Hello All :I was going through a list of articles today and I couldn't believe my eyes! Yes, it's true our national financial gurus/advice givers have come up with another brain storm - "use your credit cards to pay your rent" ! As sited in the article below the premise is to charge your rent to your card and pay it off each month if you are in good financial shape, and capture the rewards points.
There is a number of flaws in this thinking: 1. Most people who are in good financial shape do not rent, but rather own property, 2. When you run up your credit, even if you pay it off at the end of the month affects your FICO score, 3. Most people do not have the discipline to pay off their card each month, so aren't we creating another financial tsunami, or it least adding to the coming credit one?
As most of you know, who have been a reader of this blog, I called this sub-prime tsunami 12 months before it happened. I am now forecasting 2 more I see on the not to distant horizon:
1. Credit & Credit Card Collapse: When people have to pay the mortgage to keep their homes, they live off their credit cards for food, clothing, utilities etc. Eventually the money runs out and not only due they default on credit obligations, but the home loan is not far behind, so be on the look out for another down turning in housing.
2. The US Dollar: We are in deep trouble folks! Not only are super models asking to be paid in Euros, but for the first time in history the Canadian Dollar is at parody with the US Dollar. I read recently that Canadians are traveling to the Northeast US for vacations because they get more for their dollar! Unfortunately we are part of a global economy losing our sovereignty bit by bit each day. The Chinese have threatened to blow up our economy by pulling out of the US Dollar, the Arabs are talking about switching from the US Dollar to the Euro has their stand for oil trading, and the icing on the cake- the Federal Reserve is posturing to cut interest rates again. You my be saying, Jim, that's great cutting interest rates will help the economy right? Wrong! It will further weaken the dollar, and cause our resources to become a "K-Mart blue light special" for foreign investors.
Finally, to illustrate how the dollar has lost much of its value ponder this. In 2002 the Euro was worth .88 to the US Dollar, 5 years later the Euro hit a high of $1.50 against our dollar.
So as you can see in order for you and your family to survive this unwanted restructuring of our
countries finances, you must become a leveraged investor through short term investing. Please visit my web site www.JGAGE.com and learn about these exciting avenues of financial security.
Be well & to your success,
Financial tip of the day: Charge the rent to your credit card?
Charging the rent to your credit card sounds insane -- it seems like it would be the eighth deadly sin, tied with going to a payday lender to get gambling money.
But as the New York Times points out, the strategy can be great if you're in good financial shape: If you pay off the balance each month you pay no interest, and you can rack up rewards on your credit card -- possibly round-trip airfare anywhere in the country each year if you have high rent!