I'm beginning to hate banks

Krummhorn

Administrator
Staff member
Often the way Mike. I see there is a new company advertising a rate of 1% a day. That is 365% PA. Good huh.

teddy

And there will be fools who will jump at that 1% rate thinking it is an annual rate ... they will miss the "a day" and sign on the dotted line.
 

Chi_townPhilly

New member
Sr. Regulator
I enquired about taking a loan to pay off credit cards to try and get a reduced interest rate; but for a loan under £5K the interest rate was 18.9% if I wanted £15K the interest rate was under 10% - go figure!
The £5K loan figues to be repaid in a shorter amount of time- so the nearly 19% interest rate insures an ample "pound-of-flesh" even in the event of an early repayment. [That is- presuming that the terms even allow early-payment as an option.] The higher sum and nearly certain longer term for repayment protects the margin of a loan for a higher amount of principal.

Lots of people hold balances on credit-cards. A quick internet review shows that average US per-cardholder credit-card debt is over 4¾ thousand dollars. My rough-and-dirty math suggests that median debt of that nature is c. 2¼ thousand dollars. [So, the people who are in deep tend to be in really deep-- kind of like a reverse Χ² graph.]

Even if, a little like old Mickawber himself, I don't always do the best job of living up to it (I think I do better than he did, though), I'm still a big believer in The Mickawber Principle.
 
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