Tag Archives: credit card

Life Insurance and Credit Card Debt Discussion with Co-Workers

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My employer had an insurance agent give a presentation regarding life insurance and the agent gave out his business card to those who were interested in more information afterward. He was of course selling whole life insurance. I would write a post about the differences about term life insurance versus whole life insurance but there are much more qualified people than me to discuss this topic. To read a good explanation of the difference between the two, check out this post on Wise Dollar. Basically, whole life insurance will cover you for your whole life, hence the name, whereas term life will only cover you for a set term, i.e 10 years, 20 years, etc. The premiums for whole life insurance will be much higher than a comparable term life insurance policy.

When I first graduated from college, a friend of mine took a job as a life insurance salesman excuse me, he preferred “financial advisor.” He kept trying to sell me whole life insurance and explained to me the benefits of it but I wasn’t interested. I was only 22 and had no dependents, why do I need life insurance? My job provided a group life insurance policy which would have covered my funeral in case an unfortunate early demise were to befall me. He tried to explain the investment aspect to me but, I still wasn’t interested. The fees are too high and I’d rather just buy term life insurance and invest the rest on my own. Much of my arguments were based on a book I read regarding whole life insurance versus term life, and I’m glad I read it.

Fast forward to present time. I had strong feelings regarding term life insurance versus whole life, but I went to the presentation with my fellow co-workers. After the life insurance presentation, some of my co-workers were discussing the topic. One of my co-workers said that whole life insurance was better than term life because term life insurance does not cover you for your whole life. There are some benefits to whole life insurance, but they generally pertain to those with a large net worth and for those who are interested in estate planning. This was not the argument my co-worker was making.

“Why do you need life insurance to cover you for your whole life?,” I inquired. Wouldn’t a 20 or 30 year term policy be sufficient to protect you, since by then your kids will be all grown up and not dependent on you. Plus, being that we work in government, after 20 or 30 years, we would qualify for our pension so our spouse would be secure as well. My co-worker responded that the money would be used to pay for the funeral and credit card bills. She chided me for not thinking of my family. “Do you expect them to pay those expenses?,” she asked.

I told her that I would like to think that in the next 20 to 30 years, I would have been able to save up enough to cover those funeral expenses and that I’ve never carried a balance on my credit card and did not intend to do so at my death. This devolved into a discussion about credit card bills and the economy. Other co-workers joined in and said that carrying a credit card was inevitable to make ends meet since there are so many expenses and bills to pay. Their comments later seemed to imply that I must be lucky not to have to carry a credit card balance. Feeling a little frustrated and like they were ganging up on me, I stupidly blurted out that people shouldn’t carry balances on their credit cards. I mean the interest rates on credit cards are usurious, the only way they get away from charging such usurious rates is by setting up headquarters in states which allow it, and then the credit card companies can export those rates to the rest of the country. I also, regrettably, said to my co-workers that if one couldn’t pay the balance in full, then they just shouldn’t charge it. Unless it was to pay for necessities like food and shelter, why would you subject yourself to such a high interest rate. There was a bit of a silence in the conversation, and I knew I probably should have just kept my mouth shut. I should stick to venting about financial matters anonymously on this blog! Thankfully, another co-worker changed the topic slightly and said that he preferred a whole life insurance because he wanted to leave his children a large amount of money. I don’t really think that’s a good reason to pay the extra premiums either, but I just nodded and smiled.

What is your opinion regarding term life insurance and whole life insurance? Do you discuss money matters with your co-workers? And, why do people carry balances on their credit cards when the interest rates are so ridiculously high?! =)

How Many Credit/Debit Card(s) Do You Carry?

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My co-worker was on the phone with her husband the other day. Apparently he was at BJs and had a lot of stuff at the check out line. When he was ready to pay, his debit card was declined. Just imagine that feeling: a long line of people waiting behind you, you with your month’s worth of groceries on the conveyor belt and your card doesn’t go through. Eventually the cashier put his items aside, and my co-worker’s husband called the bank and resolved the issue.

This isn’t a problem that I foresee facing. I carry 4 credit cards and a debit card. If I were at BJs (even though I can’t stand going to wholesale stores because of the lines) and my debit card or credit card was declined, I would whip out another card. So here are the credit cards that I generally carry and why:

Sallie Mae Mastercard– I like cash back and I get 5% cash back at the supermarket and the gas station with this card (up to $250 spend each month). I generally go to the gas station and the supermarket multiple times a month so it makes sense to carry this card with me. Plus, if I’m going to spend money there, might as well earn some cash back.

