When people pay off debt, many of them rush to close credit card accounts. Indeed, the process can be quite therapeutic. You pay off a credit card, and, to celebrate your freedom from the chains of the debt (and being on the wrong side of compound interest), you cut up the card and cancel the account.>>> [Read More]
Category Archives: Credit and Debt
No Interest for 12 Months? Watch Out: It’s Deferred
One of the most tempting deals is the “No interest for X months!” deal. Whether you get a pass on interest for three months, six months 12 months or even 18 months, it seems like a great deal. You can get what you want now, on credit, but without all the messiness that comes with paying interest.>>> [Read More]
Does Your Credit Card Cover Rental Car Damage?
It’s been a few years since I’ve actually used a rental car. But the last time I did use a rental car, I paid the extra $15 a day the company was charging for insurance to cover the car if it was damaged. I’ve never damaged a rental car, but I figure that the one time I don’t get insurance, something unexpected will happen. So I’ve always paid for insurance on a rental car. Until now. Next time I rent a car, I am going to save money on my trip by declining the rental company’s insurance.>>> [Read More]
Could Foreclosure Be a Smart Financial Move?
Ever since the subprime lending market began its decline about three years ago (there were strident warnings about subprime in 2007, a full year before the global financial crisis) there has been something of a debate surrounding whether or not foreclosure might actually be a smart financial move in some situations. There is even a name for a foreclosure done on purpose: “strategic default.” There are, of course, issues surrounding the idea of strategic default, and anyone deciding that foreclosure is the smart play will have to work through those issues.>>> [Read More]
