Debit versus Credit

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  • Five Things to Do Before You Call Customer Service

    Five Things to Do Before You Call Customer Service

    Since December, I’ve spent more time on the phone with my internet service provider than I care to admit. Despite dozens of calls, a new modem and router, and a few appointments with a “qualified technician,” my home internet connection drops every 20-30 minutes.  Pretty annoying for someone who makes a living working from home!

    My internet woes haven’t been a complete loss. I now know all the words to La Bamba thanks to the time I’ve spent on hold, and I’ve also memorized all the buttons I need to push on the automated phone system. Every few days, I get to try to beat my previous record for how long it takes to get a voice on the other end of the line. More importantly, though, I’ve learned a few tips and tricks to make the experience of calling customer service a better one.

    Before you ever pick up the phone to call customer service, here are 5 things you can do to save yourself a ton of frustration.

    1. Gather your information.

    You know how it goes – before you can speak to someone who can actually help you, you’ll need to repeat your account number, mother’s maiden name, address, phone number, and favorite reality show to about 10 other people. So why not have that information on a Post-it note before you call?

    Other than your personal information, make sure you have any other related numbers close at hand. If you’re calling about a product, for example, have the serial number ready, or if you’re calling about something you ordered, know the order and tracking numbers.

    2. Make quick timeline.

    Which of these callers will get quicker results?

    Caller 1: “Well, I bought this ab roller awhile back, maybe a month ago. No, it was before Aunt Mary died, so it’s been 2 years. Or maybe just 1 year. Anyway, it hasn’t been working right — no, I’m not sure when it broke…”

    Caller 2: “I bought the ab roller on March 11, 2012. I used it 3-4 times a week until April 20, when the middle wheel fell off.”

    If you guessed Caller 2, you win! When you’re able to provide clear information without a lot of hemming and hawing, the customer service rep will know that you mean business.

    3. Define the problem.

    This should go without saying, but in addition to knowing when the problem started, you should also be able to describe the problem itself. Don’t be the person who takes your car to a mechanic because “it’s making a funny noise.” Do some research and try some basic troubleshooting before you pick up the phone. For instance, if your washing machine stops working, make sure it’s plugged in securely first. Ask yourself what specifically isn’t working – is it completely dead? Does it work until it reaches the spin cycle?

    The more details you have, the more answers you’ll have when you call customer service. They’re trained to ask a series of questions and start with the easiest solution first. There’s nothing more satisfying than saying, “I’ve already done that” and moving on to the next step without wasting your time.

    4. Understand your rights.

    If you demand a refund for something you bought in the 90s, you’re probably going to be disappointed in the outcome of your customer service call. However, you should also be aware of what is possible. Does your item or service come with a warranty? Is the problem beyond your control, or are you calling because your niece dipped your cell phone in the toilet again? The nature of the issue will greatly affect the available options.

    Some companies will insist that nothing can be done, but if you know better, ask to escalate the call. Speaking with a supervisor will often (though not always) result in a better outcome, as well as an opportunity to provide more details.

    5. Take deep breaths.

    If you’re calling customer service, chances are you’ll spend some time on hold. Don’t let it stress you out – grab a book to read while you’re waiting! Also, be prepared for the possibility that the call may not end the way you’d like it to, and tell yourself that you’ll remain calm.

    Losing your temper during a customer service call is one of the fastest ways to guarantee a less than desirable outcome. Treat the representatives with respect, even when you’re ready to slap them, and you’ll notice a big difference in the way you’re treated in return. While being prepared and friendly hasn’t fixed my internet connection issues, it has helped me dread the experience of calling my provider a little less.

    Do you do the 5 things above before you call customer service? Any other tips for making the experience as positive as possible? We’d love to hear your customer service stories!

    May 29, 2012
  • I’m Going To Do Some Side Hustling

    I’ve become a big proponent of earning more money to better yourself financially, over the past several years. The thing is, I’ve talked about it and thought about it and even briefly blogged about it, but I’ve never actually done any side-hustling myself. That all is about to change. If you’ve been following my blog for a while you know that I usually end up redesigning the site every year or so.  There’s a reason I keep redesigning it and also launched another blog about technology and gardening (my two interests outside of money). I really enjoy web design. I enjoy writing HTML and CSS and I enjoy learning new languages (I’m working on JavaScript at the moment).

    I’m sure you can see where I’m going with this. I’m going to start doing some freelance web design. I’ve got a few initial clients lined up (friends and family) and I hope to expand from there. I’m sure I’ll learn a lot along the way as I’m definitely not an expert but I really enjoy learning more about web development and I honestly think I can become an expert in front-end web development as I continue trying to earn more money on the side.

    All of that being said, I’m sure that there are plenty of freelance web developers out there and it’s probably not a market that will be easy to break into. It’s going to take hard work and dedication on my part to be successful, but I’m willing to give it my all. We’ll see where things go from here.

