places -- then it is just crisp new hundred dollar bills and watch my money belt/handbag as a hauk. “How many people working full-time have the time or inclination to scrutinize their accounts to uncover fees?”
I think it is a pretty good idea to scrutinize all your bills and statements, be it a credit card bill, a checking account statement, utility bill or a water bill. There could be fraud, there could be mistakes, somebody might’ve signed you up for something like this “rewards” thing mentioned recently. The credit card bill is only a couple of pages - how difficult it is to check it? I once got a water bill for $2000. I called the town and asked if they had thought I put a large fountain inside my living room and no, I don’t have a pool. Turned out, they read the wrong meter or something like it, it was off by a huge number.

“I make my payments online, but I was busy and didn’t find time to make the payment until Friday evening.”
I use automatic payment. This way I don’t need to worry about it or remember anything except for having enough money on my checking.

“We aren’t lawyers, we can’t read all these contracts - it’s better to just not deal with them and not rationalize the ‘debt is a tool’ lie. ”
It is not a lie. Plenty of rich people use it as a tool. So you’ll make this mistake once, you look at your bill and find it. You’d know not to do it again. Half a month interest on not-so-big cash advance is likely to be smaller than what you could get in cashbacks, not to mention that you can often get it waived “just this once” if you call. Of course, if you don’t know without reading a contract that you should pay your balances in full every month or you’ll pay high interest, you should avoid credit cards.

I’d never travel with the debit card to my main checking account - too risky. A credit card for where they take it plus a debit card to a separate account that only has a limited amount of money - no more than I need in cash for the trip. Except for trips to cash-only places — then it is just crisp new hundred dollar bills and watch my money belt/handbag as a hauk.

]]> By: Tim http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103536 Tim Sun, 04 Nov 2007 00:14:39 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103536 You withdraw that $1.06 balance in their favor back off your card. A while back, I carried a balance of $0.48 in Citibank's (Canada) favor for three or four months, when finally I received a bill with a $0.00 balance. The statement showed a charge to my account in the amount of $0.48, with a description of "low balance write-off", effectively stating "we're going to rip off your $0.48 so that we don't have to keep sending you a statement". You withdraw that $1.06 balance in their favor back off your card.

A while back, I carried a balance of $0.48 in Citibank’s (Canada) favor for three or four months, when finally I received a bill with a $0.00 balance. The statement showed a charge to my account in the amount of $0.48, with a description of “low balance write-off”, effectively stating “we’re going to rip off your $0.48 so that we don’t have to keep sending you a statement”.

]]> By: Sandy http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103488 Sandy Sat, 03 Nov 2007 00:35:01 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103488 Like Debbie, I was having similar problems and frustrations with the amount that was being withheld by my mortgage company in my escrow account as well. Here's how I was able to solve it and this option might be available to her and others as well. I called them and asked if I could be nonescrowed! Their rule for that was after a year I could and it had been over a year, so that's what I chose to do. So they sent me a check for the amount in the escrow fund and I put it in my savings account. Next I called the tax collector's office re my property taxes to tell them to send the next bill to me and not to my mortgage company and they complied. I called my homeowner's insurance company too and notified them to send me the bill, and they did. I divided the property taxes by 12 (months) and the homeowners and put that amount into a high-interest earning savings account and when they become due, twice a year, I pay them. So I'm collecting interest now, not the mortgage co. Just thought I would pass this info along to others you might not know about it. See if your mortgage company will allow you to be nonescrowed. Like Debbie, I was having similar problems and frustrations with the amount that was being withheld by my mortgage company in my escrow account as well. Here’s how I was able to solve it and this option might be available to her and others as well. I called them and asked if I could be nonescrowed! Their rule for that was after a year I could and it had been over a year, so that’s what I chose to do. So they sent me a check for the amount in the escrow fund and I put it in my savings account. Next I called the tax collector’s office re my property taxes to tell them to send the next bill to me and not to my mortgage company and they complied. I called my homeowner’s insurance company too and notified them to send me the bill, and they did. I divided the property taxes by 12 (months) and the homeowners and put that amount into a high-interest earning savings account and when they become due, twice a year, I pay them. So I’m collecting interest now, not the mortgage co. Just thought I would pass this info along to others you might not know about it. See if your mortgage company will allow you to be nonescrowed.

