Why Paying Rent With Your Credit Card Is a Terrible Idea

A while ago, I was alerted to an alarming article about a Canadian company, RentMoola, who is making it possible to pay you rent with your credit card (you can read the full article here).

While I understand that this isn’t a bad thing for everyone, I think for the majority of the population this is a terrible idea.

The Purpose of Charging Rent to a Credit Card (Landlords)

The mindset is that it will reduce bounced cheques or late payments for the landlords. My argument of course being if the cheque bounced the obviously didn’t have the rent money anyway, credit card or not, and the landlords are now given a financial power to charge the money the individual didn’t have.

Rewards for the Tenants

I understand that people who have good credit card control may want the opportunity to rack up major rewards every month simply by paying rent but I still think this is a terrible idea. Can you imagine the slippery slope if you missed even one month and let the interest spiral out of control?

Until there is more public awareness to how credit works and how credit needs to be used with respect, nothing good can come of this, unless of course you work for an insolvency organization in which case you’re business is about to take off ten fold.

Money Management Skills and Paying Rent with a Credit Card

Maybe I should have more faith in the Canadian population and maybe this will help teach them the money management skills they require. I mean charging a few bucks on the credit card (albeit multiple times) and ignore the growing bill is one thing (not an excuse, I can understand how it happens though), could people really charge $600-$2000+/month on their bills and ignore it?

What happened to focusing in having full control over your money rather than making it seem like charging it on your credit card is a great idea for everything? Managing your money is time-consuming, I spend hours per month making sure everything is right but it’s because it needs to be done. Part of the responsibility of earning money is managing it with the respect that it deserves. Money management can be exhausting and requires real effort. It can be daunting if you’re not currently doing it (with any real system) but every household that has income requires it.

It annoys me when companies like this make everything seem so unrealistically easy. Just charge it and it’s done! Planning your budget and writing cheques, or at the very least making sure the money is in your bank account for automatic withdraw for your rent, is part of managing money!

Canadians have always held pride in the notion that we do what is best for the entire population not the individuals that make up its sum. I love that I live in a population vs. individualistic mindset and this idea seems to be getting away from it. With the average household debt levels climbing, and the amount of people who rent monthly, this will create an entire new set of problems for our economy.

Having said all this, I’m sort of eager to see how this plays out and if it catches on. Would you charge rent to your credit card? Why/why not?

Where to Spend your Renovation Dollars

Although selling your home may not be in your immediate future, you should still be keeping up with needed renovations, simply because a surprise opportunity to sell may come up.

In addition to that, the enjoyment related to a newly renovated space is undoubtedly important, as well. It is essential to plan these renovations with the potential for return on investment.

The following home improvement projects will be worth every dollar, especially when it comes to returning on your investment when it comes time to sell.

Glam Up your Kitchen

According to Comfree, the kitchen is an ideal place to invest if you want to be certain that you will make your money back. An updated, functional kitchen can substantially increase the value of your home.

Families and homeowners spend a large portion of their time in the kitchen, preparing and enjoying meals with loved ones. Invest in a quality kitchen that both you and the future owners will adore.

The best places to focus your efforts on are countertops and cabinets. Future buyers will expect a neat kitchen with quality embellishments. It’s also important to keep your appliances up to date, both for the overall look and feel of the kitchen, but it will also cut down on repair costs in the future. If you’re planning an out of state or country move, quality appliances that you need to leave behind could potentially draw in buyers, as well.

Add Elegant Features to your Bathroom

Carl Vogel of This Old House says that if you’re not investing in your kitchen, the bathroom is the next most valuable area of your house to renovate. Bathrooms are a space meant for relaxation and comfort, making them an integral component of a desirable home.

The master bathroom, in particular, is a huge selling point when renovated the right way.

When choosing which projects to take on, consider installing a large soaking tub and attractive tile work. These features create an area where potential buyers can envision themselves unwinding after a long day.

Potential homebuyers may also test the water pressure in a shower, so if you have low water pressure, add a new shower head to compensate. This is a cheap and easy fix that could seal the deal in a future sale. Bathrooms are never a bad place to invest your money when you are renovating your home.

Maximize your Space

If you have an extra space, whether it be an area or a whole room, that does not quite have a specific purpose, give it one.

Decide on the kind of space that would most benefit your current needs, and take that route.The new room will likely be one that would be appreciated by a potential buyer.

If you work from home or need a space dedicated to paperwork, bills, and important documents, a home office is a functional space to create. If you have young children, an extra playroom may be an invaluable addition. Give your space purpose to both meet your current needs and expose your home’s functionality to future prospective buyers.

Home renovations should be done to increase the comfort and functionality of your home. However, it does not hurt to keep your future return on investment in mind, in the process. These popular areas for home improvement are some of the ways that you can invest in your home and expect it to add considerable value. Keep them in mind as you plan your next exciting home project.

Author Bio: Roger Wright is an award-winning Broker at Coldwell Banker, specializing in investment properties. Reach out to him at (800) 756-3660 for any questions, especially about relocation, development and real estate licenses and transactions.

Cheap Ways to Organize

Spring is coming!

This is what I tell myself every day when I look out the window and see the cold winter rain. We’ve been spoiled lately, as even though it’s January it’s been around 52 degrees during the day and fairly sunny. We do appreciate the nice weather, but because it’s still too chilly to get out and ride our bikes, we find ourselves organizing.

At the first sign of spring (in this case, sunshine), we find ourselves excited to de-clutter and organize our home. There are things to sell, papers to shred, and rooms to clear out.

In previous years, I’ve gone out and spent some serious cash on bins, cabinets, labels, and other methods of organizing. But no more! Save money on organizing with a few thrifty methods:

Save Those Jars to Save Money

Over the course of a year, most households end up recycling many glass jars. You get jars with some condiments, pasta sauces, and snacks. Sometimes, people will gift things in jars.

Save the jars after you finish using what came inside them. Wash them out, soak them in water to peel off any labels, and re-purpose them!

I have a small can of chalkboard paint so that I can paint over the company logos on the lids and write what the jar contains/is supposed to contain.

Photo via http://homemadesimple.com

You can store dry foods (raisins, nuts, rice, cereal) in these jars, crafting supplies, nails or hardware, and even beauty toiletries (ie cotton balls, q-tips).

Thrifting Shoe Boxes

You may be surprised as to just how helpful a plain and simple shoe box can be when it comes to organizing.

Instead of bulky plastic bins, I save shoe boxes, put a label on the front as to what it contains, and store it in closets where they fit well. Inside I keep photos, important documentation, crafting supplies, and other things we need to keep but don’t want to leave out in the open.

To make them look less like shoe boxes, use some crafting paper to “wrap” the box and lid. they will look like nice crafting boxes.

Clear Out Existing Junk

Organizing isn’t very effective if you hang on to things you no longer need. Try clearing out existing things that you no longer need. For instance, if you have a bunch of documents you need to file but your filing cabinet is full, look through your files to see whether you can recycle any of the documents already in there. You don’t need pay stubs from 2001.

Scan and upload documents onto an external hard drive if you feel that they are important to have but don’t need them in paper form.

This works well for photos in photo albums, too.

There’s nary a more organized feeling than when you rid yourself of stuff you no longer need.

Organizing doesn’t have to be expensive, nor does it have to be complicated. You can find some cheap organization ideas by finding ways you can de-clutter and thrift things that you would otherwise recycle.

Suburban Finance

primary nav