7 Free Money Rules to Remember

Look…when you’re playing around with money…it’s WAY too easy to fall asleep at the wheel and let stuff get out of control. In fact, that’s EXACTLY what the credit card companies are betting you’ll do. This is a situation where you can’t afford to let that happen. So here are 7 simple, but very important, rules for making this work to your advantage:

ALWAYS KNOW THE TERMS OF THE CARD BEFORE YOU APPLY. How long is the 0% term? How much is the interest if you don’t pay at least the minimum every month? Just one slip up and you will get burned with fees and interest. Know the terms before you apply for the card.

1. ALWAYS PAY YOUR MONTHLY PAYMENT A WEEK BEFORE IT’S DUE. If your payment is late or gets lost in the mail the “0%” terms are revoked and you’ll get hit with back interest and late payment penalties. Thus, we recommend that you always put your payment in the mail at least a week befor it’s due. Or, better yet, pay over the phone or the internet to insure that you pay on time.
2. NEVER BORROW MONEY YOU DON’T ALREADY HAVE OR CAN EASILY GET. In other words make sure you have the money saved or know where you can get it before you put charges on a 0% card. The last thing you want to have happen is not be able to pay it off by the end of the promotional term.
3. REMEMBER IT’S THEIR GAME…PLAY IT THEIR WAY! If you try to do battle with a credit card company you’ll most likely lose. Don’t send them “rubber” checks, miniscule payments or late payments and expect to talk your way out of it. They don’t care about you or your situation. If you can’t play by their rules then don’t play at all. It’s not worth it!!!
4. DON’T GET OVEREXTENDED. It’s tempting to open several of these cards at once and try to get as much free money as possible. That’s not wise unless you’re extremely disciplined. The payments and promotional period expiration dates can be hard to keep track of and you can easily get burned. If you want an interest free loan do it with one or two cards at a time and make sure you can keep track of when your payments are due and when the 0% period ends.
5. CANCEL THE CARD WHEN YOU’RE DONE. There’s really no reason to keep the card open once you’ve paid it off and gotten your free loan. All future purchases will come with interest unless you pay off the balance every month. To avoid the temptation of getting into debt we strongly recommend that you cut up the card and cancel it over the phone. This will insure that no one else uses the card (including yourself) and also get the open credit line off of your credit report.
6. DON’T TAKE THE CASH ADVANCE OFFERED BY YOUR CARD!!! When you get your 0% card you will almost always be offered 0% interest on cash advances as well as purchases. However, READ THE FINE PRINT. There’s always at least a 3% one-time service charge for cash advances. In other words… if you take a cash advance of $1,000 you’ll pay $30 to get that money.

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One Response to “7 Free Money Rules to Remember”

1. Audrey Ross@Snapper Creek real estate says:

   October 1, 2009 at 8:07 am

   LOL, Credit Card companies earn a lot through these techniques by providing their customers with ‘all-too easy’ policies which seems very attractive.

   One must read carefully what your credit card will offer you and what benefits are you getting from it.