Credit Card Application Deluge

[oregonpackfan]

This morning my wife put a pile of letters on my desk. They were all unsolicited, pre-approved, credit card application letters we had received in just the past week.

We counted them out. I received 6. My wife had 5. My 19 year-old daughter had 6.

I couldn't help but speculate as towhy so many Americans carry so much personal debt. Credit card companies are willing to provide cards to just about anyone!

Consumer advocate Clark Howard has mentioned on his radio talk show how credit card companies particularly target college students. Many college students are unfamiliar with personal finance management and use the cards frequently. When they cannot make the monthly payments card companies know that the students' parents will usually bail them out.

My wife and I limit ourselves to just 1 debit card and 1 credit card. We pay off our credit card bill every month so that we maintain a balance of zero. We have also counseled our college student to do the same practice. Fortunately, she rarely uses her credit card.

Has anyone else have experience or advice on the credit card usage?

[Cheesehead Craig]

My wife and I each have 2 credit cards, pay them off monthly and don't even have PIN numbers active so they cannot be used for cash withdrawals.

Another thing to do is tell your credit card company to have a max balance of say, $8-10,000 for your card. You really don't need to go higher than that (if even there). Also, that way if it does get stolen you don't have a limit of 30-40k on it and someone goes nutso with it.

You are doing the right thing and teaching your child the same. Have her credit card to a limit of $1000 to $1500. College kids don't need any more than that. Plus, it helps them not get into overwhelming debt as this cap is manageable.

[MJZiggy]

I wrote into the Direct Mail Association and had my name removed from the junk mail lists and haven't received a preapproved offer in years.

[Freak Out]

I have a 5 HP paper shredder just for all that crap. It really is stunning how much junk mail is shipped around the country.

[Scott Campbell]

Re: Credit Card Application Deluge

I couldn't help but speculate as towhy so many Americans carry so much personal debt.

The Millionaire Next Door blamed much of it on "keeping up with the Joneses". That and many Americans can't tell the difference between real wealth, and the appearance of wealth.

[GoPackGo]

I wrote into the Direct Mail Association and had my name removed from the junk mail lists

Can you expand on how exactly you went about this?

[Jimx29]

I just stuff a snot load of the apps (non filled out) all in one return envelope and send it in to "apply". Doesn't matter which company gets whatever app, alls I know is it cost them at least a little bit for the return postage

[MJZiggy]

I wrote into the Direct Mail Association and had my name removed from the junk mail lists

Can you expand on how exactly you went about this?

Here's a link that will tell you how to get off all sorts of lists and instructions for contacting the DMA are under "Too Much Junk to Handle Individually"

http://www.obviously.com/junkmail/

[woodbuck27]

Re: Credit Card Application Deluge

This morning my wife put a pile of letters on my desk. They were all unsolicited, pre-approved, credit card application letters we had received in just the past week.

We counted them out. I received 6. My wife had 5. My 19 year-old daughter had 6.

I couldn't help but speculate as towhy so many Americans carry so much personal debt. Credit card companies are willing to provide cards to just about anyone!

Consumer advocate Clark Howard has mentioned on his radio talk show how credit card companies particularly target college students. Many college students are unfamiliar with personal finance management and use the cards frequently. When they cannot make the monthly payments card companies know that the students' parents will usually bail them out.

My wife and I limit ourselves to just 1 debit card and 1 credit card. We pay off our credit card bill every month so that we maintain a balance of zero. We have also counseled our college student to do the same practice. Fortunately, she rarely uses her credit card.

Has anyone else have experience or advice on the credit card usage?

That's all you really need for a credit card and for emergencies. It's OK to have more than one debit card if you utilize more than one bank for some reason.

Try to handle just one credit card, never 2. . .3. . .4. . .

To some they are like a status symbol. Really they are just a trap.

I believe I heard this last week. if you have an outstanding balance of only 3.0 Grand on a card at say 18% interest on the unpaid balance.

You make the minumum monthly payment only.

Then it will take 17 years to pay that balance off and cost you approx. $3600. 00 in interest.