I love easy pay. I don't use credit cards anymore. I use my debit card and the easy pay makes it "easy" on me. i can't remember who said it but just be responsible. i see both sides of the argument but I love easy pay. It's not hard for me to make three payments of XXX amount but hard for me to make one big payment of XXX amount

Actually, I take it back. We do have on Visa card through the local credit union. No fees, no hassle. I forgot about it because it is used basically only for travel and I rarely even see it.

As for the Easy Pay, it does sound like a great idea. If I want something for say $300 but I only have $100 extra per month, it would allow me to get it now. Problem is, what if something important comes up in month 2 or 3 and you suddenly don't have the money to cover it? Obviously we have plenty of cash in the bank to cover most unexpected emergencies but I'd still rather wait until I have the cash in my hobby budget to get what I want. And yes, I do have a hobby budget. I factor it into the budgeting just like I do savings, retirement, house maintenance or any other category. Also, any "side" money that I get generally goes toward the hobby.

I agree with Minnflyer... be responsible. Unfortunately most of America has had a very hard time with that over the last couple decades.

I pay for EVERYTHING with a CC Card,, I have never paid interest and every 20,000 miles ($20,000.) I get a FREE $350 airlone ticket. I have flow to CA, CO, FL all with the kick backs from the credit card.

I couldn't agree more about what you said about keeping debt down and not financing this hobby.

I will just add/counter that I use my credit card for EVERYTHING. The reason I do is I have a card that gives me 1% cash back on every purchase and up to 3% cash back on certain things like groceries, movies, other random stuff. So I put everything on it and pay it off at the end of each month. Essentially I only use it for things I that I'd be paying for anyways; and I never carry a balance month to month. But with the cash back, I end up getting back a couple of hundred bucks each year in giftcards or checks from the credit card company.

OK time to get out my soap box. The nay sayers obviously arn't in any type of business. I run my busines on credit cards,much cheaper that a bank revolving credit account. I do a job and it takes 2 + months to get paid hard to live on nothing plus buying materials for the next job. Before the banks crashed I got paid 2-4 wks. Its great to use the banks money for 30 days free. I purchased my frist turbine with a credit card. They are a great tool if you know how to use them. OK box away.

Well, I'll just add one more thing and then back off,,recently I've read you actually need 2 credit cards, because if you happen to charge something from a company, and on that day and from that company someone elses card is compromised, they will pull all the cards used on that day at that company and cancel them, now as a rule they will immediatly re-issue another card, but you will not be notified, so you can have perfect credit and be on the road and cant get a tank of gas or a room because your card is no good and you dont have a clue...for me I think 1 credit and 1 debit will suffice.....another thing is the credit card companies are trying to push through either non use fee's (for people who have but dont use) or payoff (privilige) fees for those who use the card all month and then pay them off so the cc comp doesnt make any interest off them.(theres a word for it , but I cant think of it at the moment)..its all on MSN, I read alot about money/credit too...Rog

Actually, Ido run a business and have for 14 years now. Iknow all about balancing accounts receivable and accounts payable in managing a business. There have been several times that we've had to use credit several times throughout the years for several different reasons, but we've always gone to the bank for those times and used signature loans to get what we needed. The interest rate on signature loans from my bank is much better than most cards offer. Idon't keep a revolving account at the bank, Isimply do a signature loan when we need a bit extra to help with projects. However, we don't make it a habit of doing that and prefer to not take loans if we can avoid it. In 14 years I can still count on one hand the number of times we've had to do this. Whenever we have a big install job for a customer all of the hardware is payed for at the time the client approves the job, so we aren't out of our pocket on those huge purchases.

I'm sorry if Iupset some with my statement as it wasn't my intent. Ido realize that there are many people that use credit cards responsibly and never have any problems with them. And to those people Iwill agree that what Isaid doesn't apply to you. Unfortunately you are in the minority in our country in that you use your credit cards responsibly. Recently Iheard that the average person in this country has $10,000 worth of credit card debt. Ten Thousand Dollars!!!!That's huge and outrageous when you start considering just how much money that is, and think about how much interest they are paying on that money. Our society as a whole does not handle credit well. Far too many people get credit and consider it a blank check to go out and spend and never consider the fact that they have to pay it back. Many then get another card and make payments on the first card, and so on and so forth. It becomes a very slippery slope that gets many people in trouble quickly. And yes, Ican speak from experience because Ifell prey to that mentality when I was in collage. I got my first card and went to town with it, and found myself with a lot of debt that took some time to pay it off. All of this is why Istated earlier that credit shouldn't be used to finance a hobby with.

