“* U.S. Tax revenue: $2,170,000,000,000 * Fed budget: $3,820,000,000,000 * New debt: $ 1,650,000,000,000 * National debt: $14,271,000,000,000 * Recent budget cuts: $ 38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget:
* Annual family income: $21,700 * Money the family spent: $38,200 * New debt on the credit card: $16,500 * Outstanding balance on the credit card: $142,710 * Total budget cuts: $385 Got It ?????
OK now Lesson # 2:
Here’s another way to look at the Debt Ceiling: Let’s say, You come home from work and find there has been a sewer backup in your neighborhood….and your home has sewage all the way up to your ceilings. What do you think you should do ……. Raise the ceilings, or pump out the crap?The choice is coming Nov. 2012 .
Science comes to the aid of marketing in an awesome way.
Read on.
“
Pole has a master’s degree in statistics and another in economics, and has been obsessed with the intersection of data and human behavior most of his life. His parents were teachers in North Dakota, and while other kids were going to 4-H, Pole was doing algebra and writing computer programs. “The stereotype of a math nerd is true,” he told me when I spoke with him last year. “I kind of like going out and evangelizing analytics.”
As the marketers explained to Pole – and as Pole later explained to me, back when we were still speaking and before Target told him to stop – new parents are a retailer’s holy grail. Most shoppers don’t buy everything they need at one store. Instead, they buy groceries at the grocery store and toys at the toy store, and they visit Target only when they need certain items they associate with Target – cleaning supplies, say, or new socks or a six-month supply of toilet paper. But Target sells everything from milk to stuffed animals to lawn furniture to electronics, so one of the company’s primary goals is convincing customers that the only store they need is Target. But it’s a tough message to get across, even with the most ingenious ad campaigns, because once consumers’ shopping habits are ingrained, it’s incredibly difficult to change them.
There are, however, some brief periods in a person’s life when old routines fall apart and buying habits are suddenly in flux. One of those moments – the moment, really – is right around the birth of a child, when parents are exhausted and overwhelmed and their shopping patterns and brand loyalties are up for grabs. But as Target’s marketers explained to Pole, timing is everything. Because birth records are usually public, the moment a couple have a new baby, they are almost instantaneously barraged with offers and incentives and advertisements from all sorts of companies. Which means that the key is to reach them earlier, before any other retailers know a baby is on the way. Specifically, the marketers said they wanted to send specially designed ads to women in their second trimester, which is when most expectant mothers begin buying all sorts of new things, like prenatal vitamins and maternity clothing. “Can you give us a list?” the marketers asked.
“We knew that if we could identify them in their second trimester, there’s a good chance we could capture them for years,” Pole told me. “As soon as we get them buying diapers from us, they’re going to start buying everything else too. If you’re rushing through the store, looking for bottles, and you pass orange juice, you’ll grab a carton. Oh, and there’s that new DVD I want. Soon, you’ll be buying cereal and paper towels from us, and keep coming back.”
The desire to collect information on customers is not new for Target or any other large retailer, of course. For decades, Target has collected vast amounts of data on every person who regularly walks into one of its stores. Whenever possible, Target assigns each shopper a unique code – known internally as the Guest ID number – that keeps tabs on everything they buy. “If you use a credit card or a coupon, or fill out a survey, or mail in a refund, or call the customer help line, or open an e-mail we’ve zsent you or visit our Web site, we’ll record it and link it to your Guest ID,” Pole said. “We want to know everything we can.”
Also linked to your Guest ID is demographic information like your age, whether you are married and have kids, which part of town you live in, how long it takes you to drive to the store, your estimated salary, whether you’ve moved recently, what credit cards you carry in your wallet and what Web sites you visit. Target can buy data about your ethnicity, job history, the magazines you read, if you’ve ever declared bankruptcy or got divorced, the year you bought (or lost) your house, where you went to college, what kinds of topics you talk about online, whether you prefer certain brands of coffee, paper towels, cereal or applesauce, your political leanings, reading habits, charitable giving and the number of cars you own. (In a statement, Target declined to identify what demographic information it collects or purchases.) All that information is meaningless, however, without someone to analyze and make sense of it. That’s where Andrew Pole and the dozens of other members of Target’s Guest Marketing Analytics department come in.
At best I would go for Debit cards, the reason being if you have money you spend and do not spend anticipating income.
