I hit the credit card wall!

coolest · September 17, 2008 2:13PM

That's it! I have hit $5000 in credit card dept without even trying. So not another coin purchase, no mater how sweet the deal, until after I sell many.
Can I control my Habit til I have made enough sales to get back in the green?
I'm thinking if I put it in "ink" I will be easier to go cold turkey.

Cladiator · September 17, 2008 2:16PM

Dude, don't buy coins on credit. Bad idea 99.9% of the time.

Bochiman · September 17, 2008 2:24PM

Gotta agree with cladiator here.....only time I use the credit card to buy is when I am paying the entire amount/card off on the next invoice.
I don't carry debt for coin collecting (I am a collector, not a business, so that is my personal rule).

ChrisRx · September 17, 2008 2:25PM

What'ya got for sale?

Lakesammman · September 17, 2008 2:25PM

$5K?? I wish.

BAJJERFAN · September 17, 2008 2:27PM

DO NOT CHARGE what you can't afford to pay off in a month or two.

Broadstruck · September 17, 2008 2:28PM

You might get lucky as the way things are going the issuing Bank could be belly up before the first statement is processed

If you want to go cold turkey the best route is to donate your collection to the board in a giveaway!

pennyannie · September 17, 2008 2:29PM

I hear you. I charged a few coins along the way, it is so much easier. A few years back i had a lot more charged. I never intended to do it. I would find a coin i liked on the net, call them up and give them the credit card number. Everytome that i did it i had the cash. Somehow i never had it when the bill came because i found a coin local and spent the cash on the card instead of the CC bill. I paid the cards off and now when i find a coin i want i just tell them a check or money order is on the way. It takes at least a week longer to get the coin vs. using the credit card but oh well.

options26 · September 17, 2008 2:32PM

The proudest thing I have going is zero credit card debt. If I buy something on credit, I pay it off. If it was expensive I sell enough to cover it. You will regret paying for a hobby on credit, that I am sure of.

BAJJERFAN · September 17, 2008 2:35PM

<< The proudest thing I have going is zero credit card debt. If I buy something on credit, I pay it off. If it was expensive I sell enough to cover it. You will regret paying for a hobby on credit, that I am sure of. >>

Paying for the past always sucks.

Lakesammman · September 17, 2008 3:03PM

It's paid off every month - I charge only for the miles - just wish it was less.

Bochiman · September 17, 2008 3:07PM

<< It's paid off every month - I charge only for the miles - just wish it was less.

>>

I do the same....used the miles for a 1st class ticket to Hawaii, for the wife, last month

Hey! You have a plane of your own....what do you need the miles for????

YaHa · September 17, 2008 3:20PM

How does that work if you owe a credit card company some funds and they go belly up? Do you think your amount is erased? I don't think that's the way it goes. I may be wrong. Not to brag I have a Bank Of America Card that has a $25k limit on it, I use it once a month for Home Depot or things like that just to keep my acct fresh. Also if I ever need to get out of dodge I will cash in the 25k and hide in Thailand or somewhere like that.

BlindedByEgo · September 17, 2008 3:52PM

Money sure spends easier than it makes.

It sucked when in college sometimes I could only afford to eat if I put it on the card, and careful as I tried to be, the idea of paying 2 or 3 months later for that frickin' Taco Bell burrito pissed me off,

BBN · September 17, 2008 4:11PM

You need to get Dave Ramsey's book "Total Money Makeover"

BECOKA · September 17, 2008 4:17PM

CC's are dangerous. Convenient but dangerous.

Unknown · September 17, 2008 4:25PM

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EvilEmpire · September 17, 2008 6:02PM

It's WAY too easy to just call an 800 number, or visit a website, and give those numbers, then sit and wait for the coin to arrive.. it's almost Pavlov dog stuff, with the CC being the buzzer, the coin being the treat. Sometimes, depending on how slow the item was shipped and what part of the month I ordered it in, the bill came in before the coin. It's just too easy. Hell, I even have my CVV #'s memorized, though I only have two CC's, and a Paypal MasterCard debit card, which only allows you to spend what you have in the till....but then there's that damn Paypal Credit, don't even need to read or type a card #.....

Most comments, in regard to the OP's predicament, are not only spot on, but they are also advice which should be heeded, especially not using them for coin purchases (unless, as 1 or 2 members mentioned, the balance is paid off every 30 days, OR for the miles...). Not using CC's for coin purchases should have a 12 step program (not making sport of anyone using such programs, but rather stating it's an extremely hard thing to do, and it's very easy to stumble).

