Credit Account Minimum Payment...LOL!

[drebo]

So I bought a new bed earlier this month, and because they offered 24 months of 0% interest, I went for it. It's GE Capital Bank as the creditor.

The balance is ~$2800 and in my first bill, they have those payment estimation things...if I pay the minimum amount every month, I'd end up paying almost $10,000!!!! WTF!

Are stupid people really that stupid?

 

[Schfifty Five]

So I bought a new bed earlier this month, and because they offered 24 months of 0% interest, I went for it. It's GE Capital Bank as the creditor.

The balance is ~$2800 and in my first bill, they have those payment estimation things...if I pay the minimum amount every month, I'd end up paying almost $10,000!!!! WTF!

Are stupid people really that stupid?

You just now realized this? Welcome to a century ago.

 

[OutHouse]

yup, they wouldnt offer it if they didnt make money beyond the sale of the item.

 

[zerocool84]

You just now realized this? Welcome to a century ago.

This

/thread

 

[cronos]

The question is why would you pay the minimum every month? A 24-month 0% interest means you have to make sure that you pay it off before 24-months passed or it's completely pointless.

 

[drebo]

The question is why would you pay the minimum every month? A 24-month 0% interest means you have to make sure that you pay it off before 24-months passed or it's completely pointless.

Well, that's obvious to you and to me...but apparently, some people LIKE the 29.99% APR.

 

[drebo]

You just now realized this? Welcome to a century ago.

Oh, I've known about this for a long time...It's just not often that I get a physical bill from anyone anymore, and I think it's funny that they actually spell it out.

I've never calculated the amount before, so to see that you could end up paying $10k for a $3k purchase is ludicrous.

Oh, yeah...they also mention that it'd take 15 years to pay off.

 

[God Mode]

They need to dumb finance down even further. Many people can barely operate their TV remote and they expect them to know percentages and fractions?

It's like explaining something to a 5 year old in college terms.

 

[Leros]

Are stupid people really that stupid?

Yes.

People will rent to own a $300 item and end up making $2000 in payments. It never occurs to them.

They're incapable of saving $300, but they can always find $20 to make their monthly payment.

 

[edro]

You charge things to credit? LOL

 

[kranky]

Probably a good thing that that info is required by law now on credit card statements. Maybe it will help some people realize how costly a 30% APR is, and they learn to start thinking about overall cost on everything they finance.

You still have people buying cars and telling the salesperson "I can afford a payment of $300" instead of worrying about what the overall cost will be. When it's all over, they agree to pay $300/month with a terrible APR and a 7-year term. But all the buyer cares about is getting that car with a $300/month payment.

Three years later they can't understand how they can still be upside-down on the car.

 

[sdifox]

the worst part is the minimum being more prominent than the full amount on the stub.

 

[acheron]

yep, I have a temporarily-interest-free loan from GE Capital too (kitchen remodel). they sent me the same thing. It's kind of hilarious.

 

[Doppel]

Are stupid people really that stupid?

Yes, they really honestly are.

Maybe it will help some people realize how costly a 30% APR is, and they learn to start thinking about overall cost on everything they finance.

But even if this is explained to many people, they'll keep living wrong. Everybody, even dumb people, know smoking is injurious but many start it up every year. You just can't force a horse to drink and many people are very, very stupid horses.

In financial matters even educated people often cannot get their heads properly around basic loan terms. If you want proof go start a thread in the garage on lease vs own, just for lols. You'll see all kinds of blanket, and wrong statements about either one.

 

[Triumph]

The worst part is you spending $2,800 on a bed. I hope that included mattress, box spring, carved oak bed frame, two night stands, deluxe mattress pad and sheets, and monthly door-to-door mattress flipping service. Oh right, today's mattresses are "no flip."

 

[njdevilsfan87]

You charge things to credit? LOL

Yeah. It was so stupid of me to get that 5% back at Amazon last quarter, and now getting 5% back every time I go buy groceries... Not to mention I can get something like 10% various gift cards with the rewards points, or just take the cash.

So you're telling me I could have just used a debit card all this time instead? Haha, good one.

 

[Triumph]

i use credit card for everything for the same reason. if i'm spending the money anyway, might as well get something for it.

 

[Texashiker]

The worst part is you spending $2,800 on a bed. I hope that included mattress, box spring, carved oak bed frame, two night stands, deluxe mattress pad and sheets, and monthly door-to-door mattress flipping service. Oh right, today's mattresses are "no flip."

You forgot the supermodel that was supposed to come with the bed.

 

[jlee]

Yeah. It was so stupid of me to get that 5% back at Amazon last quarter, and now getting 5% back every time I go buy groceries... Not to mention I can get something like 10% various gift cards with the rewards points, or just take the cash.

So you're telling me I could have just used a debit card all this time instead? Haha, good one.

Yep. In the last month or two, I cashed in for $300 in Amazon gift cards and $107 in statement credit. Thanks Chase! <3

 

[NetWareHead]

I always sign up for these deals, 12 months, 24 months zero interest if you pay the balance by the end of the credit term when I buy expensive items. I bought a bed, did the same thing as OP. I installed new carpeting in a rental unit, opened up a home depot credit card. I bought a dishwasher from Sears, new Sears account. Everything is paid for before interest charges start and I then close the account. I love it.

 

[waggy]

yeah its insane. My ex-wife's sister does shit like this all the time. A few years ago i got a 65inch TV (i paid cash thank you) and her boyfriend got all pissy. he does not like me at all and always has to 1 up me (think alky but a short stocky guy with a chip on his shoulder).

So what they do? went to rent-a-center and got a tv. a 65inch TV. they claimed they paid cash too but it had a rent-a-center sticker on its back (they had me hook it up to the Dish). She told my wife they were paying something like $150 a month for 36 month's...

/facepalm

IF i can't save up and buy it i don't get it (cars and houses are the only thing i use credit for)

 

[thecrecarc]

You charge things to credit? LOL

It's a free 30-day loan that pays you money for using it and boosts your credit score. Why wouldn't you charge things to credit? As long as you are responsible...

 

[Thump553]

NetWareHead: from what I understand closing the accounts may actually put a ding on your credit rating. I just let the accounts go dormant-sooner or later the lender will cancel them.

 

[waggy]

It's a free 30-day loan that pays you money for using it and boosts your credit score. Why wouldn't you charge things to credit? As long as you are responsible...

The 0% for 6-12 month things are a good deal IF you can/will pay it off. I got a lowe's card years ago when they had that and got a power washer, washer and dryer.

 

[NetWareHead]

NetWareHead: from what I understand closing the accounts may actually put a ding on your credit rating. I just let the accounts go dormant-sooner or later the lender will cancel them.

You are correct on that. I get monthly credit reports from my CU and I can see a 10-20 point ding when I close an account that recovers in about 3 or so months. I can live with that ding. Plus some of the accounts have a yearly fee that begins when the free interest term is up and Im not paying that.