[Rhodes22-list] for your consideration - credit cards

Robert Skinner robert at squirrelhaven.com
Mon May 19 11:17:37 EDT 2008


Brad,

Glad to hear that you survived the pretzel-bender's 
delight of flying.  On my recent flight from Boston 
to Munich, the woman in front of me put her chair-back 
down while I was in the head, and I could not get back 
into my seat.  I spent 6 hours in the pull-down jump 
seat on the bulkhead.  It was like being impaled by a 
telephone pole.

When you have some time to think about it:

I have to admit that your plan is more agreeable than my 
dream last night - I was carrying a pistol to guard the 
$36,000 in a paper sack that I was going to pay for a 
new vehicle.  Things did not go well.

Down to the realities:

How do you feel about the security of wire drafts into 
your bank account?  On one hand, it seems more secure 
than a debit card.  On the other, I am concerned that a 
fraudulent or otherwise improper charge against my card, 
once paid, would be harder to fight.  

Your thoughts/experience?

By the way, Fidelity is now offering only 1.5% for 529
accounts.  Better check your latest "agreement" to see
if they have changed terms for you.

/Robert Skinner
----------------------------------------------------------
Brad Haslett wrote:
> 
> Robert,
> 
> I feel your pain, beating the credit card companies takes some effort but
> can be done.  We pay for everything, I mean everything, on a Bank of America
> card that is tied into our daughters 529 plan at Fidelity.  We get 2% of our
> purchases up to $1500 a year deposited into her tax free education account.
> The account payment is automatically drafted from our checking account so
> there's never any worry about being late, and out checking account is
> overdraft protected by our money market account.  So far, we're over $7500
> ahead of the game. For anyone who has kids or grandkids, this is a great
> deal - far better than airline miles that you can never use when you want
> to.
> 
> Brad
> 
> PS - Made it to China in Steerage class on Abu Ghraib Airlines.  I should be
> able to stand straight by this time tomorrow.
> 
> On Sun, May 18, 2008 at 9:10 PM, Robert Skinner <robert at squirrelhaven.com>
> wrote:
> 
> > Something more for consideration:
> >
> > I have been using a Bank of America credit card for
> > 20 years, and have always paid by bill on time.  I
> > used to have 25 days to pay the bill.  They have
> > made a hell of a lot of money from me - about 5% of
> > everything that I have bought over that time.  But
> > now that is not enough for them.
> >
> > Recently they have tightened up their terms to 20
> > days.  In addition, they now take their own sweet
> > time after the closing date getting the statements
> > into the mail.  The net result is that I have only
> > a couple of days to get off a check.  If I plan to
> > get out of town for a couple of weeks, I have to
> > get or calculate a balance and pay in advance.
> >
> > The alternative is a shower of fees and interest
> > charges, which have been increased as the grace
> > period has been reduced.  So far I have dealt with
> > it without getting bitten.
> >
> > I checked, and Chase bank and Discover have also
> > changed their terms in an identical way.  It is
> > clear that allowing Bank of America to buy out the
> > small local banks and their credit card
> > competitors has materially reduced competition and
> > effectively eliminated consumer options.  They
> > provide a cover for the minnows to hide under.
> >
> > The effect, if not the intention, is to game the
> > customer into paying late.  I fully anticipate
> > that the pay period will be shortened to 15 days
> > in the next 5 years, forcing customers to allow
> > them to draft a bank account or be late.
> >
> > Why not use debit cards?
> >
> > The Hannaford security breach exposed tens of
> > thousands of customers bank accounts to raiding,
> > and thousands had to cancel their debit cards
> > and/or bank accounts.  Electronic communications
> > are not by any means secure, and a debit card
> > breach (by law) is not immediately communicated
> > to the customer.  It took Hannaford 3 months to
> > 'fess up.  When the money is already gone from
> > your account, it is up to you to scramble to get
> > it back -- eventually -- while checks bounce like
> > Ping-Pong balls and your credit is ruined.
> >
> > Rik, it is not quite so simple as who pays
> > interest and who collects it.  We have allowed
> > the consolidation of financial power to the point
> > where the average guy has few options if he has a
> > run of bad luck.  The walls cave in.
> >
> > While some are concerned that we might tax them
> > for the benefit of others, it is increasingly
> > obvious that the corporations are being given
> > relatively unfettered license to farm the populace
> > for their own benefit.
> >
> > There is something wrong here.
> >
> > And, by the way, my home is paid for.
> >
> > /Robert
> >
> > -----------------------------------------------------
> > Rik Sandberg wrote:
> > >
> > > John,
> > >
> > > Glad you liked my quote, but you may have misinterpreted the message.
> > >
> > > Actually, it is not supposed to be a slam on bankers as much as a wakeup
> > > call to folks who can't seem to buy anything without paying for it on
> > > time + interest. The bottom line cost seems to never be considered
> > > anymore, only the monthly payment. Compound interest is a beautiful
> > > thing when it's working in your favor, but a tough adversary when it's
> > > working against you.
> > >
> > > One's "home" isn't HIS home until he's paid for it.
> > >
> > > Take good care,
> > > Rik
> > >
> > > "Is this gonna' put me in a bad mood? 'Cause I'm not usually this
> > pleasant".... Rik Sandberg
> > >
> > > Chris Geankoplis wrote:
> > > > Thanks John!
> > > > Chris G
> > > > ----- Original Message -----
> > > > From: "John Shulick" <jsbudda at verizon.net>
> > > > To: <rhodes22-list at rhodes22.org>
> > > > Sent: Saturday, May 17, 2008 9:56 PM
> > > > Subject: Re: [Rhodes22-list] for your consideration
> > > >
> > > >
> > > >
> > > >> <
> > > >> "There's a reason why bankers drive Cadillacs and the rest of us drive
> > > >> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
> > > >> Sandberg
> > > >>
> > > >> "all through this world I've traveled I've met lots of funny men some
> > rob
> > > >> you with a six gun others
> > > >>  with a fountain pen and through this world I've rambled and through
> > this
> > > >> world I've roamed you never seen an outlaw drive a family from there
> > home.
> > >
> > > >> "Arlo Guthrie.  A fine comment giving the credit crisis we face as a
> > > >>
> > > > nation.
> > > >
> > > >>                           JOHN Shulick
> > > >>                                Pgh. Pa.
> > > >>
> > > >>
> > > >> --
> > > >> View this message in context:
> > > >>
> > > >
> > http://www.nabble.com/Harmony-at-Mackey%27s-Marina-tp17251619p17299273.html
> > > >
> > > >> Sent from the Rhodes 22 mailing list archive at Nabble.com.
> > > >>
> > > >> __________________________________________________
> > > >> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> > > >>
> > > >>
> > > >
> > > > __________________________________________________
> > > > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> > > >
> > > >
> > > __________________________________________________
> > > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> >
> > --
> > Robert Skinner  "Squirrel Haven"
> > Gorham, Maine         04038-1331
> > s/v "Little Dipper" & "Edith P."
> > __________________________________________________
> > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> >
> __________________________________________________
> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list

-- 
Robert Skinner  "Squirrel Haven" 
Gorham, Maine         04038-1331
s/v "Little Dipper" & "Edith P."


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