BEING a traffic cop is quite a lucrative profession these days. Cops seem to be pretty adept at giving you the most obscure reasons to fine you. You no longer need to get into an accident to get their attention.

Right from using cell phones (on hands free), changing lanes (after using an indicator), running a light (which was orange, not red), they seem to be having a party making money off you.

It is a lot like credit card companies. Any excuse to make money will do. Here's a heads-up on the many ways credit card companies could make money off you. (Want to know how banks make you poorer too? Read this! )

You don't pay the minimum amount due
They are just waiting for you to forget. Even a day's delay lands you with a late payment fee. This fee varies from bank to bank. If you do not pay for two consecutive months, you become a defaulter.
Collection strategy then varies depending on your risk score, which is calculated from the amount outstanding, past record, individual profile, profession. And then, further transactions are blocked.

You revolve your balance
Credit card companies give you a tempting option to pay a minimum prescribed amount and carry forward the rest to the next billing period. Don't be fooled.

You pay a hefty interest (2.45 per cent to 2.99 per cent every month!), on the outstanding amount. When you carry a balance from month to month, there is no grace period on new purchases with most cards.

Photograph: Jeff J Mitchell/Getty

1 | 2 | 3 |  

e-mail: Team Wealth

Suggest a story idea! Write to us!