Ask MetaFilter questions tagged with Money and credit

How to buy money with credit card

lometogo — Wed, 16 Dec 2009 18:04:47 -0800

Here's the deal. I need to use my credit card to get an additional 850 miles QUICKLY to buy an airline ticket. That means, in my card's scenario, that I need to spend $850 (1 point/$spent). However, I don't want to buy anything. I have heard of some place where you can buy coins, I think it was silver dollars, for a very small premium, and you could use a credit card. This would be the perfect solution because I'm using my credit card to buy negotiable currency. Anyone familiar with this, or can offer another alternative for me to build miles without having to get 'goods'?

How to get rid of credit card debt?

bluehermit — Tue, 04 Aug 2009 16:06:26 -0800

Credit Card debt for teh first time in my life, I'm lost as to what my options are. I have literally no one I can talk to about this and I feel like doors are being slammed in my face when I'm asking for help.

I just graduated in the spring with an Education degree and had virtually no money at the end of the semester. I had to move back to my city (better job opportunities) and some emergency expenses as well as bills starting to pile up. For the first time in my life I racked up my credit card because of that and struggled to pay it off, I'm at about $5400.00 on my credit card. I'm looking for a teaching job right now and in the meantime working at a golf course and tutoring in the side any spare moment I can get in.

I'm almost at my limit and am freaking out because I am living paycheck to paycheck. I have been not approved for balance card transfers from other companies or lines of credit, all say I have too much debt and don't make enough money right now. My last resort was my bank to do a consolidated loan and they submitted the application and I found out today I've been declined :( Same thing, I make too little money for a loan. They refuse to lower the interest on my CC and basically said I have no options....I have no idea what to do, I've had an account there since I was 7 and this this the first time I've ever had problems with debt.

I cut as much as I can for expenses, I have no cable, no land line, never eat out, walk instead of taking my car (unless I have no choice) etc. I've always been good about paying off my card, just times have been very rough for me right now. I feel like I've dug a hole that keeps getting deeper.

I'm so angry, frustrated and sad, I don't know what to do :( I'm bawling here... Any advice or ideas? (I'm in Canada if that makes a difference)

Thirty days from being broke?

Lolie — Wed, 15 Jul 2009 11:08:40 -0800

Thirty days from being broke. Four in 10 people said their savings would last only 30 days if they lost their job, while 38 per cent said they would have to use credit cards to cover household bills and other essential expenses. Is this just an Aussie thing? I find the trend towards using credit to pay day to day living expenses a bit scary, but how common is it really in your demographic/country/etc? Is living that close to the financial edge the new norm in the Western world?

Scared of going to prison due to tax payments. Need advice...

Anonymous — Sun, 21 Jun 2009 19:11:31 -0800

Scared of going to prison due to tax payments. Need advice... Please note:
*I was based in the UK.

*I know my spelling and grammar is terrible, I have learning difficulties.

* I now live in a EU country

I recently ran a company for 2 years, 1st year went very well and paid all the taxe for the company, myself and the staff contributions. 2nd year I was hit hard due to rates rising and customers going bankrupt. Which left me in no position to lay-off all the staff and leave the company premises. I tried to keep the company running but was failing to keep up with loan repayments and tax. I barely had enough to survive to pay the bills. I notified companies house that I will no longer be trading in the UK. They asked to write them a letter and I managed to get my accountant to sort out. However taxes was owed to the tax man in which I cannot close the company. There is no chance of getting out of it without declaring myself bankrupt. Which in my proffession means I cannot become a professional in that field anymore. I cannot risk this.

So I decided to move abroad to a country in Europe to start fresh. I left all my personal debt behind for personal loans which started up the company in the first place. My old company will becoming struck-off soon as lack of communication. I have been living abroad for about 8 months, starting up from scratch. Same again, finding it hard to pay bills but without owing anyone where I live. (I will no longer loan money). However I recieved a letter from one of the banks that I owe £800 too, I had not left any information of my wareabouts. They have thretened to take my belongings (Which I don't have any, apart from clothes and work computer). I'm baffled on how they found my address.

I owe approx: £30,000 spread out between banks, loans and credit cards. I leave no bad debt for my company apart from the 2nd year tax in which I lost everything.

I owe approx £3,000 in tax. I had to pay my old staff by selling equipment in the office. Nothing left on the old company is left.

