I have seen folks save money in a varieity of ways - probably the most interesting is to actually take credit cards and instead of cutting them up, placing them into very large blocks of ice in the freezer. The thought being that this allows the user to keep the cards but think about the purchase while the card unfreezes. Interesting especially if they don't cheat by microwaving the card to begin with!
I have had a freezer moment over the past few weeks and it has taught me that sometimes using a debit card as cash really isn't that helpful. Don't get me wrong - I stick to the principle of "if you don't have it, don't spend it" and try to use my debit card as cash to help reduce credit card bill shock.
Recently I lost my debit card and frankly have had a heck of a time getting a new one. Since the debit card is actually a credit card that pulls from your checking account it needs special security features like a credit card - this is where things have gotten crazy. Well the technology makes sense but in the interim of getting the card turned back on I noticed something - I am spending less money. Yes, I have made some purchases with the credit card and I have pulled a little cash from the ATM using my wife's account, but I have made less day-to-day purchases.
So as an alternative to being cheap - you might just leave your debit card at home with your spare credit cards just to see if you save a little money over the next two weeks. I think I will continue with my "weekly allowance" in cash and once my card is working again maybe I will leave it at home too.
Monday, December 3, 2007
Wednesday, July 20, 2005
KISS
(repost from epinions)
KISSJan 22 '00 (Updated Jul 20 '05)
The Bottom Line Watch your spending habits very carefully, because someone else will watch them for you. I have found, after it happened to me to use the KISS method. Keep It Simple Stupid. Here is my formula:
-Make sure you don't over extend yourself with cards. Keep one or two cards. Cancel any accounts you may have opened and don't use anymore.
-Call the card company and request that they DO NOT send checks in the mail to you. These are easily stolen (someone was taking our mail from the box attached to the house!)
-Keep small balances. Don't make a habit of revolving your balances or transferring them too much. You will make yourself a marker to someone who can watch your accounts and move their balances into your accounts. -Use a small balance card ($250 or less) for purchases on non-secure areas. For instance, if you feel the internet is a bad place to buy, minimize your risk to the $250 limit. If you are in a poor little city and you don't trust the auto mechanic with your card number. Use the smallest balance possible.
-Keep track of receipts. If you do have to prove you haven't made a purchase, it is in your best interest to have some documented support of what you do and don't buy.
-Like the receipts, don't willy nilly your purchases. If you make purchases all over the place it will be hard to track a theft. Also, if you never use the card at a gas station, the first time you see a bill there, start making phone calls.
-Don't be afraid to question a charge to your bill. Sometimes companies bill under different names. If you don't recognize the purchase name, call the credit card company, or the phone number of the company on your bill. You may feel foolish asking about the charge, but these can add up.
-Keep carbons. I can't stress this enough. Watch tellers as they use your cards. They can copy the numbers and easily use them later on. Maybe to buy a new $499 PC from the net. Who is going to know. All the company needs is the bill name, card number and expiration date. They don't really care about the ship-to vs. address of record.
-Check your statement as soon as you get it. Don't wait, because thieves won't.
-Use cash. For small ticket items, don't use a card. By using a card for small ticket items you create a pattern that will cause grief with forcing a point with a credit card company.
These are just some of the "insurance" items I keep in mind when using cards. Your best defense is to have a couple of copies of emergency number to your credit card companies to report credit problems, or report missing cards. Keep these handy, and in a safe place. Some updated information on this topic is especially helpful since folks are uber worried about credit cards and personal spending is crazy.
1. I have heard that if you have open credit, leave it alone. Pay off the cards and watch them for traffic, but keep them open so that when you need the credit it is easy to come by. (Note: If you can't keep your hands off these accounts, by all means close them.) Open lines of credit can help you in extreme circumstances, but do leave you open to fraud.
2. Keep extra copies of your emergency numbers on hand and make sure your spouse knows where they are! I went to India and had all this ready should my cards be stolen while I was on the road, but low and behold my wife lost her purse in the states, and didn't have access to the information. As they say the information is only as good as it is easy to access.
KISSJan 22 '00 (Updated Jul 20 '05)
The Bottom Line Watch your spending habits very carefully, because someone else will watch them for you. I have found, after it happened to me to use the KISS method. Keep It Simple Stupid. Here is my formula:
-Make sure you don't over extend yourself with cards. Keep one or two cards. Cancel any accounts you may have opened and don't use anymore.
-Call the card company and request that they DO NOT send checks in the mail to you. These are easily stolen (someone was taking our mail from the box attached to the house!)
-Keep small balances. Don't make a habit of revolving your balances or transferring them too much. You will make yourself a marker to someone who can watch your accounts and move their balances into your accounts. -Use a small balance card ($250 or less) for purchases on non-secure areas. For instance, if you feel the internet is a bad place to buy, minimize your risk to the $250 limit. If you are in a poor little city and you don't trust the auto mechanic with your card number. Use the smallest balance possible.
