Using the wrong credit card

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>>> MANY CREDIT CARD HOLDERS ARE LETTING THEIR CREDIT CARD PURCHASES GO TO WASTE >> Jennifer: WHICH ONES ARE BEST FOR YOUR OFFER THE BETT >> Jennifer: YOU ALWAYS HAVE THE OPTION, CASH OR CREDIT YOU ALSO NEED TO ANSWER THE QUESTION WHAT KIND OF CREDIT CARD ARE YOU USING? MANY CARD HOLDERS ARE LETTING THEIR CARD PERKS GO TO WASTE A LARGE PERCENTAGE OF CARD HOLDS USE CARDS THAT DO NOT BENEFIT THEIR PARTICULAR SPENDING HABITS JOE CRYER IS HERE TO DISCUSS HOW TO MAKE IT WORK FOR YOU

AND I KNOW THAT AS A FINANCIAL PLANNER YOU WOULD PROBABLY TELL MOST OF YOUR CUSTOMERS ONLY DO CREDIT CARDS IF YOU ABSOLUTELY DO TO DON'T INTHEAND YOU DON'T HAVE >>> DEBT IS HEART DISEASE TO WHAT CIGARETTE SMOKING IS TO LUNG DISEASE >>> AT THE END OF THE DAY IF YOU WANT TO GO ON A TRIP YOU IS TO HAVE A CREDIT CARD TO MAKE RESERVATIONS AS AN EXAMPLE AND YOU CAN START HAVING THESE CARDS WORK FOR YOU

>> DEFINITELY THE CREDIT CARD INDUSTRY IS SO CREATIVE IN THEIR MARKETING AND COMPETITIVE FORCES, HAVE MADE THEM PUT OUT SOME GREAT CARDS THE PROBLEM IS, WE AS CONSUMERS WE'RE MORE IMPULSE I WHEN WE'RE SIGNING UP FOR THESE THINGS AND WE'RE MORE ASPECT TO JUMP AT A ONE-TIME OFFER THAT WEARS OFF AND THEN WE'RE STUCK WITH A CARD FOR THE LONG HAUL WHEN WE SHOULD BE CHANGING THINGS UP >> WHEN YOU'RE THINKING ABOUT GETTING A CARD OR MAYBE YOU ALREADY HAVE ONE BECAUSE YOU CAN ALWAYS SWITCH

SITTING DOWN AND USING COMING UP WITH IDEAS, OKAY, WHAT AM I GOING TO USE THIS FOR? AM I GOING TO USE IT FOR VACATION OR USE IT BECAUSE OF THE PERKS FOR BUYING GROCERY? >>> DEFINITELY, YOU KNOW, IT IS A MATTER OF LOOKING AT YOUR SPENDING HABITS AND LOOKING AT WHAT THE ACTUAL PERKS ARE, YOU KNOW, WE LIKE TO TAKE WHATEVER POINT SYSTEM THEY HAVE AND TRY TO TRANSLATE THAT INTO DOLLARS OR PENNIES SO YOU KNOW WHAT THE REAL DEAL IS IT IS KIND OF A LITTLE SMOKING AND MIRRORS THERE BUT IF YOU ARE GETTING LET'S SAY 2% ON GROCERIES, 2% ON RESTAURANTS AND 1% BACK ON EVERYTHING ELSE, THAT IS PRETTY DARN GOOD DEAL >>> IF YOU HAVE — FRACK, SET UP THESEs SPENDING CATEGORIES RRK YOU GOING TO USE GROCERY, TRAVEL, GAS >>> THOSE ARE THE FOUR CATEGORIES THAT CARDS ARE GIVING CREDIT BACK

