Life’s Curveballs

When I started this blog, I thought about calling it “Life’s Curveballs,” because one way or another the cause of financial distress is often the result of unforeseen circumstances. Be it the loss of a job, a health or medical issue, an unexpected home or vehicle repair, the birth or death of a family member, a wedding or divorce, or even a global credit crisis. I thought that a discussion around the reasons for distress might be more interesting than simply talking about credit related matters, however, I settled on “Ask the Credit Brain” because I felt that personally I could add more value to a financially geared discussion than a psychological one (given my background). Nonetheless, I still feel that the prior discussed theme “life’s curveball’s” is an incredibly interesting one and directly correlated to Credit Issues. As such, I found this article on MSNmoney quite apropos because Deborah’s downward spiral didn’t really begin until she lost her job – curveball!

Help! My debt is killing my dream

August 12, 2008


…Years ago, Deborah got a credit card, thinking she would use it only to fund the business she so badly wanted to start. But shortly thereafter, she found herself out of work and used the card to buy food and pay the rent. She racked up $5,500 in charges, then missed or was late on several payments. As increased interest charges and late fees kicked in, the balance on the card ballooned to $9,000, and Deborah couldn’t stay current with even the minimum payment… more


2 responses to “Life’s Curveballs

  1. Dear Brain,
    I see many people with wallets full of different credit cards. Is there any reason why I should have more than one?

  2. dear mystery guest,

    there are a couple of obvious reasons for carrying numerous cards:

    1. to separate personal expenses from business expenses
    2. if one of the cards is American Express, Diners, or Discover, you may need an additional card (Visa or MasterCard) because the former are not accepted everywhere
    3. certain cards offer different benefits such as points or cash back

    …and then there are the not so obvious:

    4. if you travel internationally on a frequent basis, you may want to have a card in the local currency so as to avoid exchange rates and conversion fees
    5. to help build your credit score / rating, it is helpful to pay off your card on-time and in-full every month. you could use a separate card that you only charge minimal payments to each month, with the understanding that you will pay it off. then use another card as your primary account.

    You must asses your needs and choose what’s most appropriate for your situation.

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