-Keep track of receipts. If you do have to prove you haven't made a purchase, it is in your best interest to have some documented support of what you do and don't buy.
-Like the receipts, don't willy nilly your purchases. If you make purchases all over the place it will be hard to track a theft. Also, if you never use the card at a gas station, the first time you see a bill there, start making phone calls.
-Don't be afraid to question a charge to your bill. Sometimes companies bill under different names. If you don't recognize the purchase name, call the credit card company, or the phone number of the company on your bill. You may feel foolish asking about the charge, but these can add up.
-Keep carbons. I can't stress this enough. Watch tellers as they use your cards. They can copy the numbers and easily use them later on. Maybe to buy a new $499 PC from the net. Who is going to know. All the company needs is the bill name, card number and expiration date. They don't really care about the ship-to vs. address of record.
-Check your statement as soon as you get it. Don't wait, because thieves won't.
-Use cash. For small ticket items, don't use a card. By using a card for small ticket items you create a pattern that will cause grief with forcing a point with a credit card company.
These are just some of the "insurance" items I keep in mind when using cards. Your best defense is to have a couple of copies of emergency number to your credit card companies to report credit problems, or report missing cards. Keep these handy, and in a safe place. Some updated information on this topic is especially helpful since folks are uber worried about credit cards and personal spending is crazy.
1. I have heard that if you have open credit, leave it alone. Pay off the cards and watch them for traffic, but keep them open so that when you need the credit it is easy to come by. (Note: If you can't keep your hands off these accounts, by all means close them.) Open lines of credit can help you in extreme circumstances, but do leave you open to fraud.
2. Keep extra copies of your emergency numbers on hand and make sure your spouse knows where they are! I went to India and had all this ready should my cards be stolen while I was on the road, but low and behold my wife lost her purse in the states, and didn't have access to the information. As they say the information is only as good as it is easy to access.
Wednesday, September 6, 2000
Danger Bill Robinson
Danger Bill Robinson
Sep 06 '00
Credit is an important part of our society. We are given a loan of money, or implied loan of money to purchase goods or services now that we could otherwise not afford. I think that is what my Economics professor taught me.
Anyhow, you can have too much credit. What I mean by that is too many cards, or too many open lines of credit that may prove fatal in the future.The following actions typically get a casual credit user in trouble:
1) If you loose a card or cards through theft (what cards were they?, who issued them? what was that phone number for reporting lost cards?
)2) If you have a habit of opening cards for promotional gifts, or services
3) If you open credit with companies that have sleeper charges (now why am I getting a bill?)
Most of the above scenarios lead to or contribute to identity theft and abuse. If you don't carefully watch your credit history, you will get nailed. If you have a habit of opening accounts and not closing them later, how can you prove that this "new" card and bill you owe was setup by someone else?
I prefer to keep 1-2 cards of major credit open at one time. I keep an additional "small" card around to ensure that I always have somewhat secure credit (for overseas travel, internet purchases, swap meets, etc.)
Additionally, I know my bankers first name, and what grade his kids are in school. In the unlikely event that I do need to ask for an extension of credit I can go to him for help.
I never let my credit, or what is happening on it get out of my control. I can manage it by
1) keeping the number of things I have to keep track of small,
2) looking at my credit report from time-to-time, and
3) always making sure I can obtain credit only when I need it.
Sep 06 '00
Credit is an important part of our society. We are given a loan of money, or implied loan of money to purchase goods or services now that we could otherwise not afford. I think that is what my Economics professor taught me.
Anyhow, you can have too much credit. What I mean by that is too many cards, or too many open lines of credit that may prove fatal in the future.The following actions typically get a casual credit user in trouble:
1) If you loose a card or cards through theft (what cards were they?, who issued them? what was that phone number for reporting lost cards?
)2) If you have a habit of opening cards for promotional gifts, or services
3) If you open credit with companies that have sleeper charges (now why am I getting a bill?)
Most of the above scenarios lead to or contribute to identity theft and abuse. If you don't carefully watch your credit history, you will get nailed. If you have a habit of opening accounts and not closing them later, how can you prove that this "new" card and bill you owe was setup by someone else?
I prefer to keep 1-2 cards of major credit open at one time. I keep an additional "small" card around to ensure that I always have somewhat secure credit (for overseas travel, internet purchases, swap meets, etc.)
Additionally, I know my bankers first name, and what grade his kids are in school. In the unlikely event that I do need to ask for an extension of credit I can go to him for help.
I never let my credit, or what is happening on it get out of my control. I can manage it by
1) keeping the number of things I have to keep track of small,
2) looking at my credit report from time-to-time, and
3) always making sure I can obtain credit only when I need it.
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