Credit Offers

I didn't catch this right away, but in looking back over the past year, I can see, a "kahootzing" unfolding.  Clearly, the banks knew quantitative easing was coming to an end and interest rates would no longer be stagnate at ZERO.  Was this conjecture based upon past trends?  I don't think so, since this economic disaster, compared to the Great Depression and there is now a global economy.  This is no conspiracy theory, and no history that is comparative.  This is simply the way an economy of perpetual motion operates.

Since the interest rates plunged and remained at basically 0%, literally flat-lined for five years, banks have had to get creative to make money and keep folks interested in letting them "hold" their money.  In this time of low interest rates and job insecurity, the average folks don't have so much money to hold.  Once the Big Banks were bailed out, they could start making some interesting credit offers to get the perpetual motion rolling again.  Credit offers are not always made based upon a good credit history, but increased expenses, times of struggle, or even poor money management can be part of the equation.

I knew when the last long term CD matured, I would not renew it.  It wasn't a great rate, but it was by far better than 0.5% for 5 years.  Interestingly at that same time, I heard Abba speak of enlarging the tent, so a sizeable expense was about to take place.  As it turns out, two additions were added for about the same cost as the value of the CD.  Abba is so economical.  Now, here is how I got into the world of credit offers . . . The retailer of the building supplies offered a discount if one used their credit card.  Rather than just pay cash, I would actually be saving money to use their card with a discount, provided I paid the balance in full when the bill arrived.  The mature CD made that a simple task, but, it got my name in some sort of active credit card offer pool.

Suddenly, the bank that carries the one credit card I have had for over twenty years, offered balance transfers at 0% interest for a year, but there was a 4% transaction fee, up front.  The bank, which could borrow money at 0% interest could pass that savings on to me, but actually make 4% interest by calling it a fee.  The fine print was really great.  If I'd taken them up on this wonderful offer but didn't get it all paid back in the 0% time frame, the interest rates would soar on the remaining balance and my old card would then have a brand new interest rate.  The new credit card with sizeable charges had placed me in database with a presumed balance.  When these opening discounts or special rates are offered, the lender is planning on a balance to be carried, which is backed with statistics.

When I started my business, which had very minimal start up costs, the credit offers came pouring in.  All I had done was register my business name with the state.  I had credit offers before I had a bank account, which made me wonder . . .  The line of credit I was offered was enormous and clearly not commensurate with the possible, potential profit of a new business.  I was immediately offended.  I felt like they wanted to own my new business and me!

I could go on and on . . . but the point is, with every credit offer, came the reality of potential bondage.  Paying my monthly balance on a single card didn't bring new credit offers from every direction.  Signing up for a new line of credit and starting a business opened the door to an avalanche of offers, which for many, literally results in an economic avalanche.  These banks and credit companies know that!  They bank on it.

Tax Deductible

As we will soon be entering the tax preparation season, there are some things we might want to consider.  Actually, it's two major things to consider that apply to a number of areas of our life.  There is no free lunch and that includes tax deductions and credits.  Tax deductions or credits basically fall into two categories.  People and stuff.  When we receive a deduction or credit regarding a person in our life, that individual is one of the millions who is now collateral for the national debt.

A couple cannot file a joint return without a marriage license.  The marriage license is a contract between two people and the state.  Parents cannot claim their children without providing social security numbers of the children.  That has not always been the case.  I am 56 years old.  I did not need or acquire a social security card or number until I wanted a job and a driver's license.  A birth certificate with a social security card application is really quite recent.  I'd have to ask my ex-husband to be sure, but I don't think we had to list social security numbers for our kids on the tax returns, and I know there was no social security card application when filling out a birth certificate when I was having children.

When it comes to credits or deductions for people, that is literally assigning a monetary value to a human being.  Oh, we don't use that term, and for the most part, none of us even considered it, but with the rising national debt, and the requirement of documentation, the correlation should be obvious.  The statement:  "For social security and tax purposes -Not for identification" actually used to be printed on social security cards.  Now, for most any monetary transaction, we are asked at least the last four numbers of our "social."  How many times have you heard, "What are the last four of your social?"  That question literally makes me cringe, every time I hear it.

When it comes to deductions or credits involving possessions, the deduction is based upon a percentage of the payments.  I was getting my house in order, thinking now that I have one entire room dedicated to my business and one entire room for ministry, I'd be figuring my taxes differently this year.  Then it dawned upon me.  Without a mortgage, I have no percentage to figure to deduct the room.  Without a 501c3 the government doesn't even recognize this ministry.  The only figures our tax system is interested in when it comes to this ministry and my business are the figures of income . . . PERIOD.  And those are taxable!

As you prepare to figure your taxes in the coming, really consider the cost of the deductions and credits that are offered.