Using our credit cards wisely

The BSP recently released a reminder to the public to be wary of using their credit cards when traveling abroad. This is because cross currency transactions are not cheap and often end up being much higher than the actual conversion rate you had in mind or that you tried out on the conversion app on your phone.

It’s true actually, I remember thinking that the transactions on credit card purchases for goods and services abroad tend to be much higher than I anticipated when initially making the purchase. According to the BSP this is because there are several banks and agencies involved in cross country credit card transactions. Plus, let’s face it; banks make the bulk of their money from interest paid on credit card bills. This is why they will always push people to use plastic.

I understand the BSP warning and it makes total sense. After all, credit card debt can easily creep up on you and before you know it several little transactions all add up into one big insurmountable debt. However, that being said, we are slowly moving into a world where plastic seems to be the preferred method of payment in most places. People don’t tend to carry cash anymore and it always boils down to debit or credit card.

Personally, I prefer debit cards. This ensures that you don’t spend more than you have. However, there are still so many places (especially online) that don’t accept debit cards and only accept credit cards. So even if you want to pay via debit or cash, you don’t have the option. This is most especially true for airlines, car rentals, and hotel reservation sites, which is usually what we use our credit cards on.

Oddly enough, while I understand the need to be careful of overusing plastic, I also find myself wondering why banks don’t increase our credit limits considering the high inflation in the country. At least for cardholders who have good credit standing? I have been a founder member since 1991 of a prominent international bank and maintained an excellent credit record as well as being a triple AAA customer in the use of my credit cards with them, but in over 20 years, my credit limit has remained the same. I notice the pinch because the limit does not keep up the inflation of the prices of goods and services or the peso dollar conversion rate.

It really only troubles me whenever we travel abroad. We don’t travel very often, but whenever we go to the United States to visit relatives and friends we are almost always asked to use plastic wherever we go. The tickets first of all are almost enough to wipe out the limit on your card if you are traveling as a family. Plus you have to consider getting a hotel, a car, and other activities you want to do. You may already be maxed out before you even leave the Philippines.

Plus, in the US, they don’t like to transact with cash. They truly prefer debit or credit. I remember getting strange looks whenever I tried to pay for something with cash. Plus they inspect every single corner and crease of my money because they are just not used to seeing people pay in $100 bills anymore.

I think the only place cash is used commonly in America is in fast food or through the giving of tips for service. Even then though I’ve seen people swiping their debit cards for payment. I guess they just don’t like to carry cash around with them. The locals are fine because they are using debit cards and racking up debt. We, however, are spending more and racking up more charges on our credit cards.

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I am actually getting quite tired of reading about the wishy-washy Mayweather’s stipulations for making the super fight with Manny Pacquiao happen. It’s all starting to look like just ways for him to avoid the fight altogether, like he is just looking for ways out which is why he continues to make outlandish demands. Everyone knows that he is just doing what he does best — ducking.

At this point, the fight needs to just happen or not. The drama, the back and forth, and the teasing is getting old and I think we all know that it boils down to Bob Arum and Floyd coming to terms with a decision. We know Manny is ready at any time. Floyd needs to buckle down and make a choice. I think for the most part he is getting everything he wants so what more is there? Did he purposefully pick a date that he knew wouldn’t work to be able to say that he was willing but Bob Arum didn’t want to make it happen?

Who knows! Quite frankly it’s getting very boring indeed. I don’t want to get my hopes up anymore because it looks like this bout is never going to be.

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On a final note, as we spend the day preparing for Noche Buena and dinner with our loved ones, lets not forget the reason for the season. Merry Christmas!