They're changing terms for responsible customers
Credit card companies are spending lots of money to tell you they're on your side.
Peter at Bible Money Matters has noticed the trend: Discover is pushing its cards as "a built-in easy-to-do budget and spending tracker," he said. He also got a mailing from Chase touting savings he could enjoy by using his rewards card, like discounts at Chase's online shopping portal.
We get irritated by the commercials claiming the card companies will bend over backward to help if you're having trouble paying your bills. (In all fairness, credit card companies do help some struggling customers with a variety of methods, like a temporary reduction in interest, to get them to keep paying. The companies don't want to write off the debt.)
Peter isn't buying all the feel-good stuff. He writes: "The credit card companies are not your friend. They just want your money."
Let's review some of the card companies' recent attempts to reduce their risk by assessing more interest and fees or getting rid of customers they no longer want.
How to use little sums to pay off debt
I have had several questions lately about snowflaking -- what is it, why do I do it, can we see examples of it -- so I thought I would write a quick primer answering those questions and more.
Snowflaking is a spinoff of the snowball approach to debt reduction popularized by Dave Ramsey. With the debt-snowball method, you figure out what amount you can pay to debt every month, and then you keep paying that amount, even as your debts shrink and your minimums get smaller.
To implement it, in a nutshell, make a list of all your debts, order them from either smallest to largest or highest interest to lowest interest (that is a debate in itself), and you focus all extra money above the minimum payments on a single debt -- one with either the smallest total or the highest interest.
When you eliminate a debt, you apply the payment you were making to that debt to the next debt in line until the snowballing effect of decreasing minimums and increasing amounts eliminates all the debts on your list.
Well, what are snowballs made of? Snowflakes!
What those dates on food really mean
Here's the funny but useful food story of the week: With the help of a food-safety expert, Chicago Tribune writer Julie Deardorff went through the old stuff in her pantry and figured out what to trash and what to keep.
Example: An undated box of dried mashed potato flakes, purchased in 2001 and taken along when its owner moved from Washington, D.C., to Chicagoland. (Why anyone would transport a box of potato flakes is not explained.)
The expert's opinion, as relayed by Julie: "The flakes are too dry to support the growth of microorganisms. No sign of bugs. Try it."
This little project started with a discussion about a seven-year-old can of Campbell's vegetable soup. As long as the soup can isn't rusty, damaged, dented or leaking, the contents are probably OK.
Alert: This post is not about refrigerated items. Also, stamping "best by" or "use by" dates on dried or canned foods generally is not mandatory -- and the date usually indicates quality, not safety -- but there are exceptions.
One place you don't want to look rich: A car dealership.
Shannon Christman isn't poor, but she is frugal, and sometimes other people confuse the two.
On occasion, salespeople have snubbed her -- and missed out on making a sale. Sometimes generous people offer help when it's not needed. Her thought-provoking post at Saving Advice should raise questions in any thinking person's mind about how quickly we make judgments about others. She also says, "The assumptions others make about my frugality -- usually that I have much less money than I actually do -- can be a benefit to me."
If you qualify, now might be a great time to refinance.
A story at USA Today -- "Mortgage rates at 37-year low: Average 5.19% for 30 years" -- disrupted our partner blogger J.D. Roth's vacation reverie. All of a sudden, J.D., who's not an impulsive guy, is thinking about refinancing his home.
He checked Bankrate.com and found a low rate of 5.085%, which would reduce J.D.'s payments to $1,111 and save him $275 a month. But wait. It could get even better, he wrote in a post at Get Rich Slowly.
Simply tossing it could put you at risk of ID theft.
Do you know why credit cards have an expiration date? In the beginning, it was because a credit card had a limited useful lifespan. After a few years, the magnetic stripe on the back would either get demagnetized or damaged so much that it was unreadable.
It wasn't until later that the expiration date was used as a security feature. For many years, you could continue to use expired credit cards because the stripe was fine and the expiration date wasn't used for verification.
Customers who haven't had a rate increase in two years can look forward to one now.
"Brainy Smurf" was pretty well gloating when MoneyMateKate announced that Citibank is upping her credit card interest rate. "I kinda selfishly thought to myself, 'Wow, sucks to be her,'" he wrote at Pants in a Can.
Then he got his own letter from Citi. As of today, his APR is jumping from 9.96% to at least 16.99% (and 29.99% if a payment is late). What's up? He pays in full every month and he's never late. And didn't Citigroup just get a huge government bailout?
Want to upgrade? Prepare for a big bill.
This post comes from Mark Huffman at partner site ConsumerAffairs.com.
For many iPhone users, AT&T's attitude toward them seems to be, "What have you done for me lately?"
Consumers posting comments on the AT&T support forum are calling for an iPhone users revolt, with the aim of persuading the carrier -- for now the exclusive iPhone network -- to change its upgrade policy.
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Joe Cantrell says he faces charges after trying to take advantage of the retailer's policy.