After having had to 'kick the habit' myself, the only coin purchases I now make with a CC are my subscriptions from the mint....and even then, I try to sell dupes or coins from series I lost interest in and moved on from. OR, if a mint issue catches fire quickly, flip enough to cover the bill. I never hold everything and wait and see...my rule is to recoup my cost, pay the CC, and THEN sit on what's left, as whats left was virtually free, as I did when I bought a bunch of '08 Rev '07 ASE's in NGC MS69ER for $149 early on. I sold enough at $300+ just 1 week after I got them, to have enough to be relatively happy now with the semi-sustained prices. I don't regret not holding them longer...hell, I realized more than twice what I paid for the ones I sold, and obviously, I got to keep more than half. What cost me nothing is now approximately $500-$600 for those ER69's.

Boy, how I wish I let MY CC hit the wall with THAT one...while the MS69 ER's were $149 ea, the MS70 ER's were $299 ea....but, c'est la vie. I'm still happy, paid the CC bill in full, and still have some to sell when they command what the '95-W goes for (simply due to mintage much less than 47,000 and it being the key to the Unc ASE set).

SaorAlba · September 17, 2008 9:47PM

<< DO NOT CHARGE what you can't afford to pay off in a month or two. >>

I don't charge what I cannot pay right away.

FatMan · September 17, 2008 9:53PM

Wow! Not to be harsh but you are a fool. In fact, anyone who carries balances on credit cards are fools. You cannot find higher interest rates anywhere. I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. Credit card companies have a love/hate relationship with me. Why feed the beast?

au58 · September 17, 2008 10:07PM

What is most appalling is this:

Assuming that everything else is equal, and if you make the minimum payments each month, your credit score will be higher than mine because I pay off the balance each month.

And people wonder why the economy is tanking.

BlackBeard · September 17, 2008 10:20PM

<< In fact, anyone who carries balances on credit cards are fools. You cannot find higher interest rates anywhere. >>

Some cards have decent rates. I have one I cherish (cardwise) that floats at or near prime. Last month it was at 5%.

BAJJERFAN · September 17, 2008 10:21PM

<< 

<< DO NOT CHARGE what you can't afford to pay off in a month or two. >>

I don't charge what I cannot pay right away. >>

I have 30 days grace on all new purchases. If I carry $100 into the next period its no big deal to me. I haven't paid a finance charge since Moby Dick was a minnow.

ebaytrader · September 17, 2008 10:31PM

<< CC's are dangerous. Convenient but dangerous. >>

Geez! I keep mine in my wallet and NOW you tell us??!?!?!?!

etexmike · September 17, 2008 10:36PM

As others here have stated, carrying a credit card balance for coins is a very very bad idea.

Just hide the card until the debt is paid off.

It is a lot better to miss what you think might be a sweet deal than to put yourself in a bind with debt for a few coins.

Mike

airplanenut · September 17, 2008 11:10PM

<< Wow! Not to be harsh but you are a fool. In fact, anyone who carries balances on credit cards are fools. You cannot find higher interest rates anywhere. I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. Credit card companies have a love/hate relationship with me. Why feed the beast? >>

I don't spend that much, but I like to think the CC companies dislike me, too. Only finance charge I ever paid was when a payment didn't go through because of a mixup with the bank account it was tied to

Oh, well... live and learn.

BBQnBLUES · September 17, 2008 11:27PM

Ok, No Lectures from me... since I ran up 42K in credit card debt back in '96. resulting in having to file Chapter 13

Just buy from sellers who offer a 60/90 day Layaway.

signed,
learned my lesson

garsmith · September 17, 2008 11:59PM

<< $5K?? I wish.

>>

ricko · September 18, 2008 12:42AM

Just say no to CC debt... (not to be confused with CC Morgans

) ... I pay the balance monthly.. and never buy coins on a CC... however, I have bought a CC with coins...

Cheers, RickO

Corey · September 18, 2008 12:49AM

<< 

<< Wow! Not to be harsh but you are a fool. In fact, anyone who carries balances on credit cards are fools. You cannot find higher interest rates anywhere. I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. Credit card companies have a love/hate relationship with me. Why feed the beast? >>

They would much rather you pay the interest charge as well, but they are still getting their money just by you using the card. I believe merchants pay out between 1.9 and 2.9% of every credit card purchase back to the card issuer. It's not a great return on their money, but it's well balanced by those that do carry a balance.

BAJJERFAN · September 18, 2008 12:56AM

When you get the fone sales pitch wantin to get you into a CC just tell the caller that you never carry a balance. They lose interest [no pun intended] and back off real quick.

Res · September 18, 2008 5:22AM

<< When you get the fone sales pitch wantin to get you into a CC just tell the caller that you never carry a balance. They lose interest [no pun intended] and back off real quick. >>

Better yet - get on the "Do not call" list and don't worry about telemarketers.

zeebob · September 18, 2008 5:29AM

CC advice aside.

I gather from your post you plan on having a bit of a sale? BST? Ebay? CoinZip? Stacks?

Keep us posted.

Cheers,

Bob

doh · September 18, 2008 5:31AM

Well at least you're smart enough to know to quit now before it gets worse.

badger · September 18, 2008 5:39AM

Hey, been there and done that. I justified the purchases due to timing of sale of a collection that I needed to complete my collection. Will pay off that card this month.