    Are any of you side hustling? What are you doing to earn more money? What are your plans with the extra money that you earn? Do you want to pay off debt? Take a trip? Save for retirement? Leave your thoughts in the comments below!

    May 23, 2012
  • A Quick Guide To Repairing Your Finances After College

    If you are the super sensible type of college grad who spent all of your time at school working hard to stay afloat, you might well have come out with your diploma as well as a nice pot of savings – or at least not too much debt.

    If on the other hand you didn’t (like 99% of your peers, myself included) then congrats, you have just arrived at that point in life where you need to repair and rebuild and start your journey to financial stability.

    Step 1: What Are Your Key Goals?

    When you have lots of debt and little income you have 2 overriding goals; so these are what we will focus on:

    1. To pay off your debts, so that you can begin saving.
    2. To repair your credit rating, ready for when you need it.

    So before we get started, your first task is to write down all your debts – this won’t be fun, but you need to know your starting point. So make a list of who you owe, how much and what it’s costing you (ie, interest rate).

    Step 2: Paying It Off

    You need to prioritise which debts are paid off first. In general store cards, then credit cards and overdrafts, loans etc come last.

    Paying off the high cost debt will save you the most money, money which can then be used to pay off more debt. As soon as a card is paid off you can destroy it and cancel the account.

    High Risk Strategy: If you can take a relatively low interest loan to pay off all of your cards this might be a good idea, it will save you money and give you a much more manageable repayment. Be careful though, if you end up taking out new cards you will just get further into debt. Only take this option if you are sure you can trust yourself and if the numbers add up. [Editor’s Note: Definitely high risk and not generally suggested — be careful!]

    Use Your Credit Cards

    Long term credit card debt is bad for your credit rating, so pay these off first. Once you have paid them off though, using your cards occasionally will help to improve your credit rating. Again, this is risky and should only be done if you trust yourself to pay off your balance in full every month.

    If you can’t use a card responsibly just get rid of it, slip ups will cost you, and you can’t afford that right now.

    Be Vigilant

    For the time being you are going to be constantly close to your limit, because all of your income will be working hard to pay off debt. It is important to watch your finances closely and be careful to avoid dipping into your overdraft (or at least going past the limit). Set aside 10 minutes every other day to review your progress so that you always know where you are.

    Step 3: Getting Them Paid Off

    If you have multiple debts, keep an eye on the balances. Sometimes it is worth paying off a smaller debt as soon as you can, even if it is not a high interest one. This isn’t optimal financially, but being able to cross off a debt is great for your motivation.

    In the long term you just need discipline; it can be very hard, but as long as you can see progress being made you should be able to stay motivated and keep at it.

    This article about becoming financially smart was brought to you by Ricky from CurrencyConverter.co.uk, home of the currency converter widget!

    May 11, 2012
  • Would You Rather Pay Now or Later?

    A few weeks ago, a friend asked about my decision to buy my son’s jeans from Old Navy, despite the fact that he’s outgrowing his clothes at an alarming rate.

    “Wouldn’t you rather buy cheaper jeans?” she asked. “That way it won’t hurt as much when you have to buy new ones in a month or two.”

    I responded, “I could do that, but it wouldn’t make much sense. The Old Navy jeans are only about $7 more than a pair from Walmart. They survive many more washings, which means I can sell them on eBay when he outgrows them. In the end, it works out about the same, and sometimes I even make a little money.”

    My friend seemed puzzled by my logic. “But if it’s the same either way, why not just spend less money upfront? Then you don’t even have to worry about selling the jeans to get back the extra money you spent!”

    The Now or Later Debate

    With most things in life, we can choose whether we pay more upfront, saving money later, or pay less upfront with the risk of owing money down the road. Whether we’re buying a home, choosing a college, or even picking out clothes for our kids, it’s important to weigh out the pros and cons of what we spend to make sure we make the best choices possible. Failure to do so can cost a lot of money in the long run!

    Imagine that you’re shopping for a car. You can either pay $12,000 for a car with an extended warranty, or you can pay $10,000 for the same car with no warranty. Many people would see that $2,000 difference and think, That’s a significant savings! I should go for the better deal! But is it really a better deal?

    If you buy the car with no warranty and it breaks down 6 months later, it could cost more than the $2,000 you initially saved to have it repaired. However, some people may argue that if the car doesn’t break down during the warranty period, you’ve wasted $2,000 that you could have saved instead. Neither of these viewpoints are right or wrong – it’s simply a matter of what works best for you and your financial situation.

    My Case for Spending Now

    When I have a choice, I will decide to spend now instead of later nearly every time. I would much rather pay a little more for something today, when I know I have the money, than gamble on having the money months or years from now. Sure, I have an emergency fund, but I don’t want to dip into it for something that shouldn’t be an emergency. Plus I never want to assume that my current financial situation is a promise that things will be that way in the future.

