Originally Posted by tshadow
While we're in this "recession" and besides, we're sick...
Ok = CREDIT CARDS
Did you know that now if you are late on one card, or buy something that is over by $1 on your limit, that ALL of your cards can then hop up your APR (your interest you're paying) to 34%!!!?
I was SHOCKED by this, and it's legal, approved by our Congress.
So, every few months, I call the 800 number on EACH of my cards, and I push the buttons until I get to a LIVE person. I ask them, "what is the APR on this?"
If it's more than 10%, I tell them I'm going to CLOSE this card unless they lower the interest. Some, I've only gotten to 16%, so on the file that holds that card, I put down the APR, and write "Do not use" - that's my secret code that the APR is too high, and use one of my others at lower rates...and like I say, I do this every three months. (This also prevents identity theft, as I'll explain more.)
So some argue, etc., but I always get that APR back down, and some as low as 4% to 9%.
NEXT - YEARLY FEEs.
I always ask, "what is the fee for this card, if any?" If a fee, unless the credit limit is VERY high for (emergencies) then I close cards with any fees now. There are too many cards who will give you a card for no fee. I demand no fee. Often, they say "ok."
NEXT - LATE FEE
On top of upping that incredible APR, some also charge like a $35 late fee. IF I can, pay it all or most of the balance off, I say, "as a professional courtesy, since I've had this card so long, paying it off, or paying a lot, will you take off that late fee?" They almost always say YES.
NEXT - no credit?
Well, you know I did bankruptcy work for ten years...so first, a Sears card is easiest to get. But you must use it, and pay if off EVERY month to build your credit score. Also, if you have a mortgage, pay it ON TIME, or else you're wasting your score down...but IF you're paying your mortgage late but say by telephone, ASK them if you're paying it all current, PLEASE take off the late thing on my credit...and they MAY say YES, and you're working back on getting that score up...
Secured credit cards are OK if you're using your own money to send to them, as long as they are low interest and no cost. If you use them, and pay them off every month, at the end of one year you can get your own money (the security) back, and you've now worked on getting your score up again.
If you're going to file bankruptcy, if you're going to need a car soon, lease it BEFORE you file the bankruptcy. This is legal. Not only do you have a safe ride while you're working and building back up your credit, but for a few years buying a car with a BK on your record requires HIGH APRs, and we don't want that.
In my opinion, do NOT ever take out an equity loan on your house. Most times you can BK UNSECURED debt, but home equity loans they can take your house, period. See an attorney for your specifics.
Don't buy appliances or electronics on SECURED type cards, if you can help it. Watch for the small print on your cards or their financing that they can raise the APRs way high if you're late, AND take the item away (repossess) it. Better to wait until you can pay cash.
When I was in school, I didn't have a t.v., (so no cable), and no computer (I used the library for free), and I even would turn off my telephone. It's not amazing to do this.
BUT, if you've been declared disabled by social security or work comp or if your doc will fill out a form, you can get your UTILITIES and even PHONE cheaper - just ASK about it at the company.
NEXT - Mortgages
I used to have to pay my mortgage late. As long as you make a deal with them BEFORE the third month, they can work a payment and a third deal. I don't know what Obama has done to help after the 3 month mark - I hear you can write letters and get some forebearances on foreclosures...remember that I used to do Chap. 7 to get rid of credit cards, then, right after, file Chap. 13 which stopped foreclosures as long as we made a payment plan that paid back the arrearage within 5 years. We had to have income proof that we could do it - but that could include part-time work by a spouse, a renter's payment included, even a "gift" by someone to promise to "help" each month by a specific amount. An attorney must strategize this with you - BK is NOT do it yourself, if you want to win and win all.
Anyone else have any tips on saving money right now?
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