Beware Of Easy Money

By
Real Estate Agent with Keller Williams Realty 0575737

Credit TroubleA lot of successful business people think the use of credit cards is something far back in their rear view mirror like after their college days. They are financially comfortable now. But whoa Nelly. Don't think so fast like that. Things in life change in a flash. Jobs are lost, you wrack up family medical bills with your co-pay or all of it negotiated with a hospital with no insurance coverage, your business goes south, divorces happen and you divide everything, you want to start a new business franchise and you need some immediate cash on hand. Life continues to evolve. And you THINK how about putting a little of what you need on.... A CREDIT CARD. Some posts have been written on financial common sense and I wanted to issue a clarion call to

         Beware Of Easy Money

The banks make it so CONVENIENT for you too. Offers of new cards arrive in the mail, bonus points, cash back rebates, and even CHECKS to write to whomever with that large $18,000 credit limit they gave you cause YOU are so credit worthy. There is no free lunch. READ the fine print. They do try to bury that from you. 3% to 4% Cash Advance or Balance transfer fees even if an initial 0% for 6 months payments. Late fees to $30 a month. And the worst, miss a payment BY A DAY and your monthly interest rate goes to 29.9%!!!! WOW.

 

One good thing they do with this "easy money" is they say if you keep making the minimum payment it will take you like 48 years to pay it off, but if you pay the RECOMMENDED rather than the minimum payment you can pay it off in 36 months, something a little more reasonable.

Be VERY careful with credit cards and remember the DEBTOR is the SLAVE to the LENDER. It ALWAYS has been that way. Freedom is a very good thing.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Texas Denton County Flower Mound
Groups:
Credit Card Revolt
Dave Ramsey FANS
Diary of a Realtor
Keller Williams 'Rainers
Realtors®
Tags:
financial responsibility

Comments 23 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
360,436
Paula Hathaway, REALTOR, Sr. LBA,
...Finding Your Place In The sun!
Douglas Elliman Real Estate

Gary: Well said! I think that unless we are wise about knowing how indebtedness really works, we as a culture will fall victim to the credit scam again! There should be an effort on the part of educators to teach this as a basic part of life---we all are faced with a choice about credit at some point in our lives--it could be likened to marriage by the way it lasts into the forseeable future! And, by the way, our President and his cabinet cuold have benefited from a course in basic economics before they got hired to rule this country!

April 03, 2011 12:59 PM
Rainmaker
346,241
Pam Miller
Broker Associate - Pearland/Friendswood
Realty Associates

Gary, this is great post for young and not-so-young.  Credit card debt is a terrible trap! 

April 03, 2011 01:11 PM
Rainmaker
1,735,019
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.
WHISPERING PINES REALTY

Gary, if it was truely easy money, you wouldn't have to be told about it.  Everyone would already know how.

April 03, 2011 01:54 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

SaraMana Properties: You are welcome.

Wanda: Good luck with the debt free, and the pay later everyone seems to forget.

Peggy: I wonder what happened to usury laws maxing at like 21% too!

Paula: Smile, our country is in PERMANENT debt unfortunately with no end in sight with that budget.

Pam: The word 'trap' is an excellent choice describing what happens to so many people.

William: Easy money is deceptively COSTLY money. Anything too easy you have to raise your eyebrow toward.

April 03, 2011 02:12 PM
Rainmaker
856,337
Steve Loynd
800-926-5653, White Mountains NH
Alpine Lakes Real Estate Inc.,

I receive half a dozen credit card offers a week, they never make it out of the post office. But what really scares me is my 17 year old son is starting to get these come -on offers.

April 03, 2011 02:14 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Steve: Keep that trash can nearby and have your 17 yr old cozy up to the trash can too. The younger people really get sucked into that easy money with like wanting to get iPods, iPads, and big screen TVs.

April 03, 2011 02:30 PM
Rainmaker
343,967
Sondra Meyer
Colorado Horse Property Specialist
Star View Real Estate

Excellent advise.  Bettter yet....stop using credit cards and pay them off.  Pay cash.   Nothing good comes from credit card debt.   

