Well done Number One Daughter-san! I have managed to rid myself of credit cards -- and caused myself some financial and cash flow problems by so doing. Still, it is nice to only use my ATM cards or PayPal debit card. If I really want something that takes a credit card I can buy a gift Visa or Mastercard for about a 6% up front fee.
I can also use PayPal's one time credit card plug-in after doing a transfer of funds from my bank to my PayPal account. Since that takes some time, it makes me think a bit about whether or not I really need the items. I use auto-checks online, PayPal, or direct bank withdrawal or money orders for my bills. Cash goes for local purchases. If I don't have the money, then I can't buy it. When there is no money for gas, I stay home!
As for credit unions vs. banks, I agree that it depends and many do get swallowed up by bigger c.u. organizations. Also, they can be stinkers on loan terms and repo'ing when you are late or violating the terms of their own contracts, particularly repayment arrangements that are all agreed to verbally in the case of job changes. Even if the head of the c.u. has agreed, they may decide to change and call the loan or repo with little or no notice.
Their regulation and appeal process is also somewhat convoluted compared to that of banks. It is extra important to read their fine print in loan documents as they often have a payment consolidation clause for multiple loans so that one cannot choose to pay off one loan and let the other lapse for a month or so without them calling all loans due and repo'ing any collateral put up for any of the loans, even if that loan is current. It happened to a friend of mine --- and the c.u. had actually lost her payment!
Love you -- pls read you email @laubenheimer.net & reply --- tnx. Did I tell you how proud I am of your excellent rants?
I worked for AIG when it was Connecticut General --then went to CG. Their execs always were arrogant s.o.b.'s who espoused "creative financing" for their clients and worked very close to the law --- sometimes close to flaunting it! (One of the reasons I quit them here)
Reason Obama et al won't let them fail is I believe they hold the mortgages on some prime business and gov't office real estate. They are part of the mega-fund insurance group that backs most of the smaller banks & insurance companies nation-wide. If they fail, shopping malls and lots of skyscrapers/apartment complexes et al will end up in foreclosure.
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Well Said, Ravan
Date: 2009-03-17 09:43 pm (UTC)I can also use PayPal's one time credit card plug-in after doing a transfer of funds from my bank to my PayPal account. Since that takes some time, it makes me think a bit about whether or not I really need the items. I use auto-checks online, PayPal, or direct bank withdrawal or money orders for my bills. Cash goes for local purchases. If I don't have the money, then I can't buy it. When there is no money for gas, I stay home!
As for credit unions vs. banks, I agree that it depends and many do get swallowed up by bigger c.u. organizations. Also, they can be stinkers on loan terms and repo'ing when you are late or violating the terms of their own contracts, particularly repayment arrangements that are all agreed to verbally in the case of job changes. Even if the head of the c.u. has agreed, they may decide to change and call the loan or repo with little or no notice.
Their regulation and appeal process is also somewhat convoluted compared to that of banks. It is extra important to read their fine print in loan documents as they often have a payment consolidation clause for multiple loans so that one cannot choose to pay off one loan and let the other lapse for a month or so without them calling all loans due and repo'ing any collateral put up for any of the loans, even if that loan is current. It happened to a friend of mine --- and the c.u. had actually lost her payment!
Love you -- pls read you email @laubenheimer.net & reply --- tnx. Did I tell you how proud I am of your excellent rants?
I worked for AIG when it was Connecticut General --then went to CG. Their execs always were arrogant s.o.b.'s who espoused "creative financing" for their clients and worked very close to the law --- sometimes close to flaunting it! (One of the reasons I quit them here)
Reason Obama et al won't let them fail is I believe they hold the mortgages on some prime business and gov't office real estate. They are part of the mega-fund insurance group that backs most of the smaller banks & insurance companies nation-wide. If they fail, shopping malls and lots of skyscrapers/apartment complexes et al will end up in foreclosure.