Archive for May 20th, 2009

Please bend over. Your new interest rate is 21%.

// May 20th, 2009 // 4 Comments » // Finance, Thoughts

First, a bit of dissertation. Later, an important bit of advice about YOUR MONEY that you should take to heart…

Well, the Senate passed the Credit Card Reform Bill. This means we’re not far from the days of no surprise interest rate hikes, over limit fees without our approval and droves of “You’ve been pre-approved!” in the mail.

I hate those… Here’s why;

I’m one of those guys who went through a company to consolidate my CC debt, having them negotiate with the banks to get a settled, lower price. My credit is effectively trashed right now. However, I still get those blasted pre-approved ads in the mail. Their credibility is on par with a bald man selling me hair growth rejuvenating cream. Sure, it’s his chosen lifestyle. I’m still not buying the damn cream.

I wonder if this is going to affect me in any way. As for that, I wonder how the banks are going to adapt. I can certainly recollect co-workers and friends who spoke of their unexpected rate hikes and the ever so lovely “You’ve paid on time for the past 20 years, by the way, we have a new fee for longevity.” Have any of you had a bomb dropped on you like this? As for the banks, they’re going to lose a large amount of revenue, perhaps placing them in a worse stance than they are currently.

So anyway, now for the advice.

All of that aside. With my financial situation, my wife and I had to find a solution. We are moving this month, so half a year ago we committed to a plan which would allow us to do the IMPOSSIBLE! Pay for everything with CASH! I’m lying you say? Pah! Disbeliever. Follow me down this road.  I’m going to say, very loosely, let me show you how “easy” it is.

  1. I stopped freaking eating out. For God’s sake, did you click the how many calories in a big mac link?
  2. We haven’t been to the movies in months. $8 a ticket and my wife loves the $6 movie popcorn and $5 soda. Want some data, webites? 1 movie a month x above rate x 2 people = $324 per year for 2 PEOPLE. Get Netflix.
  3. Do you really need that new pair of pants? My current slacks have a hole in them in a place nobody can see. When someone points it out I’ll be like “Oh crap, guess I gotta get them repaired.
  4. Coupon shop! I have only recently started this one, at the advisement of my buddy Nick. Saved me over $100 on the fridge we bought for the house.
  5. Accept hand-me-downs!!  Get your nose down, Captain snooty.  They’ll allow you to save more for the investment stuff (by the way, with appliances, pay attention to electric / gas consumption rates and factor it into cost.   Thank you Wabbit for the link)

I lied, it wasn’t easy.  We had to make a change, though, and it worked out brilliantly.  These are just a few of the items we changed. I could still drop the Internet from my cell phone, or taper back my Internet bandwidth. Right now, I’m just too much of a geek to do this though.

I’m proud of myself, quite frankly. I didn’t think we could do it, but we freakin did.  A new fridge, lawn mower, and a host of other items (not trying to sound braggy, really – it’s to prove the point).

The last thing I want to offer is a plug for http://www.daveramsey.com. Nope, he doesn’t know and I don’t want you to buy any of his stuff unless you want to. The big recommendation is to listen to a few airings of his show… http://www.daveramsey.com/tdrs/.  He knows his stuff and the broadcasts are free!  If you’ve been paying attention, you know that’s a good thing.

Good luck out there.  I hope you find your way! Post your comments and advice.

Have fun.

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