Home » Credit » Crazy Checks

Crazy Checks

Enter your email address to follow Know Your Money and receive notifications of new posts by email.

Join 416 other followers

Categories

RSS Know Your Money

  • Listen To Certified Financial Planner Tonight, On Donell Edwards: VIEWPOINTS
    Understanding how to avoid making costly mistakes in managing personal finances, and achieve and maintain control of personal finances. Continue reading →
  • A New Day
    I apologize for my absence, but I embarked on a new venture that took much more time than I imagined, but it was well worth it.  In March of last year I started my own talk radio show.... Continue reading →
  • The Conversation Everyone Avoids, That Almost Everyone Should Have
    38% of American households carry month-to-month credit card debt...."Households with the lowest net worth (zero or negative) hold an average of $10,308 in credit card debt."...69% of Americans have less than $1,000 in savings, while 34% say they have no savings at all. Continue reading →
  • Important Announcement
    So, having money problems is not always the result of a lack of knowledge but can involve a person's judgment, circumstances, and sometimes... Continue reading →
  • Her Story
    Recently, a story came to light in my hometown about a 27 year old woman who was cited for a misdemeanor sex charge. She was caught by an undercover detective in a sting operation targeting escort services. It was her first night on the job. How did she get there? She said.... Continue reading →
  • Know Thyself
    She told Oprah that losing her money was the result of, “being a millionaire with a ghetto mentality.” ... The only relationship she had with money was spending it. Continue reading →
  • Saving Is Not Optional!
    There are many attitudes and philosophies about saving, but there is one factor that cannot be ignored in achieving financial security, and that factor is.... Continue reading →
Advertisements

Thought for today:  All deception in the course of life is indeed nothing else but a lie reduced to practice, and falsehood passing from words into things.  – Robert Southey, British author, 1774-1843

 

Know Your Money
Monday – December 5, 2016
Crazy Checks
By Dwight Harshaw, BBA, Personal Finance Counselor 

 

Dwight Harshaw, BBA

Dwight Harshaw, BBA

We all receive them, mailings from credit card companies that contain checks-that were not ordered or requested. I must confess that I have used one. I’ve taken advantage of a zero percent transfer fee, no interest offer-which is rare today-to pay off the balance of another credit card that I could have paid anyway. I remember it felt good initially but for months afterwards, it was a burden to pay the loan back. Fortunately I was able to pay it back within the designated time period and suffered no repercussions from using it. I was lucky. Many are not.

The marketers of debt do all they can to entice us to use their crazy checks. The checks can be used to pay off debt, make purchases, or deposit money into bank accounts. The credit card companies want to make sure that we have money to spend-up to a defined limit because they are not crazy-with strings attached. The strings or terms for using the checks are not hidden. There is a time period in which the interest charged will be zero or very low, provided that you make your payments on time. There is a transfer fee that is capped at a nominal amount. They are almost like regular checks, right? Wrong!

 

Man Holding Forehead --- Image by © Royalty-Free/Corbis

Image by © Royalty-Free/Corbis

 

Many people use the checks, experience setbacks, and their terms change. A delayed or missed payment can cause you to pay more fees and high interest. It is all there in black and white in the terms and conditions, read it.

When you receive unsolicited checks in the mail from your bank or credit card company, tear them up. Using them is almost as bad as writing a hot check. They are not money substitutes, they are loans. They are a clever way for issuers to keep you in perpetual debt. It is too easy to overextend yourself. And when you are overextended you can’t build wealth.

 

About Dwight Harshaw:  Dwight Harshaw is a personal finance counselor, realtor and writer.  He has a BBA from the University of Arkansas at Little Rock in Finance with emphasis on financial planning.

Follow us on Twitter  and Facebook for more information about personal money management.
twitter-i

like-us-on-facebook

 

Copyright © 2016 CWR Media – All Rights Reserved

Advertisements