You would be hard pressed to find any bank nowadays that does not provide $300 to $500 dollars in overdraft protection as a benefit to you banking with that particular institution. On the Wachovia Bank website, it states, “You're careful with your finances, but sometimes things just happen.” Isn’t it assuring that your bank is looking out for you by making sure that you have additional funds available and you will not be embarrassed at the store if you are not sure how much money you have available in your account?
What they are not telling you is that it is truly a form of high cost quick credit that can get you into trouble very quickly! Lets say that you have $100 dollars in your account and your purchase comes to $125 dollars. Congratulations! You have just successfully utilized the added benefit of your checking account. Now you owe the bank $25 dollars plus a $20 dollar Non-Sufficient Funds fee by your next paycheck, which they will promptly withdraw for you. If you calculate it like a credit card, your yearly interest rate is approximately 94% for one mistake.
This all may not seem like much, but it really does begin to add up. Especially when it becomes a common ritual in your daily lives. Because each paycheck gets smaller and smaller and the bank is going to get their money. I am not saying that banks are evil, but they are a business and they have to feed their employees.
There are things that you can do to avoid the trap.
§ Live within your means (can I be more obvious?)
§ Link your checking to your savings account to avoid NSF fees.
§ Seek financial counseling from a Accredited Financial Counselor Today.!
Thursday, December 20, 2007
Department Store Credit Card Perks or Pitfalls?
With more than 80% of U.S., households have at least one credit card, according to CardWeb.com, it is easy to see that there can be benefits and pitfalls and even misperceptions about all the credit card offers that are advertised. This article is focused on Specialty/Department Store credit cards and to have you ask common sense questions pertaining to which one if any is best for you. Personally, I hate all credit cards. If I cannot buy it with cash, then I consider it a want and not a need and can wait until I have the funds to pay for it.
Again, this is my opinion and that is it!
Department Store Credit Cards:
These cards are designed to keep you spending money at their store and not with the competition. Beware of their enticements. For example, many stores will offer you a 10 to 15 % discount on your first purchase or no payments for 90 days. Looks like a great deal, right? You purchase a new washer and drier for $770 and then discounted 10% costing you out the door $700. However, when you are paying them back at 24% interest, you will see that the interest is already worked into the product and you are paying more in the interest. $25 a month for 43 months earns you the right to say that you paid a total of $1,058 dollars for your $700 dollar washer and dryer.
Now what if you plan this time and were to save $100 dollars a month? This time though, you went and offered cash for the floor model, which had some dings and scratches on it and walked away with your product for $500 dollars? Just in case you are going to have an open house to show off your newly scratched washer and dryer, Universal Appliance Touch-Up Paint sells at most stores for less than $5 dollars.
With all the financial education in this country, these mistakes are no longer acceptable. Go see a Accredited Financial Counselor today.
Again, this is my opinion and that is it!
Department Store Credit Cards:
These cards are designed to keep you spending money at their store and not with the competition. Beware of their enticements. For example, many stores will offer you a 10 to 15 % discount on your first purchase or no payments for 90 days. Looks like a great deal, right? You purchase a new washer and drier for $770 and then discounted 10% costing you out the door $700. However, when you are paying them back at 24% interest, you will see that the interest is already worked into the product and you are paying more in the interest. $25 a month for 43 months earns you the right to say that you paid a total of $1,058 dollars for your $700 dollar washer and dryer.
Now what if you plan this time and were to save $100 dollars a month? This time though, you went and offered cash for the floor model, which had some dings and scratches on it and walked away with your product for $500 dollars? Just in case you are going to have an open house to show off your newly scratched washer and dryer, Universal Appliance Touch-Up Paint sells at most stores for less than $5 dollars.
With all the financial education in this country, these mistakes are no longer acceptable. Go see a Accredited Financial Counselor today.
The IRS wants you…
(THIS ARTICLE IS FOR ACTIVE DUTY REGULAR ARMY ONLY)Yes, the IRS wants you to receive the benefits you deserve every month instead of waiting until the end of the year. The Department of the Army will give you this money every month in your paycheck.
What is the advance Earned Income Tax Credit (Advance EITC)?
A1. The advance EITC allows those taxpayers who expect to qualify for the Earned Income Tax Credit (EITC) and have at least one qualifying child to receive part of the credit in each paycheck during the year the taxpayer qualifies for the credit.
