Credit Repair Help - Part 2

By: Ontario Mortgage Action Centre  09-12-2011
Keywords: credit card, debt, Credit Cards

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But when it comes to credit cards and debt issues we basically adopt a hands off policy and send them on their way.  It’s no wonder the average college student gets their first credit card within weeks of arriving on campus.  They use their new cards for any number of truly urgent “educational” expenses – pizza, beer, and entertainment.

Instead of leaving them to their own devices you should be as proactive about teaching them about credit as you are anything that can hurt them.  Credit mistakes can take years to recover from, and bad habits established at university can establish a disturbing pattern of overspending and splurging that can follow them for the rest of their lives.

I think you should begin educating your kids before credit is an issue because if they have a clear idea of how credit card companies work and what the true cost of carrying plastic debt is, they might be more inclined to take a pass on the offers of easy credit in lieu of saving for the things they want.

There’s something else you can do: Lead by example.  Cut your own credit cards in half and live your life on a cash or savings basis for non-essential items.  You’ll have more money and you won’t have to squirm when your kids give you a funny look for having the attitude “Do as I say, not as I do.”

Make sense?

It used to be standard practice for credit card companies to give you about 25 days to float before they would start charging interest, but that time frame has been declining for the last several years. If, like most Canadians, you don’t pay close attention to your credit card terms of service, you may not have noticed that the standard 25 day period has fallen to as little as 15 days.
Most of us just take for granted that these things never change, but the fact of the matter is that credit card companies are looking for new ways to make money. Of course, your opinion on whether or not this trend is fair has a lot to do with whether you’re receiving or making monthly credit card payments.

The companies will claim that they have to do this to stay competitive and profitable, while most credit card customers have the belief that it’s all about greed.

One good way to avoid some of these charges is to always pay your balance off in full every month as soon as your monthly statement shows up in your mailbox. If this isn’t possible you’ll find that your monthly budget is going to increase as you begin paying monthly hush money to the credit card companies.

So, what do you think of this trend? Do the credit card companies have a valid point? Is it getting harder for credit card companies to earn an honest living and surviving off of the current fee structure? Or do you think they’re trying to take you for every penny you have by nickel and diming you to death?

If you’ve ever been reduced to digging through the cushions on your couch for enough loose change for a gallon of gas to try to limp through until payday, you may be tempted by those payday advance commercials you see on TV. Before you run down to your neighborhood cash advance store, take the time to learn a little more about these companies – and their fees.

If the only reason you hold a credit card in your hip pocket or your purse is to capitalize on some of the rewards programs that credit card companies offer their best customers, you may soon be able to cut the ties that bind you.

When your credit stinks you may be tempted by bogus offers to fix your credit problems and help you obtain a major credit card – in one high priced transaction. These companies can take numerous forms – from firms purporting to fix all that ails your credit to companies claiming to help you obtain a major credit card. Here’s how some of them work:

Keywords: credit card, Credit Cards, credit repair, debt

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