My question is:

* Can the money I owe in the UK get shifted to my countries debt handlers? and risk bailiffs at my door?

* My debt: I have been told if I leave the UK for more than 5 years. The money owed will be cleared. However I have to stay annonoymous in my new address. Is this true?

* I know my company is being struck off in the UK, but the tax I owe. Can I risk getting jailtime for this?

* If I visit family in the UK could I be arrested?

* If I become a registered resident of the new EU country. Could I be tracked by other owed banks in the UK?

Bankrupsy isnt an option :(

I'm having sleepless nights over this and feel like its the end of the road.

I really appriciate any serious response, I know I'm bad for owing money to the banks. But that money was personal to setting up the company in the 1st place.

Shortening the leash on a financially irresponsible spouse?

Anonymous — Wed, 03 Jun 2009 07:19:44 -0800

Seeking techniques for aiding/supporting/educating a financially irresponsible spouse who talks the talk but won't walk the walk. My spouse and I have a very weighted financial relationship. I earn 90% of our income and handle 90% of the family financial responsibilities (getting and maintaining insurance, paying bills, getting rent paid, etc.). This in and of itself is unacceptable to me, and has been the subject of many discussions.

The salt in the wound, however, is my spouse's child-like self-control and sense of entitlement. We have a budget, spouse is aware of the budget, and professes to understand the importance of keeping within it. Spouse professes to check the bank balance daily and live within the funds budgeted for "pocket money". When we have the discussions, it's yes, yes, yes, and very convincing statements of understanding of how important it is to share responsibility.

Recently, with my approval, a new computer was purchased - big sums are not the issue here, they are always negotiated and discussed between us prior to purchase. However, the small things are the problem - $40 at the record store, $40 at the comic store, $40 on liquor (within 48 hours of a discussion on how we are "tapped out" on non-necessary spending under the budget). I can't get through here. In the last several days, there have been $200 in non-necessary spending, all knowingly in excess of the budget. No bills have been paid.

So, obviously, there is nothing really more to be gained from talking - spouse will say yes, irresponsible actions will continue nevertheless. I've tried taking away the ATM and credit cards, but I have two problems with that: (a) I'm not the parent figure here, and don't want to be in that bad emotional situation and all it causes, (b) It creates problems - spouse my go grocery shopping, get there, and realize spouse did not bring the credit card, or spouse may remember to bring credit card but not return it - method causes more problems than it solves.

So, I guess I am looking for advice/anecdotes/etc. on how you have solved these problems. Real-life strategies, suggestions, day to day ways you have helped problems like these, etc. Please, please, please be considerate enough to refrain from knee-jerk DTMFA comments, as we have been through hell this year (loss of a child), and I have no interest in that - I love and care for spouse, and am looking not to change my spouse, but to accept spouse and create joint management techniques that can work. Please also know spouse and I are both seeing a grief/marital/general support counseling professional.

Best Credit Card Deals in US?

~Sushma~ — Thu, 28 May 2009 11:27:25 -0800

What are the BEST credit card offers with values like cash back and other perks? I have excellent credit now, and want to buck up on credit now as I will be losing my job in August. I pay it off monthly. It's time the banks work for ME instead of THEM. Clark Howard was not helpful.

Need to find a company to fix my credit score and rating.

minsid — Wed, 20 May 2009 13:42:14 -0800

Need to find a company to fix my credit score and rating. I didn't understand years back when I had a credit card and kind of messed it up. Please help. Please advise as to how I can fix my credit score and credit rating.

I am looking for a debt helper or a method to fix it.

Is my credit card trying to trick me into spending more?

luckyveronica — Wed, 15 Apr 2009 14:12:48 -0800

Why was my credit line increased? I have a credit score that's on the low end of the "fair" rating. I have a high debt to credit ratio and have been making payments on a timely and consistent basis.

I am set up for auto-pay with Citibank. I logged in recently to move the payment date up, and saw that my credit line had been increased, giving me about $600 more dollars in credit.

Within the past few months I got a letter from Citicards saying that my APR would be increased, and if I wanted to opt out of that I would have to close and pay off my account at the current rate. Although I've always paid on time and rarely used the card (as in, once or twice within the last year), the rate jumped from something like 12% to 24%. I didn't want to opt out of this new increase because I want to keep the card.