Ken

The recent economy has really opened my eyes too. I know a lot of people who are unemployed, have an upside-down mortgage, 2 massive car loans and tons of credit card debt. They have lost everything and suffered a great deal of mental stress and even physical illness because of it. With no debts, it is a different story. I might feel betrayed or something if I lost my job and it wouldn't be fun but we wouldn't be devastated. No collectors at the door, no repos, nothing like that. Just tighten the belt a little and keep on going.

Every time you use credit there is an inherent amount of risk, even if it is only a slight one. For some things that risk is obviously worth it but model airplanes are not.

The easy pay is a great way for people to who cant afford a $300+ engine,kit or arf and its a great way for them to stay in this hobby, especially in these hard economic times. I can understand that people will always say" If you cant afford it then,you cant afford it" its the double edge sword situation, but if your responsible then you have nothing to fear. 0% intrest, no fees, no gimmicks, I have used it before and I have used credit cards..and credit cards can be tricky and can be the devil but it all boils down to being morally responsible. I see no harm in it what so ever, if your more comfortable paying cash or waiting til you have cash on hand, then Great for you. Some people need an extra hand ie easy pay. Either way its directly & indirectly keeping this hobby alive and growing..so i embrace the easy pay feature..i'm surprised they even do it! Kind of gives you the ole mom and pop feel that i have at my LHS. In which they offered me a line of credit based off my going there at least 5 times a week lol...oh well if it keeps you happy and sane then make a good solid adult decision.

FYI - You can go to the credit reporting agencies and request to be taken off of the pre approved promotions list. This will reduce or eliminate the offers. Saves, trees, time, and shredders. Unfortunately your opt-out has to be submitted each year (it expires).

Since the topic seems to have changed from Towers Easy Pay to the use of Credit Cards in personal financial management, I will throw this in.
As all have testified to, the Credit Card is best used when one pays it off each month. That I do, yet my wife and I use the CC to make almost every purchase. WHY?

Simply because we have both United Air lines and Continental milage-plus CCs. We enjoy several trips around the country each year practically free. Easy to send the CCs a check each month. Although I have retired-pilot passes on UAL, those are "standby" and today I'm too old to sit around and wait and frequently not be able to get a seat. In addition the United seniority is not honored on United Express with passes. Besides all that I have to dress up a bit moreso, especially if I elect first class.

Besides UAL does not have adequate trips out of Houston for them to have any open seats, especially when I wish to go.

Using a free ticket I can reserve a seat. I can go in jeans and comfortable dress for whatever I need at my destination. It's worth "free" [sm=biggrin.gif]

Any individual is in charge of his/her own financial planning, however if you elect my plan then maybe you can get a free airline trip to Muncie during the NATs this summer. Darn good reason to go, but please allow for time at the Museum. [sm=shades_smile.gif]

Credit cards are the way to go if you can be responsible. If your bill is paid monthly you should have zero intrest. If you are irresponsible you could be hit with big intrest.

I have used credit cards for many, many years and never paid a single penny in intrest. If you are the responsible type of person, go with credit cards, if you are irresponsible, shame on you.

Don't discourage others because of your irresponsibility.

Usually I carry 3 credit cards because, over a period of time the bank cancle the card for security reasons which I agree with 100%. You have to call the bank to prove to them you are the real person and not the person who stole it.

So your spending money that you really don't have yet? Thats not good either.

[quote][I like the 3 pay. It helps hide those really big purchases from the wife /quote]

YOU SIR ARE CORRECT!!! THATS MY TACTIC!