However to day it becomes difficult with out using either Credit/Debit Cards.
Though the chances of your bring fleeced by processing fees and cumbersome Billing Process,there are people like my daughter who has never paid a fine or excess in addition to using the Card to its fullest .
The selection of credit card is difficult.
I have come across some information which I am reproducing below.
“CardRatings.com is the most comprehensive free source for comparing credit card offers and has helped millions of consumers research and find the best credit cards. If you are in the market for a new card, choose from among our featured cards below and apply easily and securely online.
Transfer your higher rate balances during the first 30 days your account is open and you will pay no balance transfer fee! After that, the balance transfer fee is 3% of the amount transferred with a minimum of $5
0% Intro APR for up to 12 months – a variable APR as low as 11.99-21.99% after your 0% ends
Slate with Blueprint helps you pay down your balances faster and save on interest
When a thief forced you to take money from the ATM, do not argue or resist, you might not know what he or she might do to you. What you should do is to punch your PIN in the reverse…
Eg: If your PIN is 1234, you punch 4321.
The moment you punch in the reverse, the money will come out, but will be stuck into the machine half way out and it will alert the police without the notice of the thief.
Every ATM has it; It is specially made to signify danger and help. Not everyone is aware of this.
Thanks Kumar
In 2006, an e-mail chain letterhoax circulated that claimed a reverse PINduress code system is in place universally.[11]American Banker reported on January 2, 2007 that no PIN-reversal duress code is used on any ATM as of that date. In July 2008 the hoax was still circulating in Australia with the text:
If you should ever be forced by a robber to withdraw money from an ATM, you can notify the police by entering your PIN in reverse. For example if your PIN is 1234 then you would put in 4321. The ATM recognizes that your PIN is backwards from the ATM card you placed in the machine. The machine will still give you the money you requested, but unknown to the robber, the police will be immediately dispatched to help you. This information was recently broadcasted [sic] on TV and it states that it is seldom used because people don’t know it exists. Please pass this along to everyone possible. Australian Federal Police. AFP Web site: http://www.afp.gov.au
The same kind of e-mail chain letterhoax is still circulated in India and other parts of the world.
Were the system implemented, PINs that are reversible such as 5555 or 2112 then would be unavailable so that false alarms would not occur. Moreover, PINs that are semi-reversible such as 5255 or 1241, where the first and last numbers are the same, would be something to avoid as well so that accidental alarms would not be triggered by mistakenly switching the middle numbers.
Diebold, a manufacturer of ATMs, states on their website that no such emergency alerting system is currently in use. They cite an article in the St. Louis Post-Dispatch which claims bankers oppose the reverse-PIN system out of concerns that “ATM users might hesitate or fumble while trying to enter their PINs backwards under duress, possibly increasing the chances of violence.” Diebold further states that they would be willing to support such technology if their customers (presumably banks) request it.
Always pay close attention to the ATM and your surroundings. Don’t select an ATM at the corner of a building — corners create a blind spot. Use an ATM located near the center of a building. Do your automated banking in a public, well-lighted location that is free of shrubbery and decorative partitions or dividers.
Maintain an awareness of your surroundings throughout the entire transaction. Be wary of people trying to help you with ATM transactions. Be aware of anyone sitting in a parked car nearby. When leaving an ATM make sure you are not being followed. If you are, drive immediately to a police or fire station, or to a crowded, well-lighted location or business.
Do not use an ATM that appears unusual looking or offers options with which you are not familiar or comfortable.
Do not allow people to look over your shoulder as you enter your PIN. Memorize your PIN; never write it on the back of your card. Do not re-enter your PIN if the ATM eats your card — contact a bank official.
Do not wear expensive jewelry or take other valuables to the ATM. This is an added incentive to the assailant.
Never count cash at the machine or in public. Wait until you are in your car or another secure place.
When using a drive-up ATM, keep your engine running, your doors locked and leave enough room to maneuver between your car and the one ahead of you in the drive-up line.
Maintain a supply of deposit envelopes at home or in your car. Prepare all transaction paperwork prior to your arrival at the ATM. This will minimize the amount of time spent at the machine.
Closely monitor your bank statements, as well as your balances, and immediately report any problems to your bank.
If you are involved in a confrontation with an assailant who demands your money, COMPLY.
Source: The Electronic Funds Transfer Association, and the Los Angeles Police Department.
Keeps track of the Reward Points accruing to her, en-cashes them in time.
Selects products/out lets where she will get the Best Buy.
She is loyal to a particular Credit card.
I may add the following points as well.
Do not leave the card to a waiter or gas Station Attendant to effect payment.
Personally handle the transaction and see that the Decoder comes to normal settings before you leave.
Do not enter the ATM’s when it is crowded; if possible enter when it is empty.
See to it that the ATM Screen flashes Home Screen before you leave.
Ask for balance statement only if you must.
Never leave your balance slip in the ATM kiosk.
Now read on for Professional advice.
Credit Card.
Still, the fine print of how to use credit cards remains a mystery for many. Every year, hundreds of credit card users complain about being charged excessive fees or about receiving abusive calls if they haven’t paid their credit card bills for a long time. Complaints from credit card usersreportedly topped the list of grievances handled by India’s central bank between 2009 and 2010.
Banks and card issuers give users all the information they need in the “terms and conditions” that come with the cards. But consumers tend to overlook the fine print and largely rely on what the credit card salesperson tells them at the time of purchase. And they are unlikely to draw full attention to the many catches, preferring to focus on the positives of owning a credit card instead.
Ultimately, it’s up to the credit card users to know what they are getting into. Here are five things you should know about your credit card that you are unlikely to hear in a sales pitch:
The long list of fees: Understanding the credit card statement seems to be a major hurdle, said Jairam Sridharan, head of consumer lending and payments at Axis Bank in Mumbai. “I don’t understand how you calculated the interest or fees’…this is the most common problem people face,” he said. So make a point of finding out what all the charges are in advance.
If you are offered a “free card” or one with no annual fees, make sure the fee doesn’t kick in after the first year or two. It’s also a good idea to find out whether there are joining fees and how much you’d have to pay for late payment charges, cash advance charges (applicable on withdrawals from an ATM), and charges for spending more than your credit limit.
Some of the highest fees are charged when you don’t pay your credit card bill in full by the due date. You may have to pay an interest of up to 42% on the unpaid amount, plus a service tax of 10.30%. You may also lose your interest-free period for the next cycle if you haven’t cleared all your bills in time.
In case you haven’t even paid the minimum amount due per month to the credit card company late payment charges will be levied. These are typically 500 rupees ($10.5) to 600 rupees foroutstanding amounts of 10,000 rupees to 20,000 rupees. For greater amounts, the fee is higher.
If you use your credit card to withdraw money from the ATM, you may have to pay your credit card company or bank 3% of that amount, or a minimum of 300 rupees ($6.3), plus interest.
Why your credit card matters for your car loan: Did you know that your chances of getting a home or car loan depend on your credit card usage? If you didn’t, now you do.
Here’s why: The credit card usage of individuals in India is tracked by an independent agency that prepares a “credit score” for each individual. This score is basically a snapshot of your credit worthiness, a high score showing that you are highly likely to pay back your loans and a low score that you are not. The credit score, drawn up by the Credit Information Bureau India Ltd., is based on factors like how promptly you pay your credit card bills and how many cards you have. Consistently late payments or too many cards would result in a lower score. The credit score ranges from 300 to 900 and is constantly reassessed.
“When you apply for (home or car) loans, your Credit Card Information Report and your score are very critical elements and indicate your financial discipline,” said Arun Thukral, managing director at CIBIL.
To keep your score high, “avoid spending closer to the credit limit,” said Parag Rao, a senior executive and head of the credit card division at HDFC Bank Ltd. “A credit card should not become a means of financing your day-to-day finances,” said Mr. Rao.
As a business owner, you should understand the importance ofcredit card processing or a merchant account. It doesn’t matter whether you operate your business in a physical location or over the internet, your customers want to pay you with credit and debit cards. For internet based businesses, however, if you don’t accept credit cards you may as well not bother. Who wants to go through the hassle of mailing a check or money order when buying something online?
Here are some general tips to help you avoid problems with your merchant account or payment processing providers:
Most online business owners use online merchant accounts to process credit cards. Do not wait until you need to process a credit or debit card to set it up because it can take a few days before your new merchant account is usable. Online credit card processing is generally faster to set up than traditional bank merchant accounts, but it’s rarely instant, and you want to be prepared.
Review and Understand Your Credit Card Processing Fees.
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