As some of you know, I love to shop on Ebay and pay with PayPal. Recently I've seen a new feature where you can check out using Bill Me Later. Basically it works like a credit card but it's not really plastic and can only be used online. A lot of merchants also offer Bill Me Later at checkout and all you need is your birthday and the the last 4 digits of your SSN. Fast, simple and I'm not adding any more debt to the Citi card which used to be linked to PayPal.
It also gives me a $500 dollar limit so I can't get in trouble. I probably only charge $100 at the most but I love the convenience and there are not fees. Below is what the account looks like, as you can see someone had some fun shopping on Ebay last month:
Can online shopping get any easier? Do you use Bill Me Later?
HS
19 comments:
So when do you have to actually pay the bill? Why is this advantageous over regular paypal or on-line credit card purchases? I've honestly never heard of "bill me later" but I doubt I'd use it.
~ Me
I have never used bill pay before, but I have seen and heard of it though.
It looks like something I may try out in the near future.
Thanks for the insight.
More like, Can accruing more debt be easier than that?
this seems scary to me...where's the catch?
If I found the right information, this has 17.9% interest on the balance if you don't pay it off in full each month. It might not have a physical card associated with it but it smells like a credit card to me.
Yes, if you pay it off in full each time, there is no interest. But there's also no rewards either. You could use a card you pay off each month and get rewards. You also get the protections from the credit card and probably a longer grace period to make a payment. I can't be sure without looking up the fine print.
I'm just not sure I see the benefit but that might be because I have a profound distrust for anything related to paypal.
I'm confused why you think this is better than adding to the Citi card. It's still debt, just in a different place.
I don't think it's a good idea to have yet another credit account where you can accumulate a balance.
OK, looking at their fine print it's 19.99% APR... and a minimum finance charge of $2 if you have interest at all.
But after reading the fine print, this seems even more identical to a credit card than it did at first. It basically is a credit card and they do pull credit reports (according to their FAQ) to approve you. On top of that, they can and will dynamically repull your credit if you want a purchase higher than your current limit -- in order to see if they want to up your limit.
OK in my mind I'm paying it off every month so I'm not adding to debt! but yes... another credit card! I swear I'm an addict LOL
HS
Hey, I'm not saying it's bad because it's a credit card. I'm saying it's not good because if you're going to be paying off a credit card in full each month... you should at least make it one with good rewards! ;-)
I think this blog is a farce. Maybe JW from "We need to be debt free" decided to take up a new project?
Wow I actually remember JW... Way back in 2007, crazy!
HS
I saw that last night when I made a purchase. I'd have to be careful because it means I have more money right now to spend instead of keeping it to pay off at the end of the month. But a good thing to have if you must buy something now or a couple of days before payday.
Cool! So no fees at all? Like I said, I saw it but didn't look into it. Hmmm.....wonder if they have road bikes. LOL
It's funny how there are "blog personalities" and some think of them like actors - like JW writing a (possibly) farcical blog, and I can think of at least one other blog that I thought might be a fictional farce (I think Stephanie might have been accusing your blog of being literally a farce) and Stephanie doesn't have a blog or profile, but is one of those (t-word)s who leaves cutting, snarky snips on the blogs of others, and that seems to be her only purpose in Blogworld.
On topic now: I'm not sure what your total debt is or what your goals are, but if you want to be credit-card debt free, I wondered if you might want to develop a plan like curbing spending sharply to pay the bills off. I get the impression that you have the income to do it, but just need to curtail discretionary spending. Maybe you could pay off all credit card debt and then see how you like it? If you feel comfortable going back to carrying balances, you could try that. I just wondered if you are giving it a real try, paying off the debts. Sorry, but I can't remember what they are and how many cards or problematic debts there are.
By the way, Kevin is right - or at least, I share his "profound distrust" for anything connected to Paypal. They are a big clumsy monster, as far as I am concerned. Don't even get me started. I didn't even apply for "Bill Me Later" but I got a letter from them turning me down (fraudulent, obviously - when I called them they were very nice but also clueless.)
Total CC debt around 10,500... can't do it.. debt is winning. Will probably take a break soon :(
HS
I don't like to hear anyone being discouraged and giving up. Have you worked up a balance sheet showing your income and your regular bills and the other obligations (like credit card minimums) that you have to meet each month? You could post it on the blog or just keep it to yourself, but you might be able to identify leaks in your budget if you do that, similar to an energy inspection that shows leaky windows. Sometimes just cutting out a few things can lead to a lot more cash flow that will enable you to steamroll your debt faster than you think. Especially if your income is good, and correct me if I'm wrong, but I thought it was. Why not give it a try, if you haven't worked up a realistic analysis of what you spend each month and what you could cut back on so that you could eliminate some debt balances?
Giving up is not the answer! But spending on a different credit method, which is all Bill me later is, that's not the answer, either. Bill Me Later is just more of the same. Don't let hte $500 balance lure you into a false sense of security. I have a $16,000 limit on a credit card that started out with a $500 limit, and i got it that high by USING it. Danger, danger, danger!
HS, don't give up! It seems like 10K is a major hump for you - you've been here before, then once you pay your debt down to around 10K you get comfortable and give up. If you could just get below 10K, I think you could go all the way!!
We are rooting for you! Just think of how good debt free will feel :)
I love using bill me later. When I purchase something on ebay, using paypal, bml is the default method. Paying off my balance in time month after month has increased my credit line with BLM.
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