April 03, 2011 02:30 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Sondra: Or what was like step one from the Dave Ramsey or Suze Orman folks? Cut the credit cards up! Can you imagine paying 29.9% annual interest? Ludicrous, yet many young people don't even understand math.

April 03, 2011 02:36 PM
Ambassador
514,277
Cindy Marchant
"Cindy in Indy" , Realtor, Fishers Real Estate
Keller Williams Indy NE 317-290-7775 www.marchantteam.com

Good advice Gary...I watch numerous agents spend money like crazy last year from March - June of 10 and then their business went cold.  The Hummer isn't worth as much three weeks after you bought it...it was sad....

April 03, 2011 03:25 PM
Ambassador
766,266
Hannah Williams
Expertise in NE Philadelphia & Bucks County
Re/Max Eastern inc.

Gary..You are such a WISE MAN

HelpfulHannah

April 03, 2011 05:20 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Cindy: How soon that Hummer drops in value driving it off the lot too. I love your Butler Bulldogs spirit!!!

Hannah: Ha Ha..... call me Obe Wan Kenobe. Right LOL.

April 03, 2011 06:13 PM
Ambassador
1,482,357
Tammy Lankford
Your Lake Sinclair Expert (706-485-9668)
Lane Realty

My daughter got sucked in at college.  She knew better.  Unlike Steve I don't throw my offers away in the post office, I bring them home and throw them away in the fireplace.  Once upon a time, I traveled down that road.  No desire to go back.

April 03, 2011 07:26 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Tammy: That's a real good point you make there of been there done that, not going back. When you have felt that monthly payment pressure of credit card debt you want to steer clear of it. I did like Steve's idea too of having the trash can nearby with the incoming mail.

April 03, 2011 07:35 PM
Rainmaker
217,065
Patricia Beck
Colorado Springs Realty
RE/MAX Properties, Inc., GRI, CDPE

Credit is dangerous!  If you don't have the money to buy it, don't charge it.  Great advice Gary, especially in with all of the uncertainty today.

April 03, 2011 09:21 PM
Rainmaker
1,591,339
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Good evening Gary,

Freedom is a good thing. There is nothing worse than getting caught in the credit squeeze. I see so many ads buy now pay next year..not a good idea!! Great advice for us all to keep in mind when we get bombarded with Easy Money!!

April 03, 2011 09:48 PM
Rainmaker
659,349
Sharon Paxson
Newport Beach Real Estate - HOM Sotheby's Int'l Re
HÔM Sotheby's International Realty, BRE License 01501912

HI Gary - great post, and it is correct about how these credit card companies attempt to rope you in! Cash advances typically have the highest interest rate, and at the end of the day, who can afford to pay that amount in interest charges. It can be an incredibly dangerous trap!

April 04, 2011 12:04 PM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Patricia Beck: A healthy understanding of how credit can get you in a trap is a very good thing to know.

Dorie: I don't understand why people miss the freedom thing other than they want something now and won't save for it.

Sharon Paxson: The cash advances seem so easy to do and yet you get whacked with a big fee still.

April 04, 2011 02:36 PM
Rainmaker
451,192
Allison Stewart
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
St.Cloud Homes

Gary- I quit using credit cards several years ago when i saw the terms of use change and as you pointed a late payment is now measured in HOURS not days and that interest rate is usary! The key word is budgeting. If you don't have the money now...wait it out until you do.  And always, always always build a buffer for emergencies.

April 05, 2011 10:11 AM
Ambassador
1,529,927
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Allison: Good for you focusing on cash, it will keep you out of traps in the long run.

April 05, 2011 04:57 PM
Ambassador
1,327,482
Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Gary,

Yes, in tis country it is unbelievably easy to create debt, and it is very diffidult to deal with it if you went beyond your means

April 05, 2011 10:05 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Ambassador
1,529,927

Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information