There are 2 types of people in the world, the people who can manage credit and those who can't. The people who can manage credit don't need the credit and ones who need it should not have it. I have gone down that road and ended up bankrupt because of it. It took 27 years to do it, but in the end I lost. Never buy any hobby item you can't pay cash for period. Better yet, put yourself on a strict budget and plan your purchases carefully. Mine is $520 per year plus any gifts I receive or a piece of anything I earn on the side. If your putting the hurt on your finances or your hiding your purchases from your family, You have a problem. Don't be me, broke with no retirement at the age of 46 with 2 small children because I started making bad decissions about money when I was in my teens.

Blhollo2,
I'm not picking on you by quoting you here, but this is a very common conception of using credit like this. You say that it's a good way for somebody buy something they can't afford. Let's use a $300 plane for example. Being able to pay on credit doesn't change the cost of the item, it's going to cost $300 whether you buy it on credit or if you pay all of the cash as the time you buy it. So buying on credit doesn't make the item any more affordable if it's purchased that way, it's going to cost the same either way.What's the difference of saving up every month and buying the item when you have all $300 in your hands and then buy it??And this is the point of my discussion above.

Look at this example:

Guy #1 wants to buy a $300 plane. Every month he puts aside $100 and in three months he has the money in hand, so he orders the plane. He now has the plane in his hands and doesn't owe anybody anything.

Guy #2 wants to buy a $300 plane, but he can't wait to get it so he buys it on the Easy Pay system. He gets his plane immediately and makes the first $100 payment. Now, next month the car engine blows up (or the dishwasher dies, or the kids need to go the doctor, or insert any other unplanned emergency that costs a lot of money) and he has to use the money he was going to send to Tower to pay for the emergency. Now he's going to get behind in his payments with Tower and will have to deal with the repercussions of that (read collection action if it goes on too long). And if you add on to that he crashes the plane now he's in debt over a plane that he doesn't even have anymore.

Now Guy #1 can have the same unplanned emergencies that require cash, but in his case he simply takes the money he was saving for the plane and applies that to his emergency. Yes, Iknow that he doesn't get the plane. But he also isn't into debt with Tower Hobbies either. So in the long run he's better off.

Let's face it, what we do is for recreation. It's not like this is life or death and the world isn't going to end if we can't fly. And because of this it simply isn't worth getting into debt over (in my opinion). There are plenty of things that are worth racking up debt over, buying a house for instance. Or even unplanned medical expenses. Something like that I can see having to owe money on. I know because we've been there. My wife needed surgery and we wound up owing the hospital for that. But Isimply set up a payment plan and had them payed off in 6 months. I don't mind being in debt for something like that, but not for an airplane.

I know that there will be some out there that will say "But it's on sale right now, and that's the only way Ican get it."I'm all for buying something on sale and saving a bit of money on, but not enough to go into debt for. In the time that I've been flying Ihave missed many deals on special because Ididn't have the money to buy it during the sale. Has it changed the way Ienjoy the hobby??Heck no, Ijust moved on and kept flying the planes that Ihave. But not getting that plane "right now" didn't stop me from enjoying what Ihave.

The last paragraph is actually a great statement about part of the problem with society and why we have so much financial problems in this country right now. It's the "I want it now!!!" syndrome. Instant gratification.People just don't want to wait for something, they want it now. So if they can't wait and save the money they finance it, and go into debt to get it. And that is something that Ijust refuse to do. Especially for a hobby.

That's my 2 pennies worth

Ken

You realize this is how our federal,state and local goverments function? It is only bad when you get so deep in debt that you dont have enough to put some money away in savings. Then your in the red..The black is where your Federal and state goverements need to be. Unfortunatly past trends have made todays conditions.

You have to have your priorities in order.

I would finance an RC plane before I would finance a house or a car. With that being said. I use Tower 3 pay with my debit card. I've used it(Easy Pay) 3 times in 3 years. I do not own a Credit Card. At present my total debt to the entire world is $323.00. $250.00 of that goes to a useless lawyer that I have been paying $100.00 a month for services not rendered. If I can pay him for nothing I can afford much more for a HOBBY that I live for.-BW

I have 1 credit card I use.. Like everyone says I pay it off each month. I also have a seperate bank account for my hobby fund. I resell a lot of hobby items and put the money in that account. So in other words I only sped from hobby funds. I have a cheap home loan, two paid off beaters that still drive, and a cheap loan on a used car for my wife. When I pull to the field with a trailer full of 100cc new airplanes everybody thinks I am in so much debt or well off.. I dont tell them the truth. There are ways to play just dont let it get out of hand. i would rather live cheap and enjoy life more than try to keep up with the Jones's..