In this economic environment, deleveraging is prudent. Cash is king.

Badger

coolest · September 18, 2008 6:53AM

<< CC advice aside.

I gather from your post you plan on having a bit of a sale? BST? Ebay? CoinZip? Stacks?

Keep us posted.

Cheers,

Bob >>

Oh yes! I will be happy to keep you informed. I am waiting on a PCGS submission of 17 Jefferson nickel varieties, including the 46-D/D. I have a couple of rare Jefferson Proofs already graded ('39 rev of '40 and '40 rev of '38, both PF66). Also a 21-D half-dollar, nice looking PCGS VG10. I hope to find some more goodies hidden away that I can bare to part with. I will sell them on e-bay. Thanks!

pennyannie · September 18, 2008 7:04AM

Everything has its upside and downside. I am a credit card lover (not for coins, food or everyday items) I have owed credit cards from $0.00 to well over $250,000.00 dollars. Dealing with banks is a pain in the...

On a side note there is no way i should have ever been allowed to charge 300k in credit cards based on my income.

Coinosaurus · September 18, 2008 7:27AM

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card.

cinman14 · September 18, 2008 7:30AM

<< 

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card. >>

OK.......

Bochiman · September 18, 2008 7:34AM

<< 

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card. >>

Yep...and by buying a house when I did, when the market was on the increase, you can say that I supported an industry that was setting folks up for a big fall. It happened. But, you know what, some folks should NOT be given credit cards nor should they accept them. Fact of life. If I do it, and accept the consequences, then that is my choice. I use a credit card for ease of transaction, security, and peace of mind. I won't change that to get a debit card that, if compromised, can mean I will be without funds at an inopportune time. At least with credit cards, if they are compromised, I am not out my day-to-day cash and can access that for living. I can dispute the CC and still have money to buy bread for the family.

If someone rips off your debit card, grabs all your cash, it can take time to get the money back. Have fun with that

FatMan · September 18, 2008 7:36AM

<< 

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card. >>

That is, without a doubt, one of the most ridiculous things I have read in quite some time.

RYK · September 18, 2008 7:52AM

<< 

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card. >>

Okay, who hijacked Len's account? Was it the same person who got into Sarah Palin's email?

My problem with a debit card has always been that if the card (or number) is stolen, someone can easilty charge through my bank account balance, without me knowing, and causing legitimate checks to bounce, and result in much financial harm to me. The credit card companies make 2% off me. I get back 1%. I do not see the problem here.

WorldTypeSet · September 18, 2008 8:06AM

<< 

<< I spend about $200K a year on credit cards but always pay it off monthly. I have never paid a penny in credit card interest in my life, but get all the cash back benefits. >>

Customers such as yourself are known as "deadbeats" in the credit card biz. And by accepting all your cash back, you are tacitly endorsing and participating in a system which systematically engages in predatory and irresponsible behavior, recklessly creating mountains of bad debt and introducing much toxicity into the worldwide economy. You can point the finger at consumers driven by instant gratification, but we are all actors on the same stage. The fact is, your cash back, or airline miles, or whatever, are all being paid for gouging the public (even if they are stupid, idiotic, gullible, or whatever you want to call them).

I do not exempt myself, and I am seriously thinking about changing to a debit card. >>

The cash back is only a portion of what the CC company charges to the seller. Even if you pay off the entire balance, the CC company makes money.

I pay off my balances every month, and my CC companies love me.

Boom · September 18, 2008 8:27AM

$5K credit line = "the wall"?

You're kidding, right?

originalisbest · September 18, 2008 8:29AM

Maybe, but not a bad wall to hit. If I got crazy with a cc and spent to a max of $5,000, better that than to max out at 18k. And so forth.

Agree completely about preferring a cc to a debit card.

Boom · September 18, 2008 8:32AM

5K - is not an unreasonable or unmanagable amount!

In other words, 5K today is not an unclimable mountain.

Things could be A LOT worse.

Play your cards right coolest and you'll be just fine!

anablep · September 18, 2008 9:06AM

Pay it off as quickly as you can and be careful!

Credit cards are a dangerous, but sometimes necessary convenience.

Boom · September 18, 2008 9:19AM

Credit cards are fine so long as you're logical/ responsible with them.

Go crazy with them and you'll find yourself in way too deep real quick!

stman · September 18, 2008 9:22AM

It sure is nice to have so many online financial advisers!

Boom · September 18, 2008 9:23AM

In the "old days" people had to apply for loans.

Nowadays, lenders place credit cards in too many young peoples' hands
that have not yet learned how to budget themselves hence quickly finding
themselves in way in over their proverbial heads!

This is just one HUGE reasons for the state of The Economy TODAY!

originalisbest · September 18, 2008 9:25AM

Nothing wrong with the advice given here, stman.

I hit the credit card wall!

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