    The benefits of spending now aren’t always financial. When I buy my son’s jeans, I’m paying $7 more per pair because those jeans last longer. That means I’m not driving to Walmart at 9 PM to purchase new jeans because my son ripped a hole in the knee or the zipper broke in the wash. Also, I have a smaller risk of encountering two or more emergencies at the same time – like the time I totaled my vehicle, broke the door on my washing machine, and found out I was being dropped to part-time status at work, all in one week. Spending now means I’m spending on my own terms, not the terms of whatever fate may befall me.

    What About You?

    Do you prefer to spend now or later? Have you ever been burned when you tried doing things the other way? In what situations might it make sense to save money upfront?


    Andrea is a 29 year-old Licensed Clinical Social Worker and single mom who blogs about her journey out of debt at So Over Debt.

    April 18, 2012
  • Building Wealth at the Grand Opening

    The air had a strange mix of excitement and exhaustion. A woman and her boyfriend just ahead of us had spent the past two days under a makeshift tent cooking what looked like franks and beans, while a group of four behind us had huddled for the past day and a half, playing guitar and dozing in sleeping bags. I’d taken a friend along, a fellow addict, and we made two nights of it, a pair of urban boy scouts.

    And why wouldn’t we? These burgers were world famous and, when the doors flew open, they’d be free. Usually going for $2.49, the memory of their flavor had made scores of people camp out on the sidewalk.

    And that’s when it hit me. “Free”? If I ate as many as I could, would it make up for the two days of sitting out here, chatting away with my buddy, singing songs with the tent people? At $300/billable hour at my firm, not even close.

    Most people don’t value the number one resource that allows you to earn more money and is perhaps the single key to building wealth: Time. As such, the goal is not just to prosper, but also to do so while you’re still young enough to enjoy it.

    You’ll never get wealthy young at most jobs. No matter how much you’re making, and whether you’re waged or salaried, jobs are not made with you in mind. It’s, of course, the employer that benefits in the arrangement, as your income is tied with the time that you work. You may get that promotion, you may get that raise, you may even get that pension, but your compensation is always tied to a finite 24 hours each day.

    You’ll never get wealthy young with most investments. Most financial instruments are tied to performance over time. Your success, or lack of it, is dependent on the ebbs and flows of the market. Compounded interest, amortization, futures, bonds, stocks, 401Ks—all things we’re taught are good for our financial health—are all inextricable from Time.

    The road to true wealth and the freedom that it brings demands a permanent divorce of Money from Time, and that exists only in one and only one condition: entrepreneurship. When you’ve a system in place to consistently produce and sell, with or without you, you’ve severed any connection between the finite hours of an aging mortal and your stratospheric potential for income. A low-to-no maintenance business can be the wellspring of a lifetime of income that flows whether you’re asleep or awake—

    Or waiting in line for a burger.

    April 13, 2012
  • The Los Angeles Way of Life?

    I tweeted last night about my minor obsession with Quora. I find all of the questions and answers fascinating, and as you can see below in my tweet I have a special place in my heart for the personal finance area of the site.

    @Quora is my new online obsession. Mostly lurking right now, but love all the insights! Check out #personalfinance: b.qr.ae/Hjrloy

    — Joseph (@debitvscredit) April 4, 2012

    Yesterday I found a question under the personal finance topic that just about floored me. Someone making good money and living in LA asked why everyone around him/her seemed to have much nicer homes and cars than he/she did. I’ll quote the question for you, but you should read the question and the answers here (after you finish reading this post of course).

    I make $165,000 a year and I live in Los Angeles. I’m at the top of my industry but so many people in LA have more expensive homes and expensive cars. Do all of them just make more than me? What can I change to live that life? I don’t want more expensive things just for the sake of stuff, I want to live in a safe neighbourhood and let my child go to a great school. I want my family to have the life I dream of them having.

    What can I do to keep up with the Joneses? At first glance you’d think that’s what this person is getting after, but in reality it’s a bit deeper than that. The question really boils down to this: how can I give my family a great life? What stands out to me the most is not that this person wants to provide a better life for his/her family but that he or she is generally curious what kind of money you need to make to live the Los Angeles lifestyle.

    This is interesting because so many people confuse the appearance of wealth with actual wealth. It’s easy to make yourself look wealthy. Expensive cars can be financed, as can large houses, toys and vacations. Inevitably though all that debt will catch up to you if you’re not careful. The Los Angeles (or Hollywood) way of life is more of a facade than anything.

    Someone by the name of Andy Johns gave an impressive answer with some great advice to boot. He said:

    My advice to you is to not give in to the bullshit around you. Congrats on the career success. But don’t blow it by giving in to LA dogma.

    Spot on, Mr. Johns. Spot on.

    April 4, 2012
  • Infographic: Surprising Side Effects of Rising College Costs

    Infographic: Surprising Side Effects of Rising College Costs

    How many of you find this rings true? Have you found yourself delaying ‘life’ because of high debt incurred while getting an education?

    Infographic courtesy of onlinecollege.org

    March 22, 2012
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