237

This is a very generous impulse on your part. I'm going to criticize it, but please understand that I believe your intentions are great. What can go wrong You pay off her $40,000 debt. She is now debt free. You know what that means? Better credit. She can now borrow more money. This time she runs up $50k debt and is worse off than she was when you ...


186

Companies do it because they know you'll forget, and they get money as a result. You're only getting the free trial due to the number of forgetful conversions they get as a result.


183

This is no friend. The clue is that your user name and password aren't required. I've made payments for my mother in law, and the card number, just the 16 digits on front, were enough to send a payment. No one writes their username and password on a check when they make a payment. Think about that.


164

Can I be debt free or should I file bankruptcy There's no reason to file bankruptcy with $64k in debt and a $80K net salary. You can get out of debt in 1-2 years if you're willing to sacrifice. The harder you sacrifice, the less time it will take. Please advise me how to reduce my debt. Stop creating any more debt. Cut up all credit cards Put $1,000-2,...


158

Yes, you can dispute the charge. The deposit was to secure a particular bike. The point of that money was to ensure that you were an earnest buyer, or that he would have some money for his trouble if you backed out. You didn't back out, he did; so he owes you the money back. If there was a written agreement, he would not have sold your bike. I would tell ...


146

It’s possible your card was skimmed. This works by the scammer getting a physical swipe of your card, for example from a bogus attachment to a legitimate card reader, then making a duplicate card. That duplicate card can then be sent anywhere, resulting in your card seemingly having been ‘scanned at a distance’. Contact your bank and ask them to block your ...


143

I am a firm believer in the idea of limiting debt as much as possible. I would not recommend borrowing money for anything other than a reasonably sized mortgage. As a result, my recommendations are going to be geared toward that goal. The top priorities for me, then, would be to make sure, first, that we don't have to go further into debt, and second, ...


141

The offer of an increased credit limit may be a sign of increased confidence. However from a bank's point of view it is an attempt to get you to spend more and thus make more money from you. Decreasing your APR however will result in them making less money from you. There is no equivalence.


131

Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this. One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer ...


130

Ultimately you don't bear the fraud risk so you you don't set the risk tolerance. The three digit code, the whole card number, chip and pin, chip and signature, the signature on a receipt, the info in the mag strip etc. Your bank will tell you that all of them are really secret and you should protect them but would tattoo them to your face if they could. ...


121

If the rate is the same, then clearing one card to zero does have one advantage: getting your grace period back. Generally when you owe money on your credit card, and you make a new purchase that new purchase get charged interest starting on day one. But if you are not carrying a balance, in other words you pay off the charges every month, then new ...


121

You need to change the way you think. First, understand compounding. Not just intellectually, but viscerally. You need to develop an aversion to spending borrowed money. A debt with 22% APR doubles every 38 months. Every dollar you pay down your debt, cuts the total length of time you will be paying that horrible interest. Every $1 you spend now ...


120

Generally, there's no particular "win" to paying off the larger debt first, all things being equal. Pay largest interest rate first. (Now, some advisors say there's a certain logic to paying off the smallest debt first when you only have a trickle of money to do it, irrelevant here -- the concept is to create an "emotional feeling of success" as soon as ...


115

I personally have no financial problems Are you in desperate need of a financial problem? Taking a loan to pay someone else's debt is the fast lane to a financial problem. Unless this is your spouse, because their debts would be yours anyway, do not incur debt for them. If the debt is insurmountable, have the person file bankruptcy and be available to ...


115

Your expenses are currently higher than your income! This is your priority #1! I cannot stress enough that if you take on new debt in order to make payments on old debt, that is often the last stage before financial breakdown. This is a serious problem, even without your current level of debt. But you have not given us your monthly expenses. I suspect this ...


109

EDITED after OP added more details. no taxes have been taken out yet. 24% will probably be withheld, taking you down to 38K. The organization that ran the sweepstakes must withhold 24%. It's the law, and of course you have to claim it on your tax return, whether or not they withhold anything. Because they'll withhold, they'll send you a W-2G saying ...


100

After this happened the second time, I wonder if there could be a "catch" on this. No I mean, what is my bank's real motivation for allowing me to spend more money. Credit card companies make money in a few ways. Whenever you buy something on the card they get a cut of the merchant fees, the more you buy on the card the more money they make. When ...


100

I want to make a note of something for other people that find this question and may have other purchases or cards in mind. With a card that is accepted everywhere (VISA, MC, Discover, etc) when you get a zero interest introductory offer for say... 18 months, you will not pay any interest for 18 months and then start paying interest on any remaining balance ...


88

DO NOT respond directly to the email with your information. I cannot stress that enough: DO NOT respond to the email with any valuable information. If you decide to send them the CVV number to process the order, go to their website (do not click on a link in the email), and reach out to them using a customer service email or "Contact Us" number and ...


85

No, your debt is an asset. In bankruptcy assets might be sold off (there are different flavors of bankruptcy and they don't all involve complete asset liquidation). Your debt would either remain with them or be sold to another company.


84

fine because the application was declined anyway. No it isn't fine. Credit card applications generally need a hard pull, so get it rectified. Firstly check if an application was really made on your behalf. Some companies use this ploy to pull you into a scheme of making you apply for a credit card. Secondly call up the credit card company and ask them ...


84

Your friend is basically doing "Credit Card Kiting". While not strictly illegal* (there are nuances), it's an expensive way to maintain debt. Your friend would be much better off taking the time to consolidate his debt at the lowest possible interest rate and come up with a repayment plan. $35k seems like a lot, but it's doable and his current plan has him ...


82

The catch is that you are paying the extra cents for nothing but miles. If you want to "boast" that you earned 10 miles per dollar, you have to also note that you paid $4.00 for $3.20 worth of coffee. While 1-2 miles per dollar is a decent rate for a kickback when you are spending money on other things, if you are outright buying miles you should expect to ...


81

Credit card limits are, for the most part, soft limits; sometimes, a credit card will allow you to charge a little over your limit. The large amount they allowed you to go over your limit is unusual, but not unheard of. It is your responsibility to keep track of how much you charge on your credit card, not the bank. Just like with a checking account, you ...


81

Have her talk to her bank and ask if they have programs designed for people like her. If they aren't any help, consider switching to a bank with more of a customer-health focus. Many banks and credit unions have specific programs for people like her, to allow them to build credit with less risk (both for the bank and for her). Also, many financial ...


76

First, you need to be aware that the credit score reported by Mint is Equifax Credit Score. Equifax Credit Score, like FICO, Vantagescore, and others, is based on a proprietary formula that is not publicly available. Every score is calculated with a different formula, and can vary from each other widely. Lenders almost exclusively only use FICO scores, so ...


75

I would not be concerned about the impact to your credit rating. You already have an excellent credit score, and the temporary change to your utilization will have minimal impact to your score. If you really need to make this $2500 purchase and you have the money in the bank to pay for it, I would not recommend borrowing this money. Only put it on the ...


69

One advantage of the chip cards is that the card information needed to make purchases can't be easily skimmed or "stolen". Another is that it is more difficult to create a fake physical card. These advantages still exist regardless of what form of verification is used (or even if no verification is used). The type of fraud you're describing, in which your ...


69

They Do this using the Merchant Category Code. See https://en.wikipedia.org/wiki/Merchant_category_code. This is assigned to the merchant when they sign up with the bank that is going to handle their payments. And this code will be part of the meta-data that gets associated with the transaction that you do.


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