Rotating 5% cash back card– this will either be the Discover It Card or the Chase Freedom card. The rotating categories usually include, among other categories, home improvement stores, restaurants, and supermarkets. I’ll carry the card depending on whether the category includes stores that I frequent.

Target Red Card– Yes, I’m a fan of Target and I work near a Target store so I often do my shopping there. The Target Red Card gives me 5% off (not cash back).

Bonus Card– I don’t travel hack like many other bloggers do, but I do like to take advantage of some great credit card bonuses sometimes. If there is a great offer, then I’ll carry that card to meet the spending requirement.

Bank Debit card– I don’t generally use debit cards because I don’t earn any cash back. However, if I go to Aldi’s then I’ll use a debit card as they don’t take credit cards. I also carry my debit card because it’s also my ATM card if I want to get cash.

I know some people don’t carry credit cards at all because they know that they’ll overspend if they use credit cards. That’s fine. To each their own. So what would you do if you only carry one debit card and it didn’t work?

And for those who use credit cards, how many do you carry with you? I’m not asking how many credit cards you have (I know many credit card churners have A LOT), I’m asking how many you carry with you on a day-to-day basis.

Awhile back, I posted a similar topic, How Much is in Your Wallet, where I asked how much cash you guys carry and learned that I was in the minority in that I carry a decent amount of cash with me. It seems like most people don’t carry much cash if any. I thought about that topic this past weekend. We went to an aquarium and parked in the parking lot. We left at closing time so, of course, there were a lot of people leaving at the same time and ONLY ONE cashier. It was a $10 flat fee which makes me wonder why they didn’t just make you pay in advance. Anyway, there were multiple lines formed to get out and a very slow cashier. One thing that slowed the cashier down even more was that many people were paying with credit cards! They needed the cashier to swipe the card, hand them the slip, sign the slip and then open the gate! I gave him a $10 bill and was on my way.

Save Money While Holiday Shopping

credit: Freedigitalphotos.net by imagerymajestic

credit: Freedigitalphotos.net by imagerymajestic


Now I know that my last post put Black Friday and consumerism in a negative light. However, I honestly don’t have a problem with people trying to get a good deal. I know many people have to buy presents for friends and family during the holidays, so it really helps if they can get a bunch of things at low low prices. The consumerism mindset that bothers me is when people buy things for the sake of buying it, or buy things they really don’t need. I don’t have much shopping to do, but I will get some gifts for my immediate family and I am also participating in Secret Santa at work. So for those trying to save while shopping during the holiday season, here are a few things that I do:

Use a Shopping Portal

A shopping portal is a program that rewards you for shopping. They are generally run by companies that get a commission for sending you to the retailer’s website. The retailer gives these companies a referral fee for sending them business, and in turn, the portal gives You a portion of the fee to entice you to use it. There is really no reason I can think of NOT to use a shopping portal if you’re shopping online. There is no cost to you for using it.

One popular shopping portal is Ebates. If you sign up, you will get a $5 check. Currently, Ebates is running a special bonus during the holidays where you will earn $50 if you refer 2 of your friends who, in turn use the shopping portal and spend at least $25. They usually only give $5 for a referral.

Other shopping portals include Bigcrumbs and Topcashback.

Different shopping portals offer a different percentage cash back. Want to find the highest cash back? Go to Evreward.com .

Use a Cash Back Credit Card

If you have the Chase Freedom Card, they are offering 5% cash back on purchases at select department stores and at Amazon. With the Target Red Card, you get 5% off the purchase. Note: If you use a shopping portal and the Target Red Card, you will get 5% off the purchase for using the Target Red Card in addition to the cash back earned from your purchase for using the portal.

Coupon codes
Before buying anything, always search online for a coupon code or a printable coupon (if you’re going to a physical store). You can often find a coupon for free shipping or a discount for the store. If the store doesn’t offer free shipping, check to see if “ship to store” is an option to avoid a shipping fee.

Get a Discounted Gift Card
You can go to Cardpool.com to purchase discounted gift cards to various stores. For example, you can get 20% gift cards to Burlington Coat Factory and 25% off gift cards to Ann Taylor. Before you go to Cardpool to buy a gift card, go to Topcashback to get cash back for purchasing the gift card. Another site that sells discounted gift cards is Raise.com.

I will receive a referral bonus if you sign up for Ebates, Bigcrumbs Topcashback using the above links and make a purchase.

What are other ways to save when shopping during the holiday season?