Q. Why should I be interested in the advance EITC?
A. If you are working and
1. you expect that your 2007 adjusted gross income (AGI) and earned income will each be less than $33,241 ($35,241 if you expect to file a joint return for 2007),
2. you expect to have at least one qualifying child, and
3. You expect to qualify for the EITC; you can choose to get part of the credit with your paycheck.
The Advance Earned Income Tax Credit (AEITC) for TY 2007 maximum credit the employer is allowed to provide throughout the year with the employee's pay is $1,712.
Note: You may be able to claim a larger credit when you file your TY 2006 Form 1040 or Form 1040A because your employer cannot give you more than $1,648 throughout the year with your pay. You may also be able to claim a larger credit if you have more than one qualifying child. However, you must file your 2006 tax return to claim any additional credit.
This averages to approximately $130 a month. Go see your Bn/Sqdn Command Financial NCO now and see if you qualify. Put the money where it needs to be. Pay off your bills now instead of paying interest all year long and then still having to pay off the principal balance. You owe it to yourself to take charge of your finances.
SSG Jason C Smith
Installation Command Finance NCOIC
What is the advance Earned Income Tax Credit (Advance EITC)?
A1. The advance EITC allows those taxpayers who expect to qualify for the Earned Income Tax Credit (EITC) and have at least one qualifying child to receive part of the credit in each paycheck during the year the taxpayer qualifies for the credit.
Q. Why should I be interested in the advance EITC?
A. If you are working and
1. you expect that your 2007 adjusted gross income (AGI) and earned income will each be less than $33,241 ($35,241 if you expect to file a joint return for 2007),
2. you expect to have at least one qualifying child, and
3. You expect to qualify for the EITC; you can choose to get part of the credit with your paycheck.
The Advance Earned Income Tax Credit (AEITC) for TY 2007 maximum credit the employer is allowed to provide throughout the year with the employee's pay is $1,712.
Note: You may be able to claim a larger credit when you file your TY 2006 Form 1040 or Form 1040A because your employer cannot give you more than $1,648 throughout the year with your pay. You may also be able to claim a larger credit if you have more than one qualifying child. However, you must file your 2006 tax return to claim any additional credit.
This averages to approximately $130 a month. Go see your Bn/Sqdn Command Financial NCO now and see if you qualify. Put the money where it needs to be. Pay off your bills now instead of paying interest all year long and then still having to pay off the principal balance. You owe it to yourself to take charge of your finances.
SSG Jason C Smith
Installation Command Finance NCOIC
The Secret 100% Investment Finally Revealed.
Now who would have believed that there is an actual investment out there that will give you a guaranteed return, better than anything that the stock market has to offer. That investment is YOU! Paying off your debt will provide a greater return than anything an investment counselor can offer! Here is the secret…
If I have debt amounting the total of $5000 dollars and my monthly payments total $110 dollars a month 19.99% interest, it will cost a total of $9,424 dollars ($4,424 in interest). If I pay $250 a month, I save $3292 dollars in interest. By paying off my debt faster, it leaves me with more money to invest.
They key rule is, “Stop working for money and make your money work for you. Many believe that having a credit card makes us special. Well it does qualify you for special education at least. What good is it to invest $100 dollars a month at 8% when you are paying 19.99% on your consumer debt? The numbers just don’t add up.
What if you had no debt and you were able to invest all that money you were paying in interest? Could you actually prepare for your retirement? Could you actually purchase things you want without having to lay awake at night staring at the ceiling? Could you see the light at the end of the tunnel? Go see a Financial Counselor, get a financial check up, and start investing in yourself today!
If I have debt amounting the total of $5000 dollars and my monthly payments total $110 dollars a month 19.99% interest, it will cost a total of $9,424 dollars ($4,424 in interest). If I pay $250 a month, I save $3292 dollars in interest. By paying off my debt faster, it leaves me with more money to invest.
They key rule is, “Stop working for money and make your money work for you. Many believe that having a credit card makes us special. Well it does qualify you for special education at least. What good is it to invest $100 dollars a month at 8% when you are paying 19.99% on your consumer debt? The numbers just don’t add up.
What if you had no debt and you were able to invest all that money you were paying in interest? Could you actually prepare for your retirement? Could you actually purchase things you want without having to lay awake at night staring at the ceiling? Could you see the light at the end of the tunnel? Go see a Financial Counselor, get a financial check up, and start investing in yourself today!
Subscribe to:
Posts (Atom)
