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Originally Posted by Rep I only remember paying a monthly interest fee one time. The month after my wife and I were married.
We have used the save for it plan. It has worked out actually very well for us and I would recommend it.
One long term thing everybody can do is to encourage your state lawmakers to reinstate the old 21% interest rate cap on cards. Wisconsin eliminated it in the late 1980's.
I think most businesses can survive earning 21%. |
It is not in the credit industries best interests to have a cap. They gain more profit from fees and interests than they do from those who pay the bill. You have to understand how money works in just about every banking system on the planet today:
"Money is destroyed when loans are repaid. Money is created when loans are granted."
Creditors earn money from the fees merchants charge for the transactions used with debit and credit cards.
Creditors earn money when people use credit cards in volume. Credit cards entice applications with 'incentives.' Like cash back, travel, or affinity cards. I like that affinity card. You know the organizations that the card has a logo on actually gets a part of the profit from each use of that card LOL. Love that, great scam.
Credit Card companies make money when you pay more in interests and fees. Now combine that with the fee the creditor earns from you making the transaction; the take into consideration that if you have a basic credit card you earn nothing but time before your money is due. What do I mean by 'that' :
Cash Back = Rebate.
Rewards: Hotel, gas, reservations, etc.
Travel = Investment i.e. Hotel, rentals, etc.
Affinity Cards: You rarely get anything back, but two businesses profit regardless.
Now combine debt + no rewards +/- affinity = foolish!
Marketing Skills = Priceless!