Adventures in Debt

In a previous post I explained my debt reduction strategy, and also how I reshuffled some of my debt. One debt was transferred to Visa #1, to take advantage of low interest rate promotion they were offering to me. I got my statement in the mail today, and I noticed that there was a “Amount due immediately” line in the itemized payment section. I found this a little odd, because I was not late with a payment, or anything like that, so I was confused.

I look more closely, and it turns out that they’re requesting more money because I went over my limit! This was an amusing little thing, because I should have been just AT my limit, not OVER it.

I look even more closely, and start to laugh. It appears I’ve gone over my limit by way of the interest charge on the statement! Apparently I was supposed to leave room on the card for the interest charge, which I find funny as that’s not a charge I made, but rather one the bank made. Yet they ask for money right away. Hmm, wonder if there’s a charge for going over the limit? Oh, there it is, another $20 to pay. Jeez, talk about stupid fees! Good thing I was going to be making my payment this week anyways, guess I’ll made it a little earlier this week than planned.

While the article is a few weeks old, it just reminded me why I’m pleased to already have one of these accounts:

In the July 12th edition of the Globe and Mail, Rob Carrick talks about high-interest savings accounts, specifically one from HSBC Canada. This is a bank that most Canadians aren’t aware of, but it’s one of the world’s largest, with offices all over the world. He highlights the many reasons why you should have a savings account (saving money is always good, especially with a higher interest rate), and talks in depth about the major reason why I have my emergency fund in an HSBC Canada Direct Savings account:

You can’t write cheques on it or get access to it through HSBC’s 130 or so Canadian branches, but you can make debit purchases at stores and make withdrawals from automated banking machines.

I continue to use my ING Direct accounts, however for my emergency fund, I figured it was safer to have it in a place that was a little more accessible, just in case. And using either HSBC Canada’s own ABMs, or even one from The Exchange Network is definitely more convenient than waiting for the transfer from ING Direct. Granted, the transfers don’t always take a long time, but if I need the money this afternoon, then the HSBC Canada Direct Savings account wins, hands down.

So if you’re not uncomfortable dealing with a foreign bank, I’d recommend HSBC Canada’s Direct Savings account. And if you open an account now, you’ll actually earn 5% interest till October 10, and then afterwards it goes back to their “regular” 3.5%, still not too shabby. So go on, start saving today.

You know you want to join me on the adventure as I try to pay off my debts and save some cashola. I’m doing my best to make my posts as informative and entertaining as possible, and I’ll try to give you some tips & advice as well, so you’ll be getting something out of the whole journey as well.

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