I have been feeling especially happy today thanks to the great advice I've received here and would have never known about if I had not been a Fool member.So I'd like to make a toast to all the great people that are on these boards. The reason I'm so happy and elated is that the Foolish advice I'm receiving is starting to pay off.I have just finished college (I'm 22) and consider myself well ahead in LBYM and Foolish living in general. My parents have helped me out a great deal in life (paid for college,giving me free rent,etc.) and I've been wanting to help them as much as possible.I first started using the "call in to reduce your interest rate" tip and amazingly it works. I used to have 6credit cards (First USA,Nextcard,Discover,USAA,Citibank,Get Smart) thinking it was actually ok, then well I woke up. I have now canceled the First USA,Nextcard (even though it would be canceled anyways now) as well as Get Smart. I know have 3, not the best of situations perhaps, having kept the Discover (I think that it will eventually pay off to have it when I'm able to use it more wisely and pay off all the debts on it right away) @12.9% with 1,700/2000 on it (I did a balance transfer to cancel my Next Card account recently),Citibank (I got this because the the travel discount vouchers for students and because it had a good intro rate of 9.9%). I know have been able to reduce my rates alone thanks to that advice. Going from 19.9% for most of my cards to 9.9% for 2 of them and 12.9% for my Discover.Though I'm somewhat content with this, it what I've been able to tell my parents that really makes me happy about the advice I have gotten. My parents have long been overspenders (my Mom takes most of the blame for that), falling into what I could explain as the easy way out system of payment where you don't think and use your credit card instead of cash even when you have enough. Because of that they have a pretty average credit rating, high debt to credit % and high interests rates. I forced them to have sit down and see what I could do for them, and it actually helped out. I'm not sure how much debt they exactly have of course but I do know that it is close to $15,000 with average interest rates between 15% and 25%. On top of that their highest rates are very close to their limits (something like $7k/10k @25 MBNA,6.5k/7k for Citibank @25).That being said my moment of glory today was telling my father to call MBNA and ask if he qualified for a reduced interest rate as well as getting rid of the ridiculous credit protection fee he somehow got trapped into buying and that puts 85 cents for every 100 dollars of purchases or whatever the balance may be onto his account. Seeing that the amount charged was $59 last month and that this could be used towards paying down his debt instead of delaying it, I think I convinced him. The happy dance part came when the service rep gave him a 17.9% APR. Nothing out of this world, but I'm sure this will save my parent several hundred dollars within the year while they continue to pay down their debt. Of course I also got a call from my mother very excited all of a sudden about realizing how good a thing it is to get rid of debt and how motivated she is. I can honesty say I had never heard her so motivated and excited about tackling something. She saw the light I suppose. She's slowed down on the impulsive purchases and realizes when she does want to but something to either pay in cash, or just wait it out instead of putting it on the plastic.So to wrap things up I'd like to all give you a big big round of applause and thank you for putting my family and myself on the right track.
What a great feeling to share what you know with someone you care about- and have them Get It!!!Peace & Foolst
>>>>> I know have 3, not the best of situations perhaps,>>>>>What kind of crack are you smoking? You need to cut up ALL your cards NOW. You have a serious problem and this is like an alcholic just taking one drink. You need to operate opn a CASH basis, FEELING every dollar as you spend it. PAy off the existing balances as fast as you can, and never by another thing w/o reaching into your wallewt and using cash.It's just my 2 cents.-reb(who can't believe people were recing this post?)
(who can't believe people were recing this post?) in my case I was reccing the fact that 1. mistakes were being acknowledged2. knowledge gleaned was used to educate others (the parents)3. responsibility was being taken for the debt.just my rationale.peace & recst
What kind of crack are you smoking? You need to cut up ALL your cards NOW. You have a serious problem and this is like an alcholic just taking one drink. You need to operate opn a CASH basis, FEELING every dollar as you spend it. PAy off the existing balances as fast as you can, and never by another thing w/o reaching into your wallewt and using cash.reb,I am sorry but I think you are completely out of line. It is possible to use credit wisely and to one's advantage. It is not necessary to live on a cash basis if you recognize and change your spending habits.Maybe I just misread your post but it seemed rather offensive to me.DT
Well what can I say. I am not going to applaud what I believe was a rather inappropriate and way to harsh comment for what I'm was trying to demonstrate. After all if I'm not mistaken or blind this is the credit card board, I'm not the only one with debts, and I doubt very much that my debts are comparable to some others here. I doubt also very much that retireearlyboi goes on flaming every single person posting here, but I hold no grudges and in some respects he is right (in a perfect la la land world at least). Of course cash is KING but as far as I know being in college you're almost obligated to have a credit card, not as much by necessity but for emergencies. I also happen to be in a position where my family is important to me and does not live in the US but on the other side of the ocean making it not very difficult for me to choose over what my preference may be.Now that I've graduated from college, hope to have a respectful job and teach not only my parents but hopefully other relatives and college friends I have not shame about the credit cards I hold or being on this post, why should I and the hundreds of others here.Besides that I'd like to thank those who do have words of encouragement. It's thanks to the postive vibe of the board and how everyone encourages everyone else that people push each other to pay off their debts and not consistently judge each other.
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