I've never asked for an increase, so am just wondering why it would be given to me now, unasked, in this economy. What's the catch--are they hoping I'll run it up so they can charge me at this new APR? Citicards has never given me trouble (MBNA is another story) until the APR increase, and now this credit increase comes along and makes me even more wary.

I've become a much better saver, but I also have two major expenses coming up (dental work and school). I'm wondering if the credit card can be used for *one* of these expenses, or if I should keeped it locked away and continue to just use cash.

Is there a single resource that I can read to get an undertanding of the USian "money culture"?

themel — Thu, 09 Apr 2009 23:36:15 -0800

Is there a single resource that I can read to get an undertanding of the USian "money culture"? As a European, I am puzzled by many things I read aroung the Internets about the way personal finance appears to be handled in the US. (Examples: Why would anyone still be using checks in the twenty-first century? ATM fees still exist? People use credit cards to borrow money? One constantly has to worry about a magically calculated "credit score" that seems to rely an absurd criteria?)

Since I don't want to pepper AskMe with scattershot questions about this and I feel that reading plenty of disconnected detail pieces only heightens my confusion, I'm hoping that you can recommend a single resource (ideally a book) that I can read to find out how things really work, and how they came to be this way (bonus points for an explanation of what caused differences to Europe).

credit ratings across nations

Anonymous — Tue, 13 Jan 2009 11:34:02 -0800

I was born in the US, lived in Canada for ten years, and moved back to the States last year. While I was in Canada, I built up a solid credit rating- I had two credit cards, an unsecured line of credit with low interest (7%) and overdraft protection on my checking account up to $3,500. At one point when I was underemployed I built up some credit card debt, but I payed it off. Last year, when I moved back to the US for grad school, I got into a bad pattern of leaning on my credit cards and low-interest line of credit to pay for moving and start up expenses. This June, the world financial collapse coincided with one of my own- I was employed super part time, was making around $750 a month and was struggling to pay rent and buy $20 worth of groceries a week. I just couldn't pay my debt, and I paid very minimally, then not at all. I know I probably should have called the bank and tried to work something out, but what can I say- I panicked and froze. Currently, my total debt load is $14,000 on the line of credit, $3,700 on the overdraft and $1,400 on my Visa. I've worked hard to hustle up jobs, and currently I am no longer as financially destitute as I was. I also have just now been taken to collections. I have an appointment with Canadian credit counseling (the reputable nonprofit that everyone goes to) on Thursday. I plan on amalgamating and paying off the debt.

My question is: how much, if at all, will my credit raring in Canada affecr my US credit rating? So far there seems to be no bleed-through- when I applied for a cell phone a year ago, with excellent credit in Canada, I was told that I had no credit rating in the US- not a bad one, just a nonexistent one. I told them I had great credit in Canada, and was told that the two systems don't relate at all, as the identification markers (Social Security Number and Social Insurence Number) are different. So I'm wondering, if that's so, if it might be so in reverse- that I could maintain good credit in the US even if mine in Canada has taken a hit. I'm not planning on taking out any new credit cards or debt, have worked up a budget, and all the good stuff- but I'd like to know that I could rent a car, not be screwed if I moved and am applying for a new apartment, etc.

Also, I've been told that the credit counseling service may not be able to help me, as I don't work one full-time job- I'm a performer and grad student with several part-time jobs, and sometime chunks of money from performance gigs, grants, etc. So I'm also wondering- given that they charge a fee, might it be better for me to work out my own deal with collections? I can defintiely pay off the small Visa ballance in one chunk this month, and can pay perhaps $500 a month towards the other two after that. Not great, but I could have this debt paid in three years if I stick to it.

Finally, does anyone know of any good budgeting software/budget plans for folks who are self-employed who don't have a regular paycheck? It's been a struggle for me to budget when I might only get $1,000 one month from my regualr small gigs, but then get $3,500 in one chunk from a university performance. Most budget info seems geared towards folks who have one, or two, steady jobs.

Thanks in advance!

When No More Debt really has to mean No More Debt.

