Allison Tait is the copy writer of a great reserve called, Credit Card Stressbusters. This book is an in depth look at why people use and love their credit playing cards. Plus the book relates to how to lose your credit card and the way to pay off the debt. We all are lucky to have a great interview with her this month. Lowest
OKAY Allison, maybe you could tell us a lttle bit about your background and what you do now?
I’m a journalist with more than 20 years’ experience. Intended for the past eight years, I’ve specialised in writing about personal finance for ninemsn Money and BING NZ and, more just lately, Madison and news. contendo. au. I’m very good at asking questions!
Allison you have written an e book called Credit rating Card Stressbusters. Inside you speak about all why people should cut up their card. But if you had to narrow it down to just the top three reasons why people shouldn’t get a credit card, what would they be?
In the book, I would recommend that folks cut up their cards because the effects is the fact if you’re reading the e book, you’ve got a problem with credit card financial debt. I believe the three biggest problems with bank cards are these:
1. They create distance between the purchase and the payment – and make it much better to spend money and live beyond our means.
installation payments on your Persons seem to be to forget that the money they’re spending is not theirs – it belongs to the credit card provider and it comes at a hefty price (high interest rates).
3. The lowest payments on credit credit card debt are devised to keep the bank happy – they’re not made to pay off your debts. If you just pay the minimum payment, usually it takes years and years to clear the debt, and cost you thousands of us dollars. To use a credit-based card properly, you must pay it back in full each month.
Just how did you come up with this idea and why did you want to write this reserve?
I had been approached to write the book as part of a series (there’s a great book called Mortgage Stressbusters as well). At the moment that I had written it, Australians were transporting record levels of credit greeting card and personal debt. I desired to write a e book that was easy to learn, practical and, possibly, interesting. I really wanted viewers to get at the end of the book (which is no mean feat with finance sometimes).
Available you ask a question from the readers’ point of view “How should i live without a credit credit card when the world is set up that way? ” What do you mean by the world is set up that way and just how does an individual live with no convenience of a credit cards?
The world is moving away from cash and towards cards. Some experts go so far as to suggest that we may be without cash completely in 30 to 5 decades. You desire a credit card to produce a booking just about anywhere these times (particularly online) and marketing pushes us towards the idea that convenience is the key (you only need to notice that latest ‘Tap and Go’ ads, where a man planning to pay with cash is treated like a social pariah). It’s hard to manage with out a credit card.
But there is a solution, and which a debit card. Same convenience and access, but you’re using your own cash, so less chance you’ll get yourself into personal debt trouble.
In your book you use real stories from real people fighting credit cards debt. Is there a story which sticks away in your mind about somebody who was in debt that you would like to talk about? (A Special Case)
One which stands out for me personally was the woman who fell to the problem of ‘creeping limit’. The lady was obtaining ‘pre-approved limit increase’ letters from her financial institution, arriving at those times when the girl might need extra money (Christmas, summer holidays etc). Her provider also allowed her to go over her limit, rather than having her card decreased. The limit on her credit card crept up over time from 1000 dollar to $4500, almost without her realising – all while she was still trying to pay up an overseas credit card with a limit of $7500.
She was working hard to pay off both debts – all the while consoling herself with the fact that her credit card debt has not been the worst in her circle of friends. 1 of her mates acquired a credit card financial debt of $30, 000.
This just proves you that you need to look at your own financial situation long and hard before accepting that the bank has your best interests at heart mainly because it offers an increase. Various people think ‘well, they wouldn’t offer it if they didn’t think My spouse and i could afford it’, but it requires more research than that.