Debt Freedom Plan » credit cards

Credit Cards Available in Canada

Jim Fitzsimmons — Fri, 05 Mar 2010 22:35:08 +0000

Well, it’s taken me a good part of the day for research, but I think I’ve got my next batch of stuff to write about here on this long and winding road towards becoming debt free. I’m going to write about credit cards available in Canada, and who knows – maybe we’ll both learn something

I have never paid much attention to credit cards and options such as no fee credit cards, or credit cards for students or zero interest credit cards. I have no idea how I managed with the 2 cards I have now.. I’ve been a RBC customer for years ( I have a story about this one day..) and probably just ended up with a VISA by osmosis. I wonder, I had a personal loan with them years back and I bet I got the card that way. I remember getting ‘assigned’ a credit card I think. The cobwebs are pretty thick up here..

For the Master Card Mosaic.I have NO idea how this card landed in my wallet. I’m not a BMO customer – Oh wait – I was. The student loan.

A quick story about the student loan. I had this loan for years and years and years. I still remember the payment – $61. The total was never much – about 5 grand I think and at $61 a month it took forever to get whittled away. Now considering, my gross income at the time was probably about $71 I was OK with that.

Well, as luck would have it, my little hobby site about memory prices actually started to pay off, and I started to make a wee bit more than my $71/a week/month. Fast forward a few years – OK, seven – and the student loan is down to about $1000. By this time, I had the $1000 saved and thought, what the heck - I’m in no hurry really as that $61 payment has been with for so long it’s like family, but I decided to pay it off anyway. So off I traipse to the new Bank of Montreal in downtown hamilton (scary down there now) and announce my intention to pay off my loan. The teller had me write a cheque for the balance and she handed me a receipt and that was it. The End.

There were no angels singing. (like my lattes) , or balloons or streamers or anything. Cars didn’t stop in the street, the bank manager didn’t come out and shake my hand and give me a larger than life recepit, and nobody took my picture and published it in the picture.

I guess if there’s a moral to this story it’s this: My life didn’t change by paying off my student loans. I went home, made a sandwich and then went to work. The end. All these get out of debt books and sites sometimes make it seem as your life will change drastically the day you become debt free but in reality for me it just ended up being a number on paper that changed and I was now for the first time in a decade, with $61 more cash flow.

I know the get out of debt gurus state that you should aim for three years to be debt free – but heck, I hung onto that student loan for ten years and I’d do it for another ten if I had to. I had a very good day job that was relative to the schooling and the loan so if it took me 20 years to pay off – so what? I was making my payments on time (or close, most months) and the banks were happy and I was happy.

Don’t let the get out of debt issue become your only purpose in life. I know, money issues can be a worry and I’ve been rich and I’ve been poor and I’ll be the first to say that being behind the eight ball for about 28k isn’t the best place to be financially, but it really is only money. For now, I’m making my minimums and when I find some extra income it goes towards the debt. But if I had a choice of a year’s worth of lattes or being out of debt a year faster - I’d choose the lattes. The extra year would come around eventually, anyway (the good lord willing)

I read an article today about a gentleman that is close to paying off his mortgage in about ten months and has the money in the bank now that if he wanted to he could write a cheque and be done with it. He posted on his site that he had the cash in the bank, but what’ the race? 9 or so more payments and it’s gone anyway and interest rates are low so he’s happy to pay that small little extra bit in interest on the small remaining amount that’s left on his mortgage. I think it’s a good move. There’s no streamers or balloons when you pay off a mortgage. The streamers come later - when you realize you’ve got a years worth of mortgage or student loan payments now saved and you’re in the enviable position of what to do with extra money - I think that’s when you can celebrate and you can crack open the bubbly.

All this to say: Don’t let the debt get you down. Be frugal, spend wisely and do your best to get out of debt fast and don’t give the banks any more than absolutely neccesary, but remember to stop and smell the roses too. Another month or so of payments won’t matter a lick in the long term. This is a slow slow process this get out of debt thing and don’t look back and wish you’d have stopped for ice cream (or a latte) on the way. Life’s too short. I recommend the latte route. It’s way more fun.

PS. I has planned on starting to write about credit cards at the start of this post, but I got sidetracked with my little student loan story, so all 3 or so of you lucky readers will have to wait until next time for for the credit card fun to begin.

Until next time, Spend Smartly.

Affiliate Marketing Grief. Day 52

Jim Fitzsimmons — Fri, 08 Jan 2010 22:28:58 +0000

I think I’m a glutton for punishment.

Remember how way back when, when I started this site – I started to list credit cards? And, I listed about six or so cards before realizing that selling credit cards will be more soul sucking than any day job ever could be?

Well, today I get an email from the credit card companies that I did list, and forgot about it with a laundry list about all the infractions because these posts didn’t have tradmark terms etc. They actually pay somebody to check EVERY page I had their credit card listed and sent a very specific list of all my infractions. If I didn’t complete and comply with their infractions, they would have to delete my account. (The credit card companies pay about $50 or so if you apply through one)

So, I deleted all the credit card infractions. It was just copy and paste of code they gave me and I can’t seem to figure out how if I’m quoting them verbatim they’d be upset, but anyway. I hit the delete key to about ten categories on this blog related to their names/brands, and emailed them that it was way too much work to keep their credit cards listed. But I’ve complied. Sigh.

How’s your Friday been?

The good news, is I’m making very, very, small headway with my little online ads project. I spent $10 again yesterday and actually sold a $100 item from photodailynews.com which results in a $4 commission. Total income today: $4.