]]> By: wewally http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103484 wewally Fri, 02 Nov 2007 23:02:52 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103484 We have started overpaying our credit card by 5 or 10 dollars when we come home after vacations. That way it zeroes out the next month on the two month balence trick they play. We have started overpaying our credit card by 5 or 10 dollars when we come home after vacations. That way it zeroes out the next month on the two month balence trick they play.

]]> By: jtimberman http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103443 jtimberman Fri, 02 Nov 2007 15:14:46 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103443 These little hidden charges you've encountered JD remind me of just one reason I will never have a credit card again. Nevermind that having money means I don't need to borrow money ;-). These little hidden charges you’ve encountered JD remind me of just one reason I will never have a credit card again.

Nevermind that having money means I don’t need to borrow money ;-).

]]> By: Debbie M http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103442 Debbie M Fri, 02 Nov 2007 15:14:11 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103442 It sounds like your credit card was using the evil way to calculate interest. I forget what it's called, but they calculate interest on your average balance over the last TWO months instead of the last one month. The fine print will say something about a two-month cycle or 60-day cycle or something. My most flummoxing experiences had to do with my mortgage. First, my mortgage company started charging me some huge amount for some kind of required wind damage insurance. I felt sure that wind damage was one of the things that was covered by my homeowners insurance (which I did read through the first year). In the end, I think my homeowners insurance company called my mortgage company and convinced them of this. The second thing happens when you have an escrow account. This is where the mortgage company collects money in advance so that when your insurance bill and tax bill come due, they can pay it out of this fund. They don't actually know how much your taxes or insurance are going to be, so they have to guess. You can imagine that if they are allowed to guess whatever they want, they will guess a huge number and have free use of lots of your money for a long time. So the law says (at least where I am) that they a) have to assume it will cost the same this year as last year (even though of course it will cost more), and b) they are allowed to pad the account by a certain amount (which for me has turned out to be not enough usually to make up the difference). So let's say that in year 1 your taxes are $2400 and your insurance is $1200 for a total of $3600. So for year 2, they pull out $300 per month, plus $20 per month for the cushion. But let's say the second year, taxes turned out to be $3000 and insurance turned out to be $1260 for a total of $4260. They should have been collecting $355 per month, not just $320. So you own them that extra $35 per month from last year, which you can pay all at once or over the next year. (Duh, over the next year). In addition, they are now using higher numbers to decide how much to take for next year's taxes. They will be collecting $355 per month for that, plus, say, $25 for the cushion. And when you add the extra $35 you owe them for last year, your new escrow payment is $415, which is much huger than the $320 charged the year before! In the following years, the increase isn't so crazy because although you still add money for the increase and you still add money to pay off what you owe from last year, you stop paying money for what you owed from the year before that. It took me quite a while to figure that out! It sounds like your credit card was using the evil way to calculate interest. I forget what it’s called, but they calculate interest on your average balance over the last TWO months instead of the last one month. The fine print will say something about a two-month cycle or 60-day cycle or something.

My most flummoxing experiences had to do with my mortgage. First, my mortgage company started charging me some huge amount for some kind of required wind damage insurance. I felt sure that wind damage was one of the things that was covered by my homeowners insurance (which I did read through the first year). In the end, I think my homeowners insurance company called my mortgage company and convinced them of this.

The second thing happens when you have an escrow account. This is where the mortgage company collects money in advance so that when your insurance bill and tax bill come due, they can pay it out of this fund.

They don’t actually know how much your taxes or insurance are going to be, so they have to guess. You can imagine that if they are allowed to guess whatever they want, they will guess a huge number and have free use of lots of your money for a long time. So the law says (at least where I am) that they a) have to assume it will cost the same this year as last year (even though of course it will cost more), and b) they are allowed to pad the account by a certain amount (which for me has turned out to be not enough usually to make up the difference).

So let’s say that in year 1 your taxes are $2400 and your insurance is $1200 for a total of $3600. So for year 2, they pull out $300 per month, plus $20 per month for the cushion.