SOME OF THE TRAVEL CATEGORIES ARE RULE GOOD BUT YOU'RE FORCED TO USE THEIR OWN TRAVEL AGENTS AND SO FORTH IF THIS IS A BLANK CHEEK IS GOING THE COME TO YOU, TO US THAT IS THE CLEANEST SET-UP THAT YOU CAN HAVE >>> AND IT IS READING THE FINE PRINT, YOU KNOW SO THAT YOU KNOW WHAT BENEFIT THAT YOU ARE GETTING IS THERE A PERFECT CREDIT CARD OUT THERE? >>> I DON'T THINK THERE IS, YOU KNOW, AND SOME OF THE GREAT COMPANIES THAT ARE OUT THERE, THEY MIGHT HAVE 20 VERSIONS OF CARDS OUT THERE SO CLEARLY THEY'RE TRYING TO TARGET DIFFERENT AUDIENCES IT IS MOSTLY A MATTER OF ONE KNOWING YOURSELF AND TWO BEING ORGANIZED ABOUT IT

LET'S SAY YOU GET A CARD WITH 12 MONTHS ZERO PERCENT INTEREST PUT A REMINDER ORDINARY YOUR CALENDAR, ELEVEN MONTHS FROM NOW TO REMIND YOURSELF, OKAY, THIS IS GOING TO GO FROM ZERO TO OR 12 OR WHATEVER THE NUMBER IS SO YOU CAN KIND OF BE ONE STEP AHEAD OF IT >>> IS IT EVER WORTH IF YOU'VE GOT A REALLY HIGH CREDIT CARD, GETTING A LOAN OR SOMETHING ELSE TO PAY IT OFF? BECAUSE IN THE LONG RUN IT MIGHT SAVE YOU MONEY IN TERMS OF INTEREST PAYMENT? >>> IT DEFINITELY IS YOU REALLY HAVE TO LOOK AT YOURSELF, DO SOME SOUL-SEARCHING THERE

IF YOU'RE THE TYPE THAT IS GOING THE PAY IT OFF AND RUN IT UP AGAIN, START OFF BY JUST CUTTING THE CARD UP ALTOGETHER TAKE A LOOK AT YOUR HOME EQUITY AND IF YOU HAVE THE ABILITY TO BORROW A LITTLE BIT OF MONEY AND YOU COULD BE DISCIPLINED ABOUT IT, THAT IS A MUCH BETTER LOAN TO CARRY, BECAUSE YOU'RE GETTING AN INTEREST DEDUCTION AND SO FORTH PAY OFF THE CREDIT CARDS AND BE VERY FRUGAL ABOUT STARTING OVER THERE ARE SO MANY PEOPLE THAT ARE CARRYING BALANCES MONTH TO MONTH AND THAT ADDS UP TO BE A PRETTY GIANT EXPENSE, PAYING THAT INTEREST EVERY YEAR

>>> IF YOU THINK ABOUT IT, TOO, EVEN IF YOU PAY — I THINK I READ BEFORE YOU SHOULD TRY TO PAY 20% OR 10% OF WHATEVER IS ON THERE SO THAT YOU'RE SLOWLY PAYING IT DOWN SO IT IS NOT OVERWHELMING THAT YOU LOOK AT $5,000 AND THINK YOU HAVE TO PAY ALL THAT OFF AT ONCE BECAUSE YOU CAN'T DO IT >>> DEFINITELY IF YOU HAVE MULTIPLE CARDS, MAKE A CHART WHAT IS MY BALANCE? WHAT IS THE INTEREST RATE I'M PAYING AND TARGET IT TO WHAT I WANT THE HIGHEST INTEREST INTEREST RATE FIRST AND CHIP AWAY AT IT IT HAS BEEN DESCRIBED AS A DEBT PAYOFF SPIRAL AND GET RID OF THE CARDS, GET THEM OUT OF THE WALLET >> Jennifer: HIDE THEM, I HIDE THEM IF DRAWER SO I WON'T USE THEM

THANK YOU FOR BEING HERE IMPORTANT INFORMATION PARTICULARLY AS WE ALL HAD I INTO THE SPENDING SEASON WITH