Impacts of Interest Rates Increasing Significantly

It appears that interest rates will continue to go up.  Here are the impacts to many individuals:

• Pros
• CD, Bond and Money Market Rates will go up.  People will earn more money using this vehicles for savings.  High yield saving accounts will go up.   Unfortunately, most regular savings accounts will not change.
• Cons
• Interest on credit card debt will go up.  People will go into further debt.
• Mortgage rates will go up. Commercial mortgages that balloon will need to be refinanced at a higher rate.  It will be harder financially to buy a house.    Home sellers will get fewer buyers. 
• Variable interest rates will increase.  Adjustable rate mortgages will adjust upward.
• Bond mutual funds will decline in value.  Some mine are down 5-6% in 2026.
• Bond principals will decline in market value.  Some of my treasuries are down 4% in 2026.

Looks like the cons outweigh the pros.

Hopefully, interest rates rising significantly won't cause an economic decline nor, even worse, a recession.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, credit, nor debt advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Senior Discounts and Other Savings Opportunities

Since being over 55, I check if companies have senior discounts.   Many do, including Half Price Books and Walgreens.  My Ford dealer gives a discount on parts used for service.  I've also used the discount with movers and flooring installation. The discount ranges from 5-10% usually.

Different payment option sometimes charge a fee or offer a discount.  In the past, I asked if paying cash or by check gave a discount.   Sometimes yes, and sometimes no.  If yes, I pay by cash.   Recently, some service retailers have started charging a 3% service fee for using a credit card, with no fee for debit cards, checks or cash.   In this case, I pay by debit card or checks.

Sometimes the additional 3% service is indicated, and sometimes it is not.  I've started asking before making payment if a service fee is charged with credit cards, to avoid an additional charge.

Disclosure:  No compensation was received for writing this post.

For more on Reaping the Rewards Reflections, check back every Friday for a new segment.

This is not financial, payment method, nor fee advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Discover Card Bonus Rewards

Discover was the first card to give cash back.  It also didn't charge an annual fee. I think it was a 1/4% cash back for the first $3000 and 1% after that.  I got this card when it first came out.  The new Discover card is 1% cash back on all purchases. I also got this card because my daughter referred me and we both got $100 when I was accepted and spent a minimal amount.

Discover does offer bonus 5% cash back for certain purchases.  The bonus categories are varied, change on a quarterly basis, and have a limit of $75 bonus on $1500 of purchases.   For example, this quarter (April - June), restaurant and home improvement store charges receive a 5% cash back.

Cash back rewards can be used as follows:

• Payoff card balance.
• Deposit to linked bank account.
• Purchase gift cards at a 5-20% discount.

I don't don't link to a bank account.  I originally got gift cards but only when I expected to use it right away.  Lately, I've been paying part of my card balance.

Disclosure:  I was not compensated by Discover for this post.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial nor credit card advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

United Explorer Visa Card Bonus Rewards

All our credit cards earn points or cash back.  I try to use the card that benefit us the most.   Sometime this involves managing which card to use since some card offer bonus rewards periodically.

I have a United Explorer Visa card that I rarely use.  I originally got the card because we were flying United and it enabled us to check two bags for free.  In addition, I received two passes to their lounge, which we did use.  Also, I just found out I can use United points to pay the annual card fee.

However, I don't use the United Explorer card much except when they have occasional points bonus reward of 1000 point when spending $500 and and additional bonus of 1500 points if done in all three bonus months.  Recently though, the United Explorer increased the number of ways to get bonus rewards.

• $100 flight credit for spending $10000 in a calendar year.
• 6000 bonus miles for spending $7000 in a specified 4 month period.

Right now the bonus mile programs overlap in timing which means the same spending can apply to both bonuses.

For us, this is not additional spending.  It's just a choice of which card to use for rewards, since we use credit cards for almost everything, groceries, entertainment, travel, online purchase, etc, except if there is a added charge for using a credit card.

I estimate all the bonus miles will get me close to one economy round trip flight on United for one person.

Disclosure: No compensation from United or Visa was received for this post.

For more on Strategies and Plans, check back every Monday  for a new segment.

This is not financial, credit card, nor travel advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Pay Bills On Time

I always pay my bills on time.  

First, paying on time avoids penalties and interest which can add up quickly because it compounds.  In the worst case, these may exceed the initial bill over enough time. Penalties and interest on late or delayed payments is a death spiral I want to avoid.

Paying one's bills on time helps prevent living above one's means, which can be very detrimental to being successful at managing one's personal finances.  Right after college with a degree in chemical engineering, I worked for a Fortune 10 company.  I always paid my bills on time, even when I ran out of funds the first month working.  I had a friend who believed in maxing out her credit cards and paying only the minimum each month since she would have a higher standard of living.   Before long, her bills exceeded her take home pay and she took a second job as a in order to make ends meet.  Sheesh.

Doing so builds one's credit score and credibility with lenders, which is valuable.   My credit score typically is in the 800s.   As a result, I qualify for lower interest on loans, including  mortgages and car loans.  

Credibility may allow lenders to waive let fees for an abnormal missed payment by the deadline.  There have been a couple times I have been late.  One time, I mistyped the electronic payment and was off by a few dollars.  The credit card company charged me interest on the full amount even though I paid over 95% of the amount due.  I called in immediately and explained I had made a transposing error on the last two digits.   Also, I told them my record should show I always paid way before the due date.  The customer service rep did a one time waive of the interest charge based on my past performance.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial nor credit card advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Convenience Fee for Using Credit Cards

More small businesses are charging customers a "convenience fee" for using a credit card.  The fee ranges anywhere from 2% to 3.5%.  I understand since merchants pay a fee to the credit card company, but I'm not a fan of paying additional fees over the cost of the product or service.

Nowadays, I check what payments are accepted and if there is a fee for using a credit card.  If there is a fee, I will pay by check.  I don't mind doing so.

However, most large retailers still accept credit cards with no additional fee.  I expect the additional fee is worth the cost of bringing in buying customers. I continue to use a credit card with these merchants.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial nor credit card advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Strategic Use of Credit Cards

I have have several credit cards and use them regularly.  Here are my do's and don'ts of using credit cards.

Do's

• Use the credit card as a substitute for cash available to spend.  Charge only what you can afford to pay with cash, i.e. pay off each  month.
• Pay off the credit card balance before the due date to avoid late fee and interest charges, which can be very high. 
• Favor credit cards that don't charge an annual fee.   If an annual fee is charged, select cards where the annual benefits (e.g. annual free hotel room voucher) is greater than the fee.
• Choose credit cards based on benefits such as cash back, reward points, benefits such as trip insurance.
• Use credit cards to build credit score, which lowers insurance rates and interest for car and mortgage payments.
• Check the statement at least every month to ensure no errors or mistakes.  

Don'ts

• Don't use a credit card if one does not have enough funds to pay off the charges by the due date.
• Don't use a credit card if the merchant charges a convenience or surcharge fee.   Pay with cash or check instead.
• Don't use a credit card if the merchant gives a discount for cash or check. Pay with cash or check instead.
• Don't miss the due date or only pay the minimum amount.  Interest charges will accrue.

Additional recommendations:

• Create an online account, which allows checking the account more than once a month to confirm purchase and refund amounts.
• Use bank bill paying services, which is usually free, to receive bills electronically, which is faster than U.S. mail,  and pay electronically which is faster and saves postage charges.
• Pay off balances weekly prior to receiving the monthly bill. This makes the charges feel more like using cash. 

For more on Strategies and Plans, check back every Monday  for a new segment.

This is not financial, spending, credit score nor credit card advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Are Bonds Predicting a Recession?

"It's difficult to make predictions, especially about the future." ~ Yogi Berra

Last week, all my bonds and bond mutual funds increased in value.  I thought that was strange since the 30 year bond increased to almost a 5% yield , which means bond prices are falling, when the courts ruled against the tariffs.  However, later that week, the jobs numbers were poor, causing investors to worry about a possible recession, and in turn flocked to the safety of U.S. bonds. 

Do I know which direction the stock market is heading?  LOL, no! I'm just speculating based on the data that is available to me.   In reality, if I knew what is going to happen, I wouldn't be blogging about it.  I would just quietly YOLO and make millions.

Personally, with U.S. Debt at all time highs and rising, with Student Loan, Auto and Mortgage defaults increasing, and Credit Card debt at an all time high, I don't feel the economy and the stock market can continue doing well. So, I will take a path of being cautiously risk averse.  I'm slightly reducing our equity and bond investments and putting funds in short term money markets. Yes, I may miss out on significant gains if the market continues to only go up.    At the same time, I won't feel as much pain if the market declines significantly.

GLTA, which ever way you believe the economy and stock market are headed.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial nor investing advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Benefit of Paying Credit Card Balance Every Week

I've started to pay several of our credit cards every week, before the bill is sent.   I do this because I share 3-4 credit cards with family members.   Since I don't know what they are spending, I check periodically to see the balance on the card, so that I will have enough funds to pay the monthly bill.

Since I check the bill, I decided I might as well pay the balance, even though it is not due yet.  That way I don't forget or miss paying a large bill when it comes.  In addition, I am effectively spending on a cash basis, since I pay the balance every week.

Paying the balance weekly may also increase one's credit score since the percent utilization is lower when the monthly bill is issued.  Bonus!

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial nor credit card advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Financial Strategies that Helped Me

Here are some simple financial strategies that have worked for us and I'm sharing with my kids.

• Pay yourself first.   Put 5, 10, 15% or whatever into a savings account.  When I first started working, I would pay all my bills and expenses first and whatever was left at the end of the month was my savings.   Except for my first month of working, I was pretty good at having something left at the end of the month.   Later, I realized a better approach would be to take out my savings first, and then pay my bills and spend on expenses afterwards.
• Buy only what we need.  Marketers are adept at getting consumer to buy stuff.  The challenge to sort the needs from the wants.   Do I really need the best smart phone, cable TV, a large screen TV or a luxury car?  The answer is probably not.  Not buying these can reduce spending by hundreds of dollars one time or every month.  A related rule to this is to live below our means.
• Spend cash for everyday expenses. Using only cash is an easy way to limit spending.  Once the cash runs out, the spending stops.  A corollary to this is pay off entire credit card bill due every month.

OK, not everyone can follow these strategies.  But if one can, it is one path to a successful future retirement.

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial, saving, spending nor retirement advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Financial Mistakes that People Make

From ChatGPT:

There are many financial mistakes that people make, but some of the most common ones are:

• Not having an emergency fund: This can leave you vulnerable to unexpected expenses or income loss, and force you to rely on high-interest debt1.
• Paying off the wrong debt first: Some people focus on paying off small debts instead of high-interest ones, which can cost them more money in the long run1.
• Missing out on employer matching contributions: If your employer offers a retirement plan with matching contributions, you should take advantage of it as much as possible, otherwise you are leaving free money on the table1.
• Using credit cards for everyday expenses: This can lead to overspending and accumulating debt that is hard to pay off, especially if you only pay the minimum amount each month2.
• Borrowing money from friends or family: This can strain your relationships and create awkward situations if you can’t repay them on time or at all2.

1: CNBC 2: Investopedia

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2024 Achievement Catalyst, LLC

Credit Card Used Fraudently

This week, I received a call from the fraud division of our credit card company inquiring if we had made a purchase over weekend.  I was a little shocked to get the call, since we are careful about protecting our credit card info.   I didn't make the purchase.  My spouse wasn't available so I couldn't check with her.  So I asked if I could call back.   The representative gave me a toll free number to call back.

After I hung up, I wondered if the call was really from a scammer who was phishing for information since they asked me for my birthdate.  However, when I checked the call back number it was for the fraud division of the credit card company.   So I called the number, which asked me about a different transaction.  I decided to ask to speak to someone.

After getting my information, the customer service rep (CSR) asked about the same transaction again, which confirmed the first call was legitimate.   I tried the log onto our account, but was denied access.  The CSR reauthorized access to the account and I saw four transactions over the weekend which I was sure we didn't make.

I was informed that our card was going to be cancelled immediately and a new account would be opened for us.  We were to destroy our current cards and wait for the new cards to arrive.

Overall, I was impressed that the credit card company caught the fraudulent use so quickly, within a couple days.  We wouldn't have identified the issue until our next statement, which was a couple weeks away.  Once the credit card company resolves the issue, I will be interested if there are any steps we can take to avoid the issue in the future.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial or credit card advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

Preparing to Eliminate our Credit Cards

With the new credit card protection legislation due to take effect in 2010, I expect that some of our credit card providers will try to charge us an annual fee to offset loss revenue. As far as we're concerned, any fee charging credit will not get any of our business. Why, because I only use a credit card for convenience and the credit card company already makes about 2% on all my purchases. We're not paying an annual fee to a credit card company that give them the privilege of making money on our purchases.

Currently, we have three credit cards, Costco American Express, Discover, and Visa. The American Express and Discover are cash back cards, while the Visa earns Holiday Inn Priority points.

For now, I don't expect the American Express to charge an annual fee, since Costco offers the credit card to members on a no-fee basis. In addition, American Express is the only credit card accepted at Costco. I suspect Costco has negotiated special terms with American Express and can keep the no-fee benefit. If American Express decides to charge us a fee, I will cancel the card and lose a small amount due in the annual cash back payment.

Historically, Discover has always been a no-fee card. It was the main reason I applied for the card many years ago. However, if they decide to charge a fee, I will also cancel this card. Of course, we will take any cashback award available, before cancelling.

The card that I expect will charge a fee is our Visa, issued by Chase Bank. Currently, we earn Holiday Inn Priority points, which can be exchanged for free hotel stays. Fortunately, the points are associated with our Holiday Inn account and are not tied to the credit card. Thus, if a annual fee is charged, we'll cancel the card.

In the unforeseen situation where all three credit cards levy an annual fee, we go back to paying with either checks or cash, since neither of these methods of payment carry a fee.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2009 Achievement Catalyst, LLC

More Carnivals of Money and Finance!!!

The 73rd Carnival of Personal Finance is hosted at City Girl's Financial Blog. She has listed about 60 posts on personal finance. One of her favorites is “GolbGuru juggles 18 credit cards! In 18 Credit Cards And Not A Single Late Payment: A Guide To Efficent Credit Card Management #1, he shares his secrets at Money, Matter, and More Musings.” I was impressed with GolbGuru’s ability to manage that many accounts and passwords without missing a beat or a payment.

The Sixth Edition of Carnival of Taxes is now available at Kay Bell’s blog, Don't Mess With Taxes . I am a big fan of paying the government no more than what I owe. In the tax break section of this Carnival, I learned about a new $30-$60 telephone tax refund that has been enacted for 2006.

The Ninth Festival of Stocks is up and running at SINLetter. There are 12 posts on investment strategies and individual stock picks. SINLetter also has posted their model portfolio which has returned an awesome 72.9% since August, 2005. (Disclosure: I have no financial relationship with SINLetter.)

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2006 Achievement Catalyst, LLC

Cash or Credit

Earlier I wrote that I buy only what I need and I pay with cash. There are two exceptions I have to the "pay with cash" principle.

First, we didn't pay cash for my house. We took out a mortgage for 60% of our house. We could have paid cash, but we didn't want to use up a significant portion of our savings. In 2003, interest rates were also at 5.5% for 30 year mortgages. However, we are working to pay off the mortgage in about 15 years. And we are considering paying it off in the next 2 years for reasons to be explained in a future posting.

Second we use a credit card for convenience. We charge most of our regular expenses (e.g. groceries, gasoline, clothing, gifts, and entertainment) to a credit card and pay off the entire balance every month. We use credit cards that have no annual fee and either points or rebates. I don't check the interest rates since we always pay off the balance. Currently, we carry only 3 credit cards and that may even be too many. We each have the card from when we were single, Discover and VISA. We added American Express because that is the only card Costco accepts. We never ever carry a balance nor pay interest.

On large purchases, such as furniture, appliances, or services, I always ask if there is a discount for paying cash. About 90% of the time, there is a 2-3% discount, which amounts to $20-30 per $1000 spent. My spouse is reluctant to ask for a cash discount, but I am always happy to ask. As a colleague once told me, the worst they can say is "no." And very few people are say no nowadays. If there is a discount, I pay cash. If there is not a discount, I use the credit card and take the rebate or points.

This is not financial advice. Please consult a professional advisor.

Copyright © 2006 Achievement Catalyst, LLC