But let’s say the second year, taxes turned out to be $3000 and insurance turned out to be $1260 for a total of $4260. They should have been collecting $355 per month, not just $320. So you own them that extra $35 per month from last year, which you can pay all at once or over the next year. (Duh, over the next year).

In addition, they are now using higher numbers to decide how much to take for next year’s taxes. They will be collecting $355 per month for that, plus, say, $25 for the cushion. And when you add the extra $35 you owe them for last year, your new escrow payment is $415, which is much huger than the $320 charged the year before!

In the following years, the increase isn’t so crazy because although you still add money for the increase and you still add money to pay off what you owe from last year, you stop paying money for what you owed from the year before that. It took me quite a while to figure that out!

]]> By: Allen http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103436 Allen Fri, 02 Nov 2007 13:42:07 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103436 Not to come off as a TOTAL Dave Ramsey zealot; but this is obviously why he says "if you play with snakes you WILL get bitten". You got duped by your credit card and it is because that's what they do! And you were trying to be careful! We aren't lawyers, we can't read all these contracts - it's better to just not deal with them and not rationalize the 'debt is a tool' lie. (OK It's not a lie but you know what I mean) Not to come off as a TOTAL Dave Ramsey zealot; but this is obviously why he says “if you play with snakes you WILL get bitten”.

You got duped by your credit card and it is because that’s what they do! And you were trying to be careful!

We aren’t lawyers, we can’t read all these contracts - it’s better to just not deal with them and not rationalize the ‘debt is a tool’ lie. (OK It’s not a lie but you know what I mean)

]]> By: Free Money Finance http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103429 Free Money Finance Fri, 02 Nov 2007 10:19:32 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103429 <strong>Star Money Articles for the Week of October 29...</strong> Here are some recent interesting posts from the MoneyBlogNetwork and beyond: No Credit Needed suggests keeping things simple. Get Rich Slowly advises to know how your accounts work. Consumerism Commentary says NYC transportation costs are going up. All... Star Money Articles for the Week of October 29…

Here are some recent interesting posts from the MoneyBlogNetwork and beyond: No Credit Needed suggests keeping things simple. Get Rich Slowly advises to know how your accounts work. Consumerism Commentary says NYC transportation costs are going up. All…

]]> By: Mrs. Micah http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103413 Mrs. Micah Fri, 02 Nov 2007 01:07:37 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103413 I have to call Wachovia tomorrow and find out why they apparently charged us twice for our checks. It's $18, so it's worth checking up on. I have to call Wachovia tomorrow and find out why they apparently charged us twice for our checks. It’s $18, so it’s worth checking up on.

]]> By: Ross http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103409 Ross Thu, 01 Nov 2007 23:55:04 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103409 @JD next time call the credit card company and ask them to remove those straggling charges. Anything under $5 or $10 is fair game for you to say: "Hey stop this!". I did this just last month and Chase dropped a remaining $3 or $4 charge after I had sent in a payment that should have brought the card down to zero from a ~$1500 balance. If the company can't understand that those $5 charges aren't worth losing you as a customer, then you should cancel the card. The 5 minutes on the phone was worth the time since I was at home and could do other things. @JD next time call the credit card company and ask them to remove those straggling charges. Anything under $5 or $10 is fair game for you to say: “Hey stop this!”. I did this just last month and Chase dropped a remaining $3 or $4 charge after I had sent in a payment that should have brought the card down to zero from a ~$1500 balance.

If the company can’t understand that those $5 charges aren’t worth losing you as a customer, then you should cancel the card.

The 5 minutes on the phone was worth the time since I was at home and could do other things.

]]> By: Sandy http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103369 Sandy Thu, 01 Nov 2007 18:14:35 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103369 Thanks for the good laugh Dave! Score a point for you! Thanks for the good laugh Dave! Score a point for you!