Anonymous — Tue, 30 Dec 2008 08:57:57 -0800

Someone near to me has recently recognised, and begun to address, a serious problem with debt. The debt is not a result of extravagant spending; it seems to stem from persistently bad decisions about consumer credit, and a habit of repaying loans with other loans. So... once the debt has been consolidated and the credit cards have been destroyed, what measures can this person take to ensure they never, ever get into debt again? Is it possible to voluntarily ban oneself from being offered credit? The person is in Australia.

Paying Off Debt v. Safety-Net Savings (Given the New Circumstances)

WCityMike — Mon, 13 Oct 2008 09:53:06 -0800

Traditional wisdom suggests that saving money while in debt is a bad idea: you pay hundreds of times more in finance charges on money you owe than you would get in interest on money you save. Under this scenario, your "safety net", at least until you are debt-free, would be the credit lines you are clearing out. However, in a response to a Lifehacker comment I made outlining this traditional wisdom, someone replied that given the financial crisis, companies could then lower your credit limit, regardless of cause, killing your safety net. Given this, is the traditional wisdom now wrong? Over the months to come, is the wisest place for any money remaining after bills an interest-earning savings account, or still towards reducing my credit card balance? If a mixture of the two, what ratio would you yourself recommend? Finally, what would you yourself consider a minimum balance to reach for your safety net, if you felt the traditional answer of six months' salary was, for now, too high a goal to be practically reached?

liquidity, liquidity

Anonymous — Wed, 10 Sep 2008 13:47:38 -0800

Should use my mutual funds to pay off my credit card debt? Credit card debt is about $4K with an APR of 15%. Right now I can afford to pay a max of $300 a month--$200 more comfortably--toward my debt, and there are no bonuses or foreseeable windfalls in my future. I have about $22K in mutual funds: enough to have as an emergency/rainy day fund left over. Mutual funds are doing okay now, but obviously not making more than I'm paying in interest on the card.

Does it make sense to liquidate $4K to pay off the debt, or let it ride and chip away at it over time? Or should maybe I go halves--liquidate $2K now and chip away at the rest over time?

I have never had a head for numbers and can't figure out how to think about this.

Just as an insight into my spending habits: I usually am able to pay off my balance--I just use the card for the miles--but I had some medical expenses that I put on the card that have just accumulated a lot of interest, and I'd like it to go away.

My credit is excellent, so I don't feel a compelling reason to keep this debt around just to improve my score. (I have a student loan that I pay on time every month.) I also have a Roth IRA and 401k, so this is not my only cushion for the future. I am at least 30 years away from retirement.

Any insights appreciated. Thanks.

Credit cards worth it?

Flamingoroad — Sun, 13 Jul 2008 11:36:03 -0800

I'm thinking of getting a credit card -is it worth it? I'm 22, in the UK and thinking about getting a credit card -I don't feel I need one (not a big or enthusiastic spender) apart from establishing a credit rating -is it worth it?

I understand the benefits -insurance, cash-back etc but it seems like a hassle -I'm perfectly happy just spending money that I have using my debit card.

However, as credit scores are partly based on duration of credit history I'm thinking I should get a credit card if only to prove to future mortgage providers (perhaps 3 or so years in the future) that I'm responsible with credit etc.

As I've also learnt that cancelling cards reflects badly on credit rating so any card I do take out is hopefully going to last me a long time.

I bank with Natwest and am thinking of taking out a credit card with them as it would be easy to pay it off each month with my current online banking setup. But there are no benefits/cash back with it. Aren't credit cards desperate for people to sign up? I might not too excited about credit cards but I don't want to miss out on decent benefits like cash-back etc if there's available.

In summary is it worth getting a credit card and if yes, which is the easiest to use, best 'perks' and recommended over the long term so I don't end up dealing with the 'financial clutter' resulting in opening up other cards in the future?

Any UK specific advice/opinion would be much appreciated!
Thanks

How to spend 25k to reduce debt and increase freedom!

crewshell — Fri, 13 Jun 2008 14:11:09 -0800

A man has debt, he comes into a little bit of money... how best should he spend it? A man has debt.
6k in student loans (5%)
19750k in credit card debt (ranging from 8-10 % interest)
15500k car loan (car is worth 12k)

Man gets 25k at 2% interest.
Man thinks he could get away with no car for 6 months, saving him 600 a month.

Should man pay off credit cards & student loans and continue to drive his car

or

Should man pay some student loans, sell car (take the lose) and pay off credit cards?

