Real Estate going to be Cheap in Alberta?

[Dixie Cup]

Yes DC.

Ever since the Bank Of Nova Scotia started their 'You're richer than you think' campaign I have cringed every time I hear that.

People are being encouraged to get in debt based on the temporary equity on their houses. The Banks tell these homeowners that they can afford that new car for 4-5-600 a month because they have made 50,000 equity in just 6 months. Or buying all kinds of electronics and furniture from the 'don't pay for a year' realtors. And they hand out Credit Cards with abandon.

I've seen people open their wallets and they have 5 or more CC's. I ask them about it and they seem to think it's some kind of status symbol that puts them in a different category from what they really are which is just a worker class citizen.

I only have one CC (that I keep at home) which I have only used once in the last few years and that was to pay for a Vet bill for the dog, and I only used it because my debit card, which I also never use, had a $500.00 limit on it.

All debt is a burden and one should make sacrifices to avoid it. If it means you don't get the shiny big screen or car, so be it..

Wow, such common sense. You are 100% right. The record (so far) in our office was set a couple or more years ago - a couple came in to declare bankruptcy and they had 28 (yep twenty-eight) credit cards between them, all maxed out. Who the *** needs 28 cc's? OMG!!


I have asked some individuals why they have, (as you stated 5 or more) and have received answers like - well they kept sending me applications that I was pre-approved or kept sending them to me in the mail (??).


I've asked them, (kindly lol) if they've ever heard of a shredder (not really but I sure want to). Or, they kept raising my credit limit - and I would ask why they didn't contact the financial institution to lower it back down and they would respond - oh, I can do that? Seriously???? You have to shake your head as it can be funny and so frustrating at the same time.


I too have only 1 CC and I've travelled overseas and to the U.S. and have NEVER had to have any other. It has no rewards on it thus I have no yearly fees. It has done me well.


FYI - if you can't afford it in cash, you can't afford it on credit! Bottom line. (Just a bit of free advice). If you use a cc, then TRACK what you spend so that you know EXACTLY what your bill is going to be at the end of the month and that you can actually pay it ALL. Not paying your cc bill in full means that whatever you have purchased has just increased in cost. (You're welcome lol)


JMHO

 

[DaSleeper]

One credit card which I haven't used in three or four months since I only use it with pay pal online shopping, which I don't do these days because of the exchange rate....
I use mostly debit, with a $500 maximum single purchase, but since i am known to most of the bank employees of my bank, one phone call is all that is needed for them to raise my limit for a single purchase, then it goes back down...(one of the perks of having lived in a relatively small town all your life)

FYI - if you can't afford it in cash, you can't afford it on credit! Bottom line. (Just a bit of free advice). If you use a cc, then TRACK what you spend so that you know EXACTLY what your bill is going to be at the end of the month and that you can actually pay it ALL. Not paying your cc bill in full means that whatever you have purchased has just increased in cost. (You're welcome lol)


JMHO

If you have an IPhone ...one app I recommend is "Accounts" by SVT software...I've been using it for over 10 years with an Ipod at first then with the phone.....It's possibly the only reason I wouldn't switch to an Android phone....SVT doesn't make that app for android yet!

 

[taxslave]

Yes DC.

Ever since the Bank Of Nova Scotia started their 'You're richer than you think' campaign I have cringed every time I hear that.

People are being encouraged to get in debt based on the temporary equity on their houses. The Banks tell these homeowners that they can afford that new car for 4-5-600 a month because they have made 50,000 equity in just 6 months. Or buying all kinds of electronics and furniture from the 'don't pay for a year' realtors. And they hand out Credit Cards with abandon.

I've seen people open their wallets and they have 5 or more CC's. I ask them about it and they seem to think it's some kind of status symbol that puts them in a different category from what they really are which is just a worker class citizen.

I only have one CC (that I keep at home) which I have only used once in the last few years and that was to pay for a Vet bill for the dog, and I only used it because my debit card, which I also never use, had a $500.00 limit on it.

All debt is a burden and one should make sacrifices to avoid it. If it means you don't get the shiny big screen or car, so be it..

Credit cards can be used to your advantage. If you understand how they work. I just got a new PertocanCBC card because that is where I buy gas every two days. Get petropoints which are good for cheaper gas and it is a cash back card.Doesn't have a very high limit either. But I treat my cards like cash or debit card.

 

[Dixie Cup]

Credit cards can be used to your advantage. If you understand how they work. I just got a new PertocanCBC card because that is where I buy gas every two days. Get petropoints which are good for cheaper gas and it is a cash back card.Doesn't have a very high limit either. But I treat my cards like cash or debit card.

And that's the catch. They ARE useful if you use them properly. I tell my clients that to use a cc to their advantage, you use someone else's money while yours remains in the bank - and when the bill comes in, pay it off completely. That way, it hasn't cost anything. It's basically a matter of discipline and I tell my people if you don't have that discipline, don't get a cc!! There are prepaids and debit credit cards that are very useful too but you must have the money in order to use them so you're never over-extended.


Unfortunately, most people use cc's as personal "loans" and figure when they're broke, that's the time to use them. Guess the banks and other financial institutions have done their jobs well!!


JMHO.