If credit cards were horses, I would be crucified by animal lovers the way I’ve been repeating again and again that credit card bills should be paid in full every month. Banks don’t like me very much when I say this, and in fact a friend who is also a banker told me (very nicely but with a hint of acid hehe) that she would like to turn over my account on a silver platter to a competing bank.
Don’t get me wrong. I love my credit cards. I get free tickets to Butuan and Boracay every other year. I get cash rebates too. I manage my cash flows more easily and I don’t rush to payment centers anymore when Meralco says it’s time to pay up. If I could pay parking fees at the mall with my credit card, I would. But as much as I love those shiny plastic things, I hate paying interest more.
Think of this, if you have a P30,000 balance in your credit card and this has been going on for a year, you could have saved at least P12,600 just by paying interest the balance in full. And just to keep it simple, that computation is on straight interest, not even compounded interest. Imagine how many pairs of shoes you can buy with that! (Greedy laughter)
March 12th, 2008 at 5:24 am
11
maria Says:
March 3rd, 2008 at 12:50 pm
i did not plan for a c.card. i didn’t even apply for one; the bank actually sent me one. i put off using it for months until, finally, i realized i needed it for big important purchases. that was the only time i had it activated, 6 months after i received it. and i have just that one card.
i think the key word here is really responsibility. be responsible with your use of the card. know your limits. and when you make the mistake of paying late, learn from it and don’t make it again. believe me, it hurts.
by the way, also be wary of credit card companies calling about “promos”. well, maybe mine is an isolated incident. one time, an agent called me up at 10am, and offered me a “deal”–basically, he phrased it by saying that “they’re offering me money to pay off my credit card balance.” his exact words were: “igigisa kami sa sarili naming mantika.” admittedly, i’m not very knowledgeable about how business and finance worked, so i made him explain the process to me again and again and again for more than an hour. i remember even saying: “WHAT’S THE CATCH?” and he said: “NONE WHATSOEVER.” i thought i understood, so i said yes. one month later, i saw my bill and what they basically did was put the amount on installment (so i would pay less now) and gave me interest. so i freaked out. when i showed it to my sis, she explained it to me, and that’s the only time i understood. i called up the guy (i kept his number), chastised him, made him talk to my sister who chastised him some more, and demanded they remove me from that “promo”. it was such a sneaky thing for that company to do! i became wary of any calls from them after that. (which is sad, because this is a very big and respected bank/credit card provider.) it’s probably evil of me, but i hope that guy was fired.
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Maria: Bank usually do that they’re sending people all their advertising thats the only way they can make money kong mayroon sila ma dingoy! Its up to you to fall for it. I’ve receive junk mail everyday, I read it I keep the one I want I trash the one I don’t need.
About the person you’re wishing to get fired. Don’t hold your breath, Because if this person bring in lots of business for the company chances are he be promoted. Not getting fired.
The person I wish to get fired is Gloria Arroyo,…Because she don’t deserve to stay into her stolen power a minute longer for all the crimes she have done to the filipino people. But, As we all can see it she don’t want to give up her stolen power even though the filipino people already firing her. Why should she step down when there is plenty of money to be made while squatting in Malacanyang Palace. Hindi siya tanga! Ika nga!!!
March 10th, 2008 at 4:54 am
Thanks for the post. Very informative and thought provoking.
March 8th, 2008 at 10:03 am
10
diego Says:
March 3rd, 2008 at 11:33 am
I also always pay in FULL. Problem is they always increase my credit limit to almost 100,000 because they say Im a good customer and I always pay in TIME and in the FULL amount. Now they gave my name to other credit card company enticing me to apply for another card. But Im not gullible and I will not succumb to this scheme and get another card. One card is enough for me, I can always monitor my expenses. I notice that local banks here are ” profit oriented ” than ” customer oriented “.
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Diego: They’re on business to make money regardles! I don’t have credit card so I don’t have nothing to worry about. sasakit lang ang ulo mo sakababayad if you don’t have money. I don’t live on credit’s, I learn to live on what I can afford. If I can’t afford it I don’t buy it. Period!
March 8th, 2008 at 4:28 am
Salve: While most of my friend’s have 5/15 or more credit card’s I can be proudly say, I don’t have none! Why, Not because I’m not qualified I just don’t want it I pay everything cash If I don’t have any money to buy what I want it then I don’t buy it, Period. While some of the people I know having a hard time paying their debt’s I don’t have nothing to worry about. Ika nga walang sakit sa ulo! I don’t care if they call me KURIPOT. Nothing to be ashame being FRUGAL. I save every penny I make so that someday I have money to depend on, On a rainy day!
I’m happy not having credit card, I’m happy not having any debt’s to pay. And I’m free to do whatever I want to do. I’m a happy KURIPOT! (*.*)
March 3rd, 2008 at 12:50 pm
i did not plan for a c.card. i didn’t even apply for one; the bank actually sent me one. i put off using it for months until, finally, i realized i needed it for big important purchases. that was the only time i had it activated, 6 months after i received it. and i have just that one card.
i think the key word here is really responsibility. be responsible with your use of the card. know your limits. and when you make the mistake of paying late, learn from it and don’t make it again. believe me, it hurts.
by the way, also be wary of credit card companies calling about “promos”. well, maybe mine is an isolated incident. one time, an agent called me up at 10am, and offered me a “deal”–basically, he phrased it by saying that “they’re offering me money to pay off my credit card balance.” his exact words were: “igigisa kami sa sarili naming mantika.” admittedly, i’m not very knowledgeable about how business and finance worked, so i made him explain the process to me again and again and again for more than an hour. i remember even saying: “WHAT’S THE CATCH?” and he said: “NONE WHATSOEVER.” i thought i understood, so i said yes. one month later, i saw my bill and what they basically did was put the amount on installment (so i would pay less now) and gave me interest. so i freaked out. when i showed it to my sis, she explained it to me, and that’s the only time i understood. i called up the guy (i kept his number), chastised him, made him talk to my sister who chastised him some more, and demanded they remove me from that “promo”. it was such a sneaky thing for that company to do! i became wary of any calls from them after that. (which is sad, because this is a very big and respected bank/credit card provider.) it’s probably evil of me, but i hope that guy was fired.