What makes the most financial sense. Ultimately regained financial freedom and the ability to go back to school is the goal. Though eventually another car will be needed.

P.S Current car is a gas hog. 18 MPG

The Prints and the Popper

Christ, what an asshole — Mon, 28 Apr 2008 06:27:18 -0800

I have this money-making idea in mind, and I wanted to test its potential viability and profitability with some of you who may know more about banking and credit cards... So my idea is pretty simple. For starters, I have great credit. My plan is to take out a couple new credit cards with a $10,000 line. I take it off one and invest it into a CD account with 4% interest (like ING, for example). Every month, I pay off the $10,000 going back and forth between cards, and in the span of a year, I net $400 from interest on the CD account.

Or take out 24 cards and net $400/month (104 cards/$400/week, etc.).

So yeah, it seems simple enough in my head, at least other than for the potential non-FDIC insured $520,000 I'll have floating around and the nightmare of paperwork on tax day.

So do I have it wrong anywhere? Am I overlooking anything?

Photo Opportunity

sixcolors — Tue, 11 Mar 2008 11:35:03 -0800

Where can I get $1200? (quickly) I know there was a similar question a while back, but my situation is a little different from the other OP. I want to switch from a film SLR to a digital SLR camera. The camera (and lens) I want is around $1200 total.

What are some ways I can make (or find) quick money? A "normal" job is kinda out the question. I'm a full time grad student with an internship. And I have to watch after my elderly grandma on some of my free time.

Now, I am tempted to just get a credit card, buy the camera, and pay the bill with photo gigs or taking stock photos. I know almost nothing about credit cards. Will my bill be around 25$ a month? Lower or higher? Do I have to be employed in order to recieve a credit card?

I'm also looking around my house for things to sell. But I think most of my stuff is junk. I don't think my folks would be happy if I sold their stuff, lol. There IS a gumball machine that I think is around 25-40 years old. It's in pretty good condition. Where I should I go if I want to sell this? Is it worth selling?

Recommendations for a financial advisor/accountant for a young couple?

scazza — Wed, 30 Jan 2008 13:51:24 -0800

Recommendations for a financial advisor/accountant for a young couple in NYC? We've read a lot about finances, but I would like to sit down with a person. I'd prefer someone who can do it all; to slog through all of our financial life, to ask questions of, to plan, to do taxes, not just someone interested in investing. I don't know if it should be someone who specialises in freelancers (arts and computing) if there is such a thing, and I think I'm looking for someone independent because I don't want to worry about prejudiced advice.

We both have irregular careers: his as a specialized-but-underpaid programmer doing both freelance work and a day job that changes every couple of years; hers currently studying but eventually working in a performing art that involves lots of travel and work accomodation (apartments) paid out of pocket (but tax-deductible) and pay on a performance-only basis.

With this in mind, we have no idea how to achieve our goals. We are relatively good at our basic budgeting and financial management but need help with saving for retirement (IRA) and a baby someday, managing his 401K (503b), improving credit, buying a home as soon as practicable (we feel like we're throwing money away on NYC rent), affording travel to stay close to family on three coasts of the US, plus the UK and NZ, and very necessary vacations. A wedding would be nice too but it seems too complicated already.

Thanks!

Building the Credit

Morgangr — Sun, 06 Jan 2008 19:22:31 -0800

I am trying to build up my credit. I would like to pay my rent by charging my credit card and then paying it off each month. Is there a service that will mail a check for you by charging a card? Can any one thing how to make this work?

Credit card payments for undergrads

deeman — Thu, 15 Nov 2007 17:50:34 -0800

How can I set up a system for allowing fraternity members to pay their dues by credit card without shelling out cash for a service? Any legal issues? I'm the alumni councelor for my fraternity at my old university and would like to help the undergrads make some positive changes within the chapter. I would like to set up a system where members can pay their dues and alumni can donate money to the chapter by using their credit cards. Obviously the fraternity is a nonprofit organization. First, what legal issues should I be warry about? Second, what are some ways I can accomplish this? I've looked into setting up a paypal account, but can businesses only take credit card payments? Ideally, I would like to give alumni the opportunity to make recurring donations of some trivial amount each month to ensure the undergrads have consistent cash for scholarships, trips, house maintenance, etc. Any idea?

How do I restore my credit in 2.5 years?

