Finance
When I got my first credit card, my dad gave me 3 pieces of advice. 20 years later, I still follow it.
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- My dad taught me a credit card is not an extension of your income — it’s credit the issuer expects to be repaid.
- When I got my first card, he told me to make manageable purchases and try not to carry a balance.
- He also warned me never to pay late and to use my credit card responsibly.
Once I graduated college, started working, and bought my first house, I decided it was time to get my first credit card. Once I had the card – and its solid credit limit — in hand, I envisioned how I would use that card to finish furnishing my new condo, buy airline tickets, or cover Sunday brunch.
I was casually having a conversation with my dad and I mentioned that I got a credit card. His response was less than thrilled. “A credit card? That is the quickest road to debt! You have to handle a credit card responsibly.”
Right now credit card debt is at an all-time high of over $1 trillion according to a report by the New York Federal Reserve. So he wasn’t wrong: Americans are carrying the highest level of credit card debt ever and paying the high interest rate charges that come with that.
After that conversation with my dad on how to responsibly use a credit card, here are three pieces of advice that I still use to this day, 20 years later:
1. Start with manageable charges
Instead of immediately charging that $2,000 dining room table, make reasonable charges that you can pay off quickly and won’t put you into debt. When you use a credit card to purchase an item you really can’t afford, you end up carrying that balance longer and watching it grow due to interest.
Understand that a credit card is not an extension of your income. It is an extension of credit that the credit card issuer expects you to pay back.
When I bought my new couch, instead of putting it on a credit card and making a series of monthly payments to pay it off, I watched it until it went on sale (40% off on Black Friday) and bought it with cash.
2. Pay the balance off every month
The optimal way to use a credit card is to pay the balance off every month so you are not in debt. With most credit card interest rates being in the double digits, carrying a balance every month actually costs you money.
Also, when you pay the card balance off every month, your credit utilization ratio stays low, which has a positive impact on your credit. If your utilization is over 30% it can have a negative impact on your credit score.
3. Never pay late
Once those credit card bills start coming in every month, there’s one thing you must do: pay at least the minimum amount due by the due date. My dad is serious about his credit, and so am I.
When you make a late payment, you may be charged a late fee (unless you have a credit card with no late fee), plus an interest payment on the unpaid balance. Late payments can also hurt your credit score.
When you create your online account, you can set up free text or email alerts that will notify you a few days before your bill is due. Or, if you have a good handle on your spending, take it one step further by signing up for auto-payment so you never have to worry about being late.
Find the Right Card for You Checking to see if you’re pre-approved for a credit card offer can help you find the right card while safeguarding your credit score. See our guide for the best credit cards with pre-approval for more information.
Finance
Drive Finance announces EGP 1.4bn securitisation bond issuance – Dailynewsegypt
Drive Finance, a GB Capital subsidiary and part of GB Corp’s financial division, has closed its fifth securitisation bond issuance, valued at EGP 1.4bn. This marks the second issuance under Capital Securitization’s fifth program, which aims for a total of EGP 5bn.
Following the previous issuance in December, this latest development highlights the company’s portfolio growth and investor confidence.
Ahmed Osama, Managing Director of Drive Finance, welcomed the robust investor response, noting that interest surpassed the issuance amount twofold. “This enthusiasm underscores our strong market position and our sustained creditworthiness amidst economic challenges,” he remarked.
Remon Gaber, Drive Finance’s Treasury Head, took pride in the issuance’s success, attributing it to the strategic diversification of funding sources. This approach has bolstered the company’s objectives, broadened its financing services, and extended its market presence, thereby boosting its share in consumer finance and factoring sectors.
The issuance comprised three tranches:
- First Tranche: EGP 546.8m, 13-month term, AA+(sf) rating.
- Second Tranche: EGP 644.9m, 36-month term, AA(sf) rating.
- Third Tranche: EGP 210.3m, 58-month term, A(sf) rating.
Commercial International Bank (CIB) played a pivotal role as the financial advisor, manager, arranger, and promoter. Arab African International Bank was the custodian, underwriter, and subscription handler. Legal advice was provided by the El-Derini Law Office, while Sherif Mansour Dabus–Russell Bedford conducted the audit. Middle East Rating & Investors Service (MERIS) assigned the ratings.
Finance
Finance union chief calls for ‘pause’ on bank branch closures for five years
A call for a five-year moratorium on bank branch closures North and South of the Border was backed by delegates at the Financial Services Union (FSU) conference in Belfast on Saturday.
The motion was one of a number adopted that expressed support for the safeguarding of access to cash and provision of financial services and advice, all of which were seen as important to communities and, in particular, older customers.
FSU general secretary John O’Connell said the scale of bank bailouts received after the 2008 crash continued to give the debate on branch closures a moral aspect.
“We need the banks to remember that it was the people in these communities who bailed out their business,” Mr O’Connell said. “We are not saying they can never close branches but we are saying it would be reasonable to pause the closures now for five years, so everyone can consider what is on the horizon.”