I’ll do the math for you: I spent $10, and made $4. That’s a LOSS of six bucks. But, I learned a few tricks and fool that I am, I’m trying again today. If nothing else I’m determined. I’ve spent $20 today but I don’t get to see how much if anything, I’ve earned until tomorrow.

The good news is I sold about $100 of stuff this week on eBay so at least selling my crap will cover my losses. So for the first week back since the holidays: I’m at about even, except I’ve learned a bit so that’s good news. I’m also pleased with my $4 earnings for the week because they came from 3 clicks. Maybe I just got lucky, or maybe I can grow the traffic and sell more and more stuff over time.

We’ll see.

Bank of Montreal BMO Bank Credit Cards

Christmas Shopping With Your Credit Card. Day 25

Jim Fitzsimmons — Sat, 12 Dec 2009 22:59:18 +0000

Regarding credit cards, people usually fall into two camps: Those that think they’re the devil. and those that ‘need’ them, and can’t think on living without them. I used to be in the latter group, but I’m not in the first camp either. I like to think of credit cards as the same as power tools. Use ‘em well, and you can get a lot done, quickly, easily with faster and better results than by hand. If you use them unwisely,things can get pretty messy and painful, really fast.

So the trick is to use your credit cards consciously. Understand how credit works, and how you can use them safely and you can use them for your Christmas time shopping without dreading the bill in January. Here’s how:

1. If you can’t afford it, get out of the store. This really is half the battle. Ignore your emotions and put the thing down and walk away. You Dad doesn’t need another tie, your brothers don’t need a another xbox or wii, or whatever the latest and greatest thing is. How about you offer to help your family instead. I can’t remember half the gifts I’ve given, or received. But I can remember every laugh at the table or moment. Video Games and shampoo and joke gifts will just be at the goodwill or in a garage sale in a few years anyway. Time is really best gift you can give.

2. If you can afford it, ask yourself if there’s an alternative gift you could give. One of the best gifts I gave was to my 10 year old nephew a few years back. I took him to the mall and we just went for fries and the deal was he could pick out his gift, which he did. But my real gift was me. Why? (and I can’t believe I’m sharing this with the entire world). I thought I had a cap on the bottle of juice, and true to my klutzy self I thought the cap was on. It wasn’t. I then proceeded to shake said bottle, drowning myself in apple juice. The gift I gave was laughter. EVERY time, I see him he reminds me of this. and laughs and laughs and laughs.. The video game we picked up at the same time – it’s been long forgotten I bet.

3. If you have to have it/or give the gift be sure you can afford it when the bill lands. If you can, great. knock yourself out. Spend wisely and give give give. But if you can’t don’t. If your friends and family really care, they won’t care whether you’re worth six figures or six cents. They just care that you’re you, and you’re family.

4. When the bill comes, pay it off. First you get to be debt free again and have this christmas paid for right away, but to me the bigger attraction is here is your chance to stick it to the banks. They’ve been using your money for years, charging you for every ATM withdrawl, every deposit, every exchange rate, or mortgage interest, just to name a few.
This is your chance to use the bank’s money and let them pay you. If you do use your credit card for your christmas shopping, this has to be the biggest gift you can give yourself: Sticking it to the banks and using their money – instead of the other way around. You want the banks to hate you, not you hating the banks.

5. Compare prices. All stores are not equal. Compare shipping offers, or extras that you might get if you shopped elsewhere. Don’t be lazy. Go to a few stores and compare yourself or use price comparison sites that do the homework for you. Why pay full pop if you don’t have to?

6. Use a coupon. Do a google search for “(store name/item) coupon” and just watch what comes back to you. Ten seconds or less of effort could save you a good percentage on your final purchase.

7. Shop safely. Be sure the store you’re buying from is reputable. Look for trust icons to be sure the site is secure and your credit card data is safe when you shop. Don’t hand out your credit card number like it’s candy. Make sure the vendor you’re shopping from can be trusted.

8. Don’t be afraid to ask for a deal. Just because it’s the price, doesn’t mean that’s the one you have to pay. You never know, the store may be sitting on old inventory and just wants to move it. Send an email and ask for a better deal. The worse case is they say no. The best case, and probably what will happen, is that by you asking you’ll be offered something. Maybe it’s free shipping, maybe it’s a discount on your next order, maybe they’ll match a competitors’s lower price. But I bet it’s something. Especially online, the choices are enormous and abundant. Use that to your advantage. If they keep you as a long term customer, both you and the vendor win.

9. Be loyal. Stick with one vendor, even if the price or service might be a bit lower elsewhere. Price is only one part of the equation when shopping. For your loyalty, ask for a reward. Maybe it’s a reward card or points card, or maybe it’s just the fact that the owner or manager of the store knows you by name. You have value. A repeat customer is way easier to keep than getting a new customer. Build a relationship with the vendor over time, and don’t be afraid to ask for a reward for doing so. In the end, you’ll both come out ahead.

10. Have fun. Christmas can be stressful, it sure can. But there’s no better feeling than giving. Give freely, and watch what happens. The feeling you get from giving can’t be matched. Just don’t fall prey to the marketers and banks. Be smart this holiday season and have the best Christmas Season money can buy. Debt Free.

Sacrifice of the Day.

I know what you’re thinking: More cables, yay!. I know, but they’ve got to go and today’s as good a day as any.

It’s a video cable that allows you to hook up your DVD player to TV. The standard is a little dated by today’s standards but it still offers a one cable method to transfer video from A to B, so it should have some value. I don’t have a measuring tape, but I’m going to underestimate and say it’s 18 feet in length. It’s probably closer to 24 feet, but I’d rather be wrong and have it be a bit longer than shorter.