The Deej — Sat, 07 Jul 2007 11:12:09 -0800

Beyond the obvious (Google and MeFi searches have been done), what can I do to restore my credit over the next 2 and half years? I am recently divorced. My ex-wife had numerous health problems, not the least of which was hypochondria. Add to that her gambling problem, and her lack of desire to work, and, even after insurance paid their cut, I was left with more medical debt than I could keep up with. This resulted in scores of medical bills being turned over for collection. The bills will soon be totally retired, but meanwhile my credit is worse than bad. (Hint: I couldn't even qualify for a high-interest credit card that HSBC kept pestering me to apply for!) For the next 2.5 years, I am paying spousal-maintenance (don't get me started on the fairness of that), so I will have to get by with my current car for now (1992 Saab). At the end of the maintenance payments, I want to buy a nicer car, which will require getting a loan. So I want to take steps now to be ready to reward myself with a nice car in February 2010.

Random data: My salary is a little above average, plus I have additional income from freelance design work. My teenage daughter lives with me full time, and I receive no child support. I have no credit cards, car loans, or other loans. I rent an apartment (and have no interest in buying another house any time soon). 100% of my debt issues are medically related. No consumer debt. In the past, I have owned several homes. The medical debt was nearly all on behalf of my ex, even though I am the responsible party, if that matters.

So, I am looking for "beyond the obvious" insight, particularly your own tales of credit rehabilitation, or if you work in the credit industry. Any little-known hints, tips, tricks that can maximize my efforts? Thanks in advance.

Apply for a loan to help my credit?

MrBCID — Sat, 23 Jun 2007 21:05:05 -0800

I am in my 20's, have no debt and have no need for a loan; should I get one anyways to help my credit? I have a high credit score, and I pay off my credit cards monthly; but I have never taken out a loan, not even student loans... I worry this will hurt me when the time comes to apply for a car loan, home loan, etc...

What kind of loan should I apply for? I would be able to pay off any loan I apply for, but don't know where to begin... I don't need a car nor am I looking to buy a house; so car/home loans are out... I have only heard of personal loans but don't know if this is the best option...

Whatever loan I decide to get would be placed in a savings account accruing 4.5%...

Any help is will be GREATLY appreciated...

I've paid off all my credit cards.... now what?

weiler63 — Wed, 07 Mar 2007 02:11:54 -0800

I've paid off all my credit cards.... now what? Over the past 6 months. I have managed to zero out the balances of all my CC's down from 10k.

Any help as to how long before this gets reflected in my credit score, and what if any tips you have for boosting that score.

If it helps, I'm keeping the lines open, and use them sporadically for small item purchases. Thanks in Advance. It is certainly a great day when you look online and see all zeros in the cc balances.

--Credit Debt Free

Parents ruined my credit!

idledebonair — Tue, 20 Feb 2007 15:43:05 -0800

Bad Credit Filter: When I was 19/20 years old, my credit was ruined. It's nearly 7 years later, are these charges going to disappear, or is that just an urban legend? Bad Credit Filter: When I was 19/20 years old, I had a decent job and got a few credit cards. I went to college, which my parents said they would pay for and support me during, so I quit my job. When money was tight for them, they said I should use my credit, and they would pay it off. Of course they failed to do that and ruined my credit to the tune of about $5,000. I am now 25 and I'm starting to get back on my financial feet. I have often heard that bad credit only stays on your credit reports for 7 years. Is this true? What is my best plan of action? Should I pay these bills off? Or should I just wait a few more years for them to disappear? From what point are the 7 years counted?

Creditors won't stop calling

ganzhimself — Sat, 20 Jan 2007 09:16:18 -0800

So... Debt collectors are calling, and I'm not sure if they're acting within the law. Please advise. I got in some trouble with credit cards and I am now working with MMI to get my debts in line. They're in the process of getting proposals sent out to creditors, but they said it does take some time for the requests to go through and to get approved. So, in the meantime, one of my creditors has been calling me at least three times a day, claiming that they're a law office, and they're saying that they either have "Exciting news," or "Important information" for me. I have talked to them a few times because I was curious to see what was going on... Needless to say, it was the bank. I looked at the FDCPA, and I'm not quite sure if what they're doing falls within misrepresentation or not. Are they acting within the FDCPA, or are they breaking the law?