Comments on: Control the behavior, don’t just limit your options http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/ Finance is not rocket science, unless it is government finance. Sat, 05 Jun 2010 22:48:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Danahttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-2396 Dana Wed, 07 May 2008 20:15:20 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-2396 I am totally on your side on this one. In fact, except where they are blatantly lying to customers or doing sneaky things behind their backs (I think Universal Default is a heinous practice that ought to be illegal!), it isn't the credit card companies causing people so many financial problems. It's the people themselves not using financial resources wisely. I can say that. I got a credit card in my early twenties with an original credit line of $3k. I had such a good record with them that they gradually increased the line to $5k or so, and then my husband got in trouble with the Army and we broke up suddenly. We're talking about the kind of trouble that gets you knocked down to E-1 from E-4/corporal. There was no way I could keep up the payments. So, been there, done that. And did the credit card companies hold a gun to my head and make me run up my balance? Nope. That was me. (My husband, too, but I didn't have to hand over my card to him. I could have said, "Hey dude, get your own.") I have also been interested to learn that credit card transactions are protected by federal law where debit cards are not. So, in a bid to Band-Aid their spending problems, lots and lots of people are putting their finances at risk with debit cards in the false belief that they will get into less trouble. But I've seen someone get slapped with an overdraft fee because of a $75 hold charged on his debit card by his bank because he bought gas, and I've had $15 pulled out of my savings account into my checking for the same reason, and I don't like the idea that I could be liable for up to $500 in purchases (that I almost never have in my account to begin with)--or worse, if I don't discover the theft of my debit card number within 24 hours. Whaaaaat? I guess this issue requires a combination of taking real responsibility for your actions and some serious homework on the pros and cons of various financial tools, and I guess I am repeating myself here. Band-Aids don't cut it when you've got a nick in the jugular. I am totally on your side on this one. In fact, except where they are blatantly lying to customers or doing sneaky things behind their backs (I think Universal Default is a heinous practice that ought to be illegal!), it isn’t the credit card companies causing people so many financial problems. It’s the people themselves not using financial resources wisely.

I can say that. I got a credit card in my early twenties with an original credit line of $3k. I had such a good record with them that they gradually increased the line to $5k or so, and then my husband got in trouble with the Army and we broke up suddenly. We’re talking about the kind of trouble that gets you knocked down to E-1 from E-4/corporal. There was no way I could keep up the payments.

So, been there, done that. And did the credit card companies hold a gun to my head and make me run up my balance? Nope. That was me. (My husband, too, but I didn’t have to hand over my card to him. I could have said, “Hey dude, get your own.”)

I have also been interested to learn that credit card transactions are protected by federal law where debit cards are not. So, in a bid to Band-Aid their spending problems, lots and lots of people are putting their finances at risk with debit cards in the false belief that they will get into less trouble. But I’ve seen someone get slapped with an overdraft fee because of a $75 hold charged on his debit card by his bank because he bought gas, and I’ve had $15 pulled out of my savings account into my checking for the same reason, and I don’t like the idea that I could be liable for up to $500 in purchases (that I almost never have in my account to begin with)–or worse, if I don’t discover the theft of my debit card number within 24 hours. Whaaaaat?

I guess this issue requires a combination of taking real responsibility for your actions and some serious homework on the pros and cons of various financial tools, and I guess I am repeating myself here. Band-Aids don’t cut it when you’ve got a nick in the jugular.

]]> By: I Must Have Written Something Good Last Week… | I've Paid For This Twice Already...http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-930 I Must Have Written Something Good Last Week… | I've Paid For This Twice Already... Mon, 28 Jan 2008 16:54:49 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-930 [...] Finance: Control the Behavior - Just Don’t Limit Your Options. Rocket talks about something I talk about too but he puts it into practice - it isn’t credit [...] [...] Finance: Control the Behavior – Just Don’t Limit Your Options. Rocket talks about something I talk about too but he puts it into practice – it isn’t credit [...]

]]> By: Carnival of Debt Reduction #124 | My Dollar Planhttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-921 Carnival of Debt Reduction #124 | My Dollar Plan Mon, 28 Jan 2008 12:04:21 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-921 [...] at the beginning of 2007 to a positive net worth at the end of the year. See how he did it in Control the behavior, don’t just limit your options at Rocket Finance. January 24, 1935 - The first cans of beer were sold in the United States. They [...] [...] at the beginning of 2007 to a positive net worth at the end of the year. See how he did it in Control the behavior, don’t just limit your options at Rocket Finance. January 24, 1935 – The first cans of beer were sold in the United States. They [...]

]]> By: My Dollar Planhttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-678 My Dollar Plan Thu, 17 Jan 2008 03:56:02 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-678 You hit the nail on the head: Control spending! You hit the nail on the head: Control spending!