]]> By: Steve http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103368 Steve Thu, 01 Nov 2007 18:14:26 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103368 Here's one that just got me. I've used a Bank of America credit card for years, mainly for convenience, but I've always paid the balance in full every month. The due date on a recent bill fell on a Sunday. I make my payments online, but I was busy and didn't find time to make the payment until Friday evening. The BoA website indicated that since it was past 3pm EST, the payment would be made on Monday. No sweat, I thought. I would just go to a BoA branch on Saturday and make the payment on time in person. After I made the payment, the receipt showed Monday's date rather than Saturday's! I spoke to the branch manager and he explained that payments are only accepted on business days, so whenever a payment date falls on a weekend, be sure to get it in by 3pm Friday. This is really sly and cheap, since it effectively knocks off 2 days from the grace period when the due date falls on a Sunday. The manager informed me that BoA will usually wave one late payment fee per year. After I got my bill, I called up BoA, explained that I was going on 4 years without a late payment, and got the crazy $40 late fee removed. $40.. wow, I didn't realize how much they take from you when you're late... Here’s one that just got me. I’ve used a Bank of America credit card for years, mainly for convenience, but I’ve always paid the balance in full every month. The due date on a recent bill fell on a Sunday. I make my payments online, but I was busy and didn’t find time to make the payment until Friday evening. The BoA website indicated that since it was past 3pm EST, the payment would be made on Monday. No sweat, I thought. I would just go to a BoA branch on Saturday and make the payment on time in person. After I made the payment, the receipt showed Monday’s date rather than Saturday’s! I spoke to the branch manager and he explained that payments are only accepted on business days, so whenever a payment date falls on a weekend, be sure to get it in by 3pm Friday. This is really sly and cheap, since it effectively knocks off 2 days from the grace period when the due date falls on a Sunday. The manager informed me that BoA will usually wave one late payment fee per year. After I got my bill, I called up BoA, explained that I was going on 4 years without a late payment, and got the crazy $40 late fee removed. $40.. wow, I didn’t realize how much they take from you when you’re late…

]]> By: Dave http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103364 Dave Thu, 01 Nov 2007 17:51:09 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103364 Interesting tidbit about having a credit owed on your card. I've deliberatley done this in the past for a few cards that upset me. I'd pay yhe balance due plus one penny. This was for someplace that really annoyed me. My intent was to never use that card again. They would mail me a statement for months with messages saying things like "You are carrying a balance - no payment needed!". They'd also remind me that I could take care of this "problem" by charging something. eventually they would offer to cut me a check for the balance - although the last time I did this, after about 6 months the company simply zeroed out the balance, saying they wouldn't cut a check for amounts beneath some minimum - makes me think I wasn't the only one doing this. Even if I lost the penny, it was worth it to me. Once they stopped playing the game, I simply closed the account and never patronised them again. Interesting tidbit about having a credit owed on your card. I’ve deliberatley done this in the past for a few cards that upset me. I’d pay yhe balance due plus one penny. This was for someplace that really annoyed me. My intent was to never use that card again. They would mail me a statement for months with messages saying things like “You are carrying a balance - no payment needed!”. They’d also remind me that I could take care of this “problem” by charging something. eventually they would offer to cut me a check for the balance - although the last time I did this, after about 6 months the company simply zeroed out the balance, saying they wouldn’t cut a check for amounts beneath some minimum - makes me think I wasn’t the only one doing this. Even if I lost the penny, it was worth it to me. Once they stopped playing the game, I simply closed the account and never patronised them again.

]]> By: Kathleen http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103363 Kathleen Thu, 01 Nov 2007 17:43:30 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103363 Thanks for sharing your experiences. It's reassuring to see other people making mistakes - it means I don't beat myself up about my mistakes quite so much! Kx Thanks for sharing your experiences. It’s reassuring to see other people making mistakes - it means I don’t beat myself up about my mistakes quite so much!

Kx

]]> By: Sandy http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103362 Sandy Thu, 01 Nov 2007 17:28:58 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103362 I paid off my credit card & this is an example why I will Never use it again! Yes I have an emergency fund set in place now. They are in the business to make $ and boy do they ever! How many people working full-time have the time or inclination to scrutinize their accounts to uncover fees? The credit card companies know that. I wish I could be in the business of issuing people credit cards! Look at the high interest rate they can get away with that others can't who lend money? (Mortgage loans, CD's etc.) And all those fees, late charges, etc. It's enough to take away my peace of mind, so yes, I will never carry a outstanding credit card balance again. I paid off my credit card & this is an example why I will Never use it again! Yes I have an emergency fund set in place now. They are in the business to make $ and boy do they ever! How many people working full-time have the time or inclination to scrutinize their accounts to uncover fees? The credit card companies know that. I wish I could be in the business of issuing people credit cards! Look at the high interest rate they can get away with that others can’t who lend money? (Mortgage loans, CD’s etc.) And all those fees, late charges, etc. It’s enough to take away my peace of mind, so yes, I will never carry a outstanding credit card balance again.