Roger James, representing the AIB sector, told the conference the issue of closures has had an “unbelievable” impact on staff over the years. He said opposition to additional closures was not just about protecting jobs but also about protecting communities.
“People need and want access to cash, access to services,” Mr James said.
AIB’s branch network in the North had shrunk from 32 to seven, he said, with the company suggesting the reduction had been driven by changing customer behaviour. But Mr James said “if you find a branch that’s open now and then find a staff member, all they can do is point you to a machine, so it is the banks that are driving people away”.
Wilma Stewart, a staff member at Danske Bank, said its network will have declined in size from 104 when she joined the company to 24 by June 6th when another four branches are due to shut. The reduction, she said, was “staggering”.
“What we need to see is the development of a blend of services,” Ms Stewart said, referring to a proposed balance of service provision between online, and branched through third parties, such as post offices.
“Many people are happy to do their banking online but no community or sector of business should be left without blended services,” she said.
In the Republic, the various banks closed 176 branches in the five years to September 2023. As of now, Bank of Ireland and AIB still have about 170 each with PTSB operating just shy of 100 in the wake of its takeover of parts of the former Ulster Bank network.
Tom Ruttledge, from the Bank of Ireland sector, said banks were “withdrawing services from locations because it suits their cost model, not because it suits their customers”.
Older clients, he said, often missed out on advice from staff that might have helped them make better decisions with regard to financial services and products.
Ali Agur, chief economist and head of prudential regulation at the Banking and Payments Federation Ireland, said he did not believe the decision to close a branch was “purely about a profit and loss decision”.
“Banking is a relationship business and AI is not going to build that relationship for you,” Mr Agur said.
Nevertheless, he said, the trend is areas like ATM cash withdrawals was clear with substantial declines both in terms of value and volume, while more recent entrants to the retail financial services market were piggybacking on the ATM network without contributing to the costs involved. “We need to recognise the reality of the situation.”
Finance
The Joy Of Money: Embracing Financial Freedom And Fulfillment
Money has a profound impact on our lives, and for many of us, money is very emotional. While it’s true that money can’t buy happiness, it certainly can provide the means to live a life of comfort, security, and fulfillment. Having money offers opportunities otherwise unavailable to you.
Understanding and embracing the joy of money goes beyond material possessions; it’s about achieving financial freedom and using it to enhance our overall well-being.
You will find me often encouraging women to build a positive relationship with money so that you can build your wealth and reap financial security. Having money is not greedy; it’s a means of self-care.
Financial Security: The Foundation of Peace of Mind
One of the most significant joys of money is the security it provides. Having a stable financial foundation means not worrying about unexpected expenses or emergencies. When your finances are in order, it’s easier to face life’s uncertainties with confidence.
When you have financial stability, you have peace of mind that allows you to put your attention on other things in life instead of being bogged down with financial stress. You can focus on more of the things in life that bring you joy, like relationships and pursuing your passions.
Freedom to Pursue Your Passions
Financial freedom opens doors to opportunities that may otherwise remain out of reach. Whether it’s traveling to new destinations, starting a business, or investing in hobbies, money gives you the flexibility to pursue your dreams.
This freedom isn’t about extravagance, rather it’s about having the means to make choices that align with your values and interests. The joy of waking up every day and doing what you love, without financial constraints, is immeasurable.
Generosity and Impact
Another aspect of the joy of money is the ability to give back. Financial abundance enables you to support causes you care about and make a positive impact on your community. Whether through charitable donations, volunteering, or helping a friend in need, the act of giving enriches your life and fosters a sense of purpose and connection.
Knowing that your financial contributions are making a difference can bring profound satisfaction and joy.
Personal Growth and Learning
Managing money effectively requires learning and growth. From budgeting and saving to investing and planning for the future, the journey to financial literacy can be incredibly rewarding. As you gain knowledge and confidence in handling your finances, you’ll find a sense of accomplishment and empowerment. This personal growth extends beyond finances, as the skills and discipline you develop can be applied to other areas of your life.
Enjoying Life’s Simple Pleasures
Money also allows you to enjoy the simple pleasures in life. Whether it’s a cozy dinner with loved ones, a relaxing weekend getaway, or indulging in a hobby, financial resources can enhance your everyday experiences. These moments of joy, often taken for granted, are made possible by the stability and freedom that money provides.
Embracing a Balanced Perspective
While it’s important to recognize that money isn’t the sole source of happiness, it undeniably plays a significant role in shaping our lives. Embracing the joy of money means appreciating the security, freedom, and opportunities it brings, while also recognizing the importance of using it wisely and generously. By fostering a healthy relationship with money, you can enhance your overall well-being and lead a more fulfilling life.
The bottom line is that it is key to strike a balance in your life. When you are enjoying the benefits of financial success while staying grounded in what truly matters is achieving balance. When you view money as a means to achieve your goals and enrich your life, rather than an end in itself, you unlock its true potential to bring joy and fulfillment.
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