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Personal Finances / Credit Cards and Consumer Debt


Subject:  Credit vs Debit Cards Date:  10/7/1999  8:38 PM
Author:  akalane Number:  17194 of 312187

Several years ago, a friend and I opened a new retail business. I put all I had into getting the business off the ground, including savings and maxing out all my personal credit cards, which prior to that experience were always paid in full each month. Well the business didn't make it and we decided to close the doors. On the advice of my lawyer, accountant and family, I filed personal bankrupcy in 1995, knowing full well that I was to experince credit problems for the next 10 years. Fallacy - the credit card companies will want your business, knowing you can't file again for another 7 years. Fact - yes, if you're willing to put $500 to secure a $750 credit limit. All the offers I have received over the last 3 1/2 yrs have been rejected because of the bankruptcy. However, I'm learning to be a Fool now...and couldn't be happier and financially healthier. The only plastic I carry is my bank "MoneyCard", which not only is a debit card but a MasterCard. If the cash isn't in my account, then I can't purchase it. No interest, no late payment penalties, no monthly statements, etc. It takes a little advance planning, if for instance I want to make a big purchase or when I know I'll be traveling, to assure there is cash in the account.
Bottom line, the day I cut up those credit cards and was denied others, was the first day of my Foolish life.
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