]]> By: Julieana Smithhttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-546 Julieana Smith Wed, 09 Jan 2008 07:15:18 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-546 I just landed on your blog and found it to be very informative and interesting. I would be highly obliged if you could spare some precious moment of yours and allow us to contact you for giving an interview or allowing us to review your blog in a debt community site having 100K+ members. Please let me know your choice and mail me at julimith@gmail.com . I just landed on your blog and found it to be very informative and interesting. I would be highly obliged if you could spare some precious moment of yours and allow us to contact you for giving an interview or allowing us to review your blog in a debt community site having 100K+ members.
Please let me know your choice and mail me at
julimith@gmail.com .

]]> By: Karoly Domonyihttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-545 Karoly Domonyi Wed, 09 Jan 2008 06:44:51 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-545 Hi, Your site is one of my favorites seen around blog explosion. Keep up the good work. I enjoy reading your blog. It is great to find someone who can find the fun things in life! I wish you all the best in all years. Please take a look at my websites and increase your page rank, traffic as well. I look forward to developing a friendship and networking with you. Let me know if there is something I can do to assist you with your business. With Regards, Karoly Domonyi http://www.Aries.hu http://www.ariestrade.com http://www.AddProductFree.com http://www.AddWebSiteFree.com Hi,

Your site is one of my favorites seen around blog explosion. Keep up the good work.
I enjoy reading your blog. It is great to find someone who can find the fun things in life!

I wish you all the best in all years.

Please take a look at my websites and increase your page rank, traffic as well. I look forward to developing a friendship and networking with you. Let me know if there is something I can do to assist you with your business.

With Regards,

Karoly Domonyi
http://www.Aries.hu
http://www.ariestrade.com
http://www.AddProductFree.com
http://www.AddWebSiteFree.com

]]> By: rocketchttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-544 rocketc Tue, 08 Jan 2008 19:04:51 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-544 Thanks for stopping by. I think this is definitely an issue where good (I think) people can disagree. For the last 6 months my cc's have been slowly getting me out of debt - we'll see where I am in another six months. Thanks for stopping by. I think this is definitely an issue where good (I think) people can disagree. For the last 6 months my cc’s have been slowly getting me out of debt – we’ll see where I am in another six months.

]]> By: glblguyhttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-543 glblguy Tue, 08 Jan 2008 17:54:16 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-543 I agree, addressing the core issue is key, but that isn't as simple for most people as saying "I won't use them and will pay them off". If it were that easy we wouldn't have the debt statistics we have, nor would credit card companies be the profit centers they are. For some people like me, I think I have addressed the behavior problem, but I went a step further and eliminated the temptation as well. I mean if you are an alcoholic having a bottle of whiskey in your house probably isn't real smart. Even when you use credit card you are assuming some risk. They miss a payment, change the rules on you, change your payment date. They are masters at the game, don't forget that. They make the majority of their money when you pay after the grace period. Finally, I just personally don't want to endorse companies that can cause people such great financial problems. Understand this is a personal decision and I respect your Rocket. I do agree with Plonkee though...love irony of using people using what got them into debt to get out! Just too risky for me...they have a lot more time to think about how to weasel me out of my money than I do to watch them. I'm done, see ya Visa and Mastercard. I agree, addressing the core issue is key, but that isn’t as simple for most people as saying “I won’t use them and will pay them off”. If it were that easy we wouldn’t have the debt statistics we have, nor would credit card companies be the profit centers they are.

For some people like me, I think I have addressed the behavior problem, but I went a step further and eliminated the temptation as well. I mean if you are an alcoholic having a bottle of whiskey in your house probably isn’t real smart.

Even when you use credit card you are assuming some risk. They miss a payment, change the rules on you, change your payment date. They are masters at the game, don’t forget that. They make the majority of their money when you pay after the grace period.

Finally, I just personally don’t want to endorse companies that can cause people such great financial problems. Understand this is a personal decision and I respect your Rocket.

I do agree with Plonkee though…love irony of using people using what got them into debt to get out! Just too risky for me…they have a lot more time to think about how to weasel me out of my money than I do to watch them.

I’m done, see ya Visa and Mastercard.

]]> By: Jeffhttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-541 Jeff Tue, 08 Jan 2008 14:48:33 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-541 Excellent post!! I fully agree with your view point, and adressing the core issue rather then the symptom that so many want to bandaid. Kudos! Excellent post!! I fully agree with your view point, and adressing the core issue rather then the symptom that so many want to bandaid.

Kudos!

]]> By: rocketchttp://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-540 rocketc Tue, 08 Jan 2008 14:45:29 +0000 http://www.rocketfinance.net/2008/01/08/control-the-behavior-dont-just-limit-your-options/#comment-540 I'm not perfect in my avoidance of temptation. . .but Mrs. Rocket and I constantly keep each other accountable. No perfection here, but we had no choice but we had to find a way to free up some cash. I’m not perfect in my avoidance of temptation. . .but Mrs. Rocket and I constantly keep each other accountable.

No perfection here, but we had no choice but we had to find a way to free up some cash.

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