Shoppers Beware … Your Mailbox is Stalking You

Shoppers Beware …

Your Mailbox is Stalking You

August is almost gone and soon your mail boxes—the snail mail, the email, and your text messages—will be full of ads and promos touting Holiday sales. For many of us that means pulling out a credit card, whether it be American Express, Visa, Master Card, your bank's credit card or a specialized store’s. America’s favorite pass time of exploring and shopping is off!

Credit cards  can be good, bad or ugly …

 Let's look at the good … and there is a good side to them.

There are situations where you need a credit card, including emergencies. You know that they can happen, and at any time.

If you have a credit card, you typically carry less cash.

Some credit cards have cash back rewards. Others have "points" that may be used toward purchases or to lower your bill. 

If your credit card is stolen or someone has obtained your number, credit card companies can easily reverse the charge. It’s smart to have a list somewhere that you can access easily with the name of your credit cards; the account number including expiration date and code; and customer service phone number—have you ever noticed how small they are on your card, almost unreadable, needing a magnifying glass! Make sure you update replacement and renewed cards … there is always a change on the expiration date and the code.

If you are a traveler, you need a credit card to rent a car or book a reservation. For Hotels, you need a credit  card and to book a flight. Cash is not king here!

The Bad

It's easy to run up a large credit card car balance, many times unconsciously.
It's tempting to buy more and pay more for an item when using a credit card. Let’s face it—shopping with a credit card in hand is almost too simple.

It’s not uncommon to be lured in with a “you only have to pay a small fraction of the balance” becomes an entice to spend more. Gulp.

The Ugly 

The more credit cards you have, the easier it is to get another and another and another. Another big gulp. And here’s the truth: credit card companies sell their mailing  lists.       

When you have a credit card it become easy to justify a purchase.

It’s on sale. You've been wanting that particular item for a long time. Or, you need to get a gift for someone.

Fraud Alert

You will receive a lot offers for credit cards in the mail. It’s a smart move to have a shredder—you can get one for as little as $30. Shred your junk credit card offers into little bitty pieces that are perfect for garbage dumping. Do not simply toss the envelop into your trash. Why? It has your name on it—the dumpster trash thieves will love you!

Patricia Lane Williams is a retired CPA and has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It. Her website is www.PatWilliamsAuthor.com.

Sometimes a Word Doesn’t Mean What You Think it Does

Sometimes a Word Doesn’t Mean

There are three essential things you need to know about money:

1. Words have power. They may convey emotions that were created when you heard lines like:  Mom always loved you best We the people …

2. Words change. The meanings … and sometimes the spelling! A word can be used one way one day and totally change the next.

3. Words can, and will be used differently, by different people—cultures, genders, and ages. Every profession, law and political organization, businesses large and small, use some of the same terms to talk about money.

Since I am  talking about money today … and just to you … let’s consider two words pertaining to your money: debits and credits.

Your Bank Account

You and your bank look at your bank account from different viewpoints. Let’s say you deposit a $100.  When you make that deposit the bank says it has “credited” your account. When you write a check the bank says it has debited your account.

Your Credit Card 

Let’s say you spend $85 on groceries using your credit card. Your credit card will reflect a debit and in turn creates an asset for the credit card company—a credit to it. In turn, the credit card company must now pay the vendor who the money was collected for BUT, the credit card company gets paid a percentage of the amount collect as its “fee” … a net credit to it.

Remember this about credit cards: For credit card companies, debits increase their assets via credit card processing fees—a HUGE credit that collectively amounts in excess of 160 BILLION dollars a year. That is an OMG!

Merchants view processing credit cards as part of the business. You many have noticed that many are not charging you an “extra amount”—either set or a percentage of your purchase to cover the cost.

If you want to help a merchant out … write a check or pay cash. To HELP YOU OUT, always pay your credit card balance off within 30 days to avoid additional interest charges.

Patricia Lane Williams, CPA has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It.
Her website is www.PatWilliamsAuthor.com.

Don’t Let Your Credit Cards Run Away from You

Did you know that using a credit card can lead to spending more money than you can imagine … or even thought? You have discovered the ultimate money pit.

When you use a credit card and don’t pay off the balance each month you can easily triple the debt you started out with … did you know that … or realize it when you did the initial buy on time? 

Here’s what happens …  you will pay interest on interest on interest after each billing cycle  … until you manage to pay the debt off—many times years later. If you look at a credit card statement, routinely, there is a tiny boxed notice that says: if you pay in one year,  you full payment will be ____. If you pay over seven years, it will be ____.

Whatever the amount is, I promise you, it will be HUGE in comparison to what the original amount was!

If you buy on time, do you and your bank account a favor. Commit to one year max for payoff when using your credit cards. And stash the extra interest you would have been charges into a savings account—or redirect it to pay off another credit card.

   Patricia Lane Williams, CPA has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It.
Her website is www.PatWilliamsAuthor.com.