Today I came about a blog from someone who successfully got herself out of debt using a loan from Prosper.com. Not that I think just anyone could do this but it’s certainly worth a look and maybe with a good story and collateral who knows. What was so “eye opening” about the post was the numbers were staggering, almost depressing. Check it out for yourself http://blog.prosper.com/2008/01/23/credit-cards-%e2%80%93-looking-at-the-cost-of-paying-the-minimum-due/#comment-307.
I can’t not tell you how many times I hear it each month debtors telling me they were paying the minimum and then it just got to be to much. Don’t let me be the first to tell you. Once you get behind two months or more on credit cards they will start hitting you with INSANE 30% interest rates. That will lead to much higher minimums and the after six months here comes the infamous charge-off. Let’s be clear I’m on your side 30% interest sounds more like a “vic” to me than a legit loan. The bank now see’s “you as a credit risk”. More like they have a bigger lobby in Washington.
So for all those out there paying the minimum (I do it too!). Do the math your bank account will thank you for it in 21.4 years.
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2 Comments until now.
What Credit card companies are allowed to do is disgