Wednesday, October 2, 2013

PayPal Credit Card Not Available in Canada

I really hate credit cards.

I admit they are handy to have, but they're also very annoying when they get out of control.

Let me explain...

Let's pretend you make the average amount an American makes per year, which is $50,000 per year, but you max out your credit card and it has a really high spending limit of say $60,000. And you only pay the minimum each month which is 2% of the total.

Note: The average American has $15,185 in credit card debt (2011 stat). Some have no credit card debt at all, some have a lot more so the number of people out there who have $60,000 or more in credit card debt is a fair amount.

2% of $60,000 is $1,200 per month.

Now when you are only making $50,000 per year, $14,400 is a lot to be spending just on your credit card.

And then there is the interest. 19% on $60,000 is $11,400 annually (in reality it is compounded monthly so it ends up being a bit more than that).

So $14,400 minus $11,400 = $3,000 paid off the total amount. The rest is all interest.

It really makes you realize what a huge ripoff credit cards are.

Try doing the math on your own credit cards sometime. They're just a huge waste of money.

Lets pretend for a moment you have the same credit card debt as the Average American, which is $15,185. So you are paying minimum payments of $303.70 every month or $3,644.40 per year. And paying $2,885.15 in interest per year. So in reality you are only paying off the total by $759.25 per year and the rest is all interest. (Which means you only need to use your credit card for $63.27 each month and you are right back where you started from.)

Credit cards are basically a huge scam designed to entrap people and make them slaves-for-credit for the rest of their lives. Even elderly people have sometimes huge credit card debts!

Now if you pay an annual fee you can get a lower interest rate of 10% - which will save you thousands per year in interest.

However you are better off just consolidating your debt, and getting a line-of-credit at a much lower interest rate of 3 to 5%, depending on what your bank is offering. And you are better off doing it sooner than later, because if it grows out of control you may be looking at a 2nd mortgage, losing your home, or bankruptcy.

And then once you have cut up all your credit cards, pay off that debt and become credit card free (and DEBT FREE!) so you can go on with your life and use cash regularly.

I made the switch to cash years ago and I am loving it. Cash is so easy to use and there is a feeling of security with knowing I have lots of cash on me. (And live in a city with a really low crime rate.)

However I still sometimes purchase things online, using PayPal - which I love because it means the cash is already in your PayPal account and it is not credit, it is more like a bank debit card.

Which is why I LOVE the idea of a PayPal credit card, which allows you to buy things either online of offline and the amount comes straight out of your PayPal account in the same way a normal bank debit card works.

However in trying to apply for the PayPal credit card I learned a disappointing fact...

The PayPal Credit Card is Not Available in Canada.

Very disappointing PayPal. Why is it not available in Canada? I would seriously like to know.



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