Common Credit Card Myths

One of the problems dealing with credit cards is people don’t fully understand them. Below are some common misconceptions that can trap the unwary.

Myth: “As long as I make my credit card payment, the interest rate won’t change.”

Reality: That’s not necessarily so. More card issuers are adopting “universal default” clauses that let them jack up rates even if you stay current on your payment. Falling credit scores, missed payments to other creditors, bounced checks and spending above the card’s limit all are factors that can trigger higher rates.

“(Banks) can increase the rate if you’re messing up elsewhere,” said Mike Sullivan, director of education at Take Charge America, a Phoenix debt counseling firm.

Myth: “Card issuers need my consent to change key terms.”

Reality: Card companies can make unilateral changes with 15 days’ notice. Even finance companies offering supposedly fixed-rate cards can boost rates, impose new penalties and alter other terms.

Myth: “Interest rates on credit cards stay the same for people who pay their bills promptly.”

Reality: Rates can and often do change on variable- and fixed-rate cards. Both are driven by the prime rate, which has been rising for the past year.

“Having a fixed-rate card is not the same as having a fixed-rate mortgage,” said Greg McBride, senior financial analyst at Bankrate.com.

Myth: “It’s important to report lost cards immediately to minimize financial liability.”

Reality: It is wise to report missing cards promptly, but you won’t face unlimited losses. Credit card holders are on the hook for, at most, $50.

With debit cards, it’s different. You could lose all the money in your account, plus overdraft protection, if a loss or theft goes unreported.

Myth: “The federal government caps the amount of interest that can be charged on credit cards.”

Reality: Uncle Sam doesn’t regulate card rates.

All content is presented to you courtesy of The Desert Sun.

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Ways to keep a disagreement from being an Argument

1) Welcome the disagreement - Sometimes there may be a point that you may not have thought about, so be thankful if someone brings it to your attention. You never know, that disagreement could have prevented you from making a serious mistake.

2) Distrust your first instinctive impression - In most cases our first reaction in a disagreeable situation is to be defensive. Watch out because and keep calm because it may be you at your worst and not your best.

3) Control your temper - Always remember you can measure the size of a person by what makes him or her angry.

4) Listen first - Give your opponents a chance to vent and let them finish. Do not resist, defend or debate because this will only raise barriers. Try to build a relationship with understanding and not misunderstanding.

5) Look for areas of agreement - When you have heard your opponents out, dwell first on the points and areas on which you agree.

6) Be honest - Admit any errors you made and apologize for your mistakes. This will disarm your opponents and reduce defensiveness.

7) Promise to think over your opponents' ideas and study them carefully - I know you hate to hear "We tried to tell you, but you wouldn't listen." or "I told you so." With that in mind, please think about their points before you move rapidly ahead and find yourself in that position.

8) Thank your opponents sincerely for their interest - Anyone who takes the time to disagree with you is interested in the same things you are. Think of them as people who really want to help you, and you may turn your opponents into friends.

9) Postpone action to give both sides time to think through the problem - Reshecdule a meeting with that person later on that day or the next day, when all facts may be brought to bear. When preparing for this meeting ask yourself some hard questions like:

Could my opponents be right? Is there truth or merit in their position or argument? Will my reaction drive my opponents further away or draw them closer to me? Will I win or lose? What price will I have to pay if I win?

Of course there is many more questions you can ask yourself, but at least these will get you started.


This word of wisdom has been brought to you courtesy of Dale Carnegie, Principle 1: The only way to get the best of an argument is to avoid it. To find more content and books from Dale Carnegie just copy and paste his name into the Amazon search box below. Thank you.

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1 Good reason for being your own Boss

Enough said... Please post any comments below. Thank you.

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Tips on Saving Money and Gas

Don’t use the AC

I’m pretty sure you already know that turning on the air condition eats up a lot of your vehicles gas at least by 10%. Some other solutions for driving and staying cool is rolling down the windows, open up the vents and rolling back the sunroof to allow air end. Doing this will allow all the hot air out of the vehicle. Also, when you first enter you vehicle do not blast the AC, which will in return cost you a lot of money and waste a lot of gas. However, there is one and only one situation where it may be okay to turn on the AC and not waste gas or your money. It is driving on the highway at speeds 55 mph or above. At this point having the windows down decreases your fuel economy 20% or higher, mainly because the aerodynamics and the wind increasing the drag on your vehicle.

Find the best gas prices in your area online

The Internet as you all know is a great tool for everything. If you surf the Internet you will also find the cheapest gas prices in your area. Here I’ll give you a jumpstart:
Gasbuddy.com.

Hybrid or Not?

At first it sounded like a good idea, but Hybrid vehicles may not be the best route in saving gas. First, Hybrid cost about $2,000 more than a normal vehicle. Plus, the performance is not as great and the battery on average last up to 80,000 miles, which then you have to buy a replacement that cost $5,000-8,000. There is a tax deduction for having a hybrid car, but it is only limited to a certain number of vehicles. And, that number is substantially low.

Don’t fill your car up when the price is high

Gas station owners and supplies know people will pay high prices for gas so at times the will jack the prices up. The owners monitor how much people put in their gas tanks and if the gas price does go up and people are still filling up tanks then they’ll keep jacking up the prices. As a counter only adding a few gallons to your vehicle sends a message that the you are not willing to pay for gas at these high levels.

No Idling

Do not put your car in idle. When you vehicle is in idle you fuel economy drops straight down to zero. Most modern, good working cars today don’t need to be warmed up. Even if you are just shooting into WaWa, still turn it off.

Addition saving tips
-Travel light, the more weight you have the more gas you guzzle
-Check tire air pressure weekly
-Avoid stop-and-go traffic
-Avoid driving completely or just car pool
-Drive the speed limit

If you have anymore cost savings tips, please add them in the comment section thank you. Also, this information is taken from my newsletter Our $avior, so if you would like to subscribe to it add your email and name in the comment section. Or send me an email to pedromooreltd@aim.com.

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