]]> By: Rob http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103361 Rob Thu, 01 Nov 2007 17:20:31 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103361 JD: I got dinged the same way with my WaMu credit card. It was really annoying and complicated to figure out. When I finally did figure it out, I canceled the card - there are too many cards out there that don't trick me into fees like that. Thanks. Rob JD:

I got dinged the same way with my WaMu credit card. It was really annoying and complicated to figure out.

When I finally did figure it out, I canceled the card - there are too many cards out there that don’t trick me into fees like that.

Thanks.

Rob

]]> By: Raj http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103358 Raj Thu, 01 Nov 2007 15:46:25 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103358 Good pick on WaMu. US bank stocks are tumbling due to the credit mess, and they're going start getting gobbled up by Canadian, European and Asian investors (ie premium on the buyout). Good pick on WaMu. US bank stocks are tumbling due to the credit mess, and they’re going start getting gobbled up by Canadian, European and Asian investors (ie premium on the buyout).

]]> By: TosaJen http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103357 TosaJen Thu, 01 Nov 2007 15:43:20 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103357 Yeah, when those kinds of surprise charges show up, I usually make enough noise about canceling the card that the charges are removed "just this once". I don't know if it's because I ask directly for the charges to be removed, or they can tell that my credit is good enough that I can take my business elsewhere. Yeah, when those kinds of surprise charges show up, I usually make enough noise about canceling the card that the charges are removed “just this once”. I don’t know if it’s because I ask directly for the charges to be removed, or they can tell that my credit is good enough that I can take my business elsewhere.

]]> By: Corey http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103354 Corey Thu, 01 Nov 2007 15:19:17 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103354 Makes sense. So it sounds like you can write-off your fees and interest charges that were expenses in a research experiment you were conducting for your blogging business. (Just kidding!) Best of luck, Corey Makes sense. So it sounds like you can write-off your fees and interest charges that were expenses in a research experiment you were conducting for your blogging business. (Just kidding!) Best of luck, Corey

]]> By: J.D. http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103352 J.D. Thu, 01 Nov 2007 14:57:39 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103352 Corey, I was actually making a conscious choice. I used both. I wanted to compare fees on the debit card and the credit card. It's true that the Capital One card doesn't charge as many fees, but it doesn't mean anything from the cash advance perspective since they begin charging interest immediately upon withdrawal. Now I know for the future that my best choice is my credit union's debit card for foreign ATMs, but my credit card for actual purchases. Corey, I was actually making a conscious choice. I used both. I wanted to compare fees on the debit card and the credit card. It’s true that the Capital One card doesn’t charge as many fees, but it doesn’t mean anything from the cash advance perspective since they begin charging interest immediately upon withdrawal. Now I know for the future that my best choice is my credit union’s debit card for foreign ATMs, but my credit card for actual purchases.

]]> By: Corey http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103348 Corey Thu, 01 Nov 2007 14:49:20 +0000 http://www.getrichslowly.org/blog/2007/11/01/basic-personal-finance-know-how-your-accounts-work/#comment-103348 JD, I'm sorry to hear you were flummoxed by your credit card; I imagine it was a frustrating setback. However, I am curious to understand your thought process when you were abroad that led you to use your credit card for a cash advance instead of a debit card as you normally would at an ATM back in the States. Credit cards only stay free for purchases, and I wouldn't fault Capital One for operating the same as any other credit card I've ever heard of. And don't forget to shred those forsaken access checks! :) JD, I’m sorry to hear you were flummoxed by your credit card; I imagine it was a frustrating setback. However, I am curious to understand your thought process when you were abroad that led you to use your credit card for a cash advance instead of a debit card as you normally would at an ATM back in the States. Credit cards only stay free for purchases, and I wouldn’t fault Capital One for operating the same as any other credit card I’ve ever heard of. And don’t forget to shred those forsaken access checks! :)

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