RCKen,

I can see your point of view, but I also understand how people function when they dont have the means to buy in full but want to buy in part & have the ability to make payments.

You right. People can yap yap all they want about this topic and it won't change anything. It boils down to one word ~* Responsibility*~.

Be responsible, so when your kids ask you for college money, you will be able to help them, instead of watching them walk to their room with their head down to put on a Winn-Dixie uniform. One day when your child comes home and says, hey dad guess what, I have a PH D, you'll be glad.

CHEERS...

Credit cards are a losing proposition for both the consumer and the merchant. The consumer pays ever increasing interest and the merchant pays a "discount". While my restaurant accepts all major cards, I literally hate seeing the discount which realistically means I've discounted my menu on top of any other promos! I have been on the bad side of credit card debt and will soon pay off all of my cards and I've all ready paid off two and cancelled them. If you can adhere to the principle of paying the cards off within the grace period then great, if not stay away like they were the plague!

Happy Flying!

Loopman

If they can make payments then they can make deposits in a savings account and wait until they have all the money in hand to make the purchase in whole. And while they have their own money in their own savings account they can be drawing interest off of that money. So they can actually have their money working for them making money while they save it. The Easy Pay doesn't have anything at all do with "not buying in full", but rather it has everything to do with what Isaid earlier.... Instant gratification. They just don't want to wait until they have the money in hand. I've been there myself in the past and I can tell you it's a very easy way to get in trouble with. But if you send Tower the money in full each time you make a purchase then you'll never get in financial trouble. It works with Tower as well as discipline in using credit cards, it's just too easy to get yourself in trouble. It's not for me, and if can help even one person avoid those problems by posting here then I'll feel like I've helped someone.

Ken

For some things sure. You need to have shelter for instance so it makes sense for that. You need to get to work and other places so a car makes sense so long as it isn't more car than you can afford (although I am going to pay cash for my next truck). You may need open heart surgery, the kid might need braces or the AC unit on the house might go out. Things like that are necessary and a lot of people don't have that kind of money on hand so going into debt for them might make sense so long as it is re-paid responsibly.

For an RC airplane? No way. Same goes for any other "toys" that are luxuries, not necessities.

Excessive debt will haunt you and make you its slave. If it is avoided life is much easier and you actually end up with more money and more stuff. It's funny how it works.

Think of credit and debt as a "product" because that's what it is. Banks and credit card companies are trying to sell it to you because they make money off of it. They are very good at selling it too making you think it is cool or even necessary. Would someone say that you couldn't live without any other product? Would my world crumble if I didn't buy Cheez-its? Of course not. Same goes for credit cards.

As for our governments operating on debt and deficits, that is a huge issue. It is why my wife took a 15% pay cut, CA parks are closing, convicts are being turned loose, police officers are being laid off, etc. When they are spending your money they really get out of control.

One of the best quotes I ever heard was something like "maturity and responsibility is the willingness and ability to avoid pleasure until you can actually afford it". Something like that anyhow. I probably got it wrong.

My wife and I pay for almost everything we buy with a credit card. We put between $40 - $50K per year on the card. We ALWAYS pay it off in full every month. We use the points we get to get rewards. My card happens to be from BMW, and right now I have $2000 credit toward purchase of next car. Just used it to get free $840 airfares, $200 Macy's gift card, and last year $500 worth of high end bar stools.

We let others who over-extend themselves pay our rewards I suppose.

This is one lesson I have successfully taught both of our adult kids - never carry a CC balance! Never!! It is the worst sucker bet out there. If you can't pay for it within 30 days, don't buy it. You probably don't need it anyway.

Our schools really are lacking in teaching young minds how to use credit and handle their finances. It is a real gap in our education system IMO. It is left to responsible parents to teach the kids. Do it!

RAL