Cost to live in SE Asia

[Ray]

Careful with that concept, Mr. Capstone.  Be mindful that credit cards can be canceled at any time, for any reason.  I understand (and applaud) where you're going with that, but don't be surprised when your issuer suddenly shuts you off.

What you're doing certainly helps maintain a good credit rating (and is sound personal fiscal policy), it does NOT improve your credit scoring in any fashion whatsoever.

Says who?

I have been doing exactly what Cap is doing for most all of my adult life. I charge purchase on my cards and pay off the balance due each month, avoiding interest charges while earning points on rewards cards.

Having a zero balance definitely DOES improve your credit score. My average score of all three major credit bureaus is 792 with a high score of 823.

My wife has a charge card with a major department store and they are always offering 15% off of purchases if you use your card. They accept payments on the card balance at the register also.

What she does is make a purchase with her card, get the 15% discount, and then turn right around and pay off the balance in cash while she is still at the register. That way she never carries a balance, never pays interest, and still gets the 15% discounts.

With a high credit score, you get all kinds of special offers from some of the card companies. For example, I could use their purchase checks to draw $25k in cash and pay zero interest for 12 months for a fee of 2% (or $500). Try getting a one-year unsecured loan like that from a bank or credit union.

Also keep in mind that even when you aren’t paying interest or fees on your cards, they still make some money in fees from the merchants.

And I have NEVER had a card cancelled!

Ray

[Capstone]

Careful with that concept, Mr. Capstone.  Be mindful that credit cards can be canceled at any time, for any reason.  I understand (and applaud) where you're going with that, but don't be surprised when your issuer suddenly shuts you off.

What you're doing certainly helps maintain a good credit rating (and is sound personal fiscal policy), it does NOT improve your credit scoring in any fashion whatsoever.

Plus, as an aside, you might want to give your credit card issuers a heads up, especially when you travel internationally.  Nobody wants an unexpected transaction decline...especially when you're in Timbukthree.

As Ray has also experienced, I have been practicing this concept for pretty much my entire adult life and have never had a credit card canceled yet and have an outstanding credit score to boot. However if American Express sees fit to cancel my Delta Reserve card then no problem, I will just move onto another card which offers comparable rewards and reap the same benefits from the same practice.

You are right about contacting your credit card company before going on a trip. American Express as well as my Visa card issuer (American Express is not accepted hardly anywhere in China) have it noted on file that I make frequent trips to China, plus before each trip I fill out an online form notifying them that I will be in China and may be using my card. One should not only do this with their credit card issuer but also with their bank who issues their debit/check card(s). I use my Visa Check card much more while in China than I do my credit card because most places there (outside of major hotels and department stores) don't accept credit cards. I use my check card to take cash out of my US accounts - although I don't even do that much anymore because I now have a Chinese Bank account from which I withdraw most of my trip expenses from, that way there are no foreign transaction fees involved and I don't have to worry about what exchange rate I will be getting.

[Henry]

Student loans are cancelled after 25 years? Is this true? That is news to me. If I had it to do over again, I would not have bothered to pursue any of my degrees. Worthless mountain of debt that is. Instead I would have taken a simple job and worked double time and saved all the money.

Anyhow, it is my understanding that if you do not pay, they will start coming after your SS benefits. I wouldnt count on it being there if there are outstanding student loans.

Another thing is that SLs can't be discharged by bankruptcy. Yeah they pretty much gotcha if you ever need to use credit again. Even to get a job nowadays requires a credit check and a personality test.

[jm21-2]

Student loans are cancelled after 25 years? Is this true? That is news to me. If I had it to do over again, I would not have bothered to pursue any of my degrees. Worthless mountain of debt that is. Instead I would have taken a simple job and worked double time and saved all the money.

Anyhow, it is my understanding that if you do not pay, they will start coming after your SS benefits. I wouldnt count on it being there if there are outstanding student loans.

Another thing is that SLs can't be discharged by bankruptcy. Yeah they pretty much gotcha if you ever need to use credit again. Even to get a job nowadays requires a credit check and a personality test.

There's a new repayment plan that they put in place based on your income. If you make below a certain amount (I think it was 150% of the poverty line or something like that) you don't have to pay on the loans. If you are above the amount you have to pay. Deal is that as far as monthly payments go, if you make a very low wage you don't pay anything, but if you make a lot you pay a lot. But after 25 years, no matter what you've payed, the loans are forgiven. The amount that is forgiven are taxed though, or at least it was.

[Henry]

There's a new repayment plan that they put in place based on your income. If you make below a certain amount (I think it was 150% of the poverty line or something like that) you don't have to pay on the loans. If you are above the amount you have to pay. Deal is that as far as monthly payments go, if you make a very low wage you don't pay anything, but if you make a lot you pay a lot. But after 25 years, no matter what you've payed, the loans are forgiven. The amount that is forgiven are taxed though, or at least it was.

I cant find sources for this on the internet at all. Is this info intentionally hidden, you think?

As for the poverty line, wouldnt the judge look at your tax payment history and ask you why all of a sudden you are working less hours / quit your job?

OK, I found this: http://www.ibrinfo.org/what.vp.html

Looks like there need to be 25 years of payments.