Cash is still king and why you shouldn't fully rely on your debit card

There's nothing that will spoil a shopping experience as much as hearing the dreaded words, "declined" when paying for a purchase after a long, hot work-day.

Yesterday, while using my debit card for a relatively small purchase, my card was declined. Shocked and dismayed as I mumble to myself in disbelief while a long line of irritated customers sighed as I insisted the clerk retry my card, it failed me when I needed it. Annoyed with myself that I didn't have more than five dollars cash in my wallet, I defaulted to my credit card. Knowing there was a large amount of funds in my savings account that I was trying to accesses, I tried again at another store and still heard the dreaded word, "declined" from the store clerk.

I called the number at the back of my card (the bank shall remain nameless) and they informed me that my "card was compromised" and my limit for purchases had been reduced to $200. Although I pressed for an explanation of why, the call centre rep simply repeated the statement and told me I had to get into my bank to get a new card. Easy for him as he's not the one working during banking hours making it impossible for me to get a new card this week. Further more, the purchases I was trying to make were both under $200.

Lesson learned: folks, because we're "protected" from fraud on our debit and credit cards, these companies and the banks are flagging accounts quicker than ever and shutting down access or reducing limits more and more. Without a debit card and no time off to get to my bank, I of course have no ability to access cash either. Thank goodness I have two back up credit cards to make it to my next day off.

Take a moment today and ensure that you have a reasonable amount of cash on hand that could take you through a long weekend (God forbid debit and credit card terminals weren't working - what would one do?) And, ensure that you have at least two credit cards ideally both with a zero balance.

Be cautious when using your credit card at gas station pumps

On a recent trip to Toronto, I had to gas up my rental car. To avoid an umbrella-less dash to the store during a rain storm, I thought I'd just use my credit card at the self-serve pump. I inserted my MasterCard and the clerk chimed in over the loud speaker, "the credit card option isn't working - you'll have to pay inside."

So I did, paid with cash, thought nothing of it and went about my day. Until, I received an email alert (my MasterCard sends me an email alert when there's a transaction on my account) for a $100 purchase. I called MasterCard to find out what the charge was and they told me it was ESSO, the gas station putting a hold on my account. Even though the machine supposedly didn't work.

Again, I thought nothing of it and went about my life. Today, I logged onto my account and saw there was a $25 charge from the date in question. I called MasterCard and after a reasonable amount of time (but still a wasted 20 minutes of my life), they're reversing that charge with follow-up proof of my cash paid receipt.

I'll definitely think twice about using my credit card at a self-serve pump in the future and also a reminder to keep all receipts.

Apartment hotels offer a home away from work

Major hotel chains are expanding their all-suite or extended-stay brand lodgings.

Great article by BERT ARCHER. Check it out here - http://www.theglobeandmail.com/life/travel/apartment-hotels-offer-travellers-a-home-away-from-work/article1540787/

Mark Carney signals interest rates to rise

‘With recent improvements in the economic outlook, the need for such extraordinary policy is now passing,’ Bank of Canada says.

Read the full article here in today's Globe and Mail online - http://www.theglobeandmail.com/report-on-business/economy/mark-carney-signals-interest-rates-to-rise/article1540317/

If you haven't pulled out and dusted off your mortgage statement recently, now is a great time to have a look. Do you have an interest rate high enough that it might justify breaking your mortgage, paying the penalty and getting in at a lower rate? Perhaps you've been sitting on the variable vs. fixed rate fence and might be wondering if you should lock in?

Call your banker for options and remember to shop around. There's a few banks out there offering 2% plus cash back if you bring your mortgage to them. But of course, they've capped the offer and have their limits, so make sure to read the fine print as always and crunch the numbers.

You'll have to call your bank to find out what your penalty would be if you broke your existing fixed term mortgage, but you can get online and play with different interest rates and even do some pre-remortgage shopping.

A few calls could potentially save you thousands of dollars. Have a look at your mortgage details today.

Finding the motivation to melt your mortgage

April 9, 2010

JENNIFER WILSON-SPEEDY

YOURHOME.CA EDITOR

Who wouldn’t love to shave a few years off their mortgage payments? Burn My Mortgage aims to do just that, casting families in the GTA to participate in the new W Network series, billed as “home finance meets The Amazing Race.”

Check out the full article at: http://ow.ly/1wsm6

Why are Canadians taking on more debt?

The recession, depending on where you lived in Canada, was tough for many, but I think opened our eyes to one's true needs vs. wants. I was proud of the many articles and conversations eliciting chats about watching our spending, cutting back or what I like to call, "intelligent frugality". Apparently though, the lessons were short lived.

According to the Globe & Mail this morning, CIBC economist Benjamin Tal said, "As of February, household credit was up by more than 7 per cent from a year earlier – more than three times faster than income growth.

The debt-to-income ratio, as a result, hit a record 147 per cent in December, and is accelerating at the fastest rate since the mid 1990s." Here's the full article: http://www.theglobeandmail.com/report-on-business/economy/debt-will-bite-consumers-report/article1520029/

Consider this the next time you're thinking of buying something on credit that you don't absolutely need - how long do you want to be a slave to your lender? When I was in the financial industry, I'd ask my clients a question: What does more money, less debt mean to you? Of the thousands of answers I received over the decade I was in the biz, the answers varied (more vacations, putting the kids through school, being able to retire, etc.), but there was one common theme as I questioned further. Every root answer was the same - freedom.

So, if we all want more freedom - what money can buy - why then, do we continue to fall prey to financial slavery?

Is this a good time to lock in or refinance your mortgage? (from the Globe)

In case you missed yesterday's mortgage rate hike announcement (by three of Canada's banks), check out the Globe at:

www.theglobeandmail.com/report-on-business/mortgage-rate-boost-signals-rock-bottom-era-is-over/article1516497/

Also, there's an interesting forum with many thoughtful points on the fixed vs. variable debate at:

www.theglobeandmail.com/globe-investor/forums/globe-investor-1_personal-finance_this-good-time-lock-refinance-mortgage/?plckFindPostKey=Cat:e528746c-3414-401a-b14b-50247e3bdf01Forum:726cb897-65e7-4529-a1da-c5192c9aa85aDiscussion:cc7f909c-5c02-4956-b7c8-b98ab2b316dfPost:24b2cdda-159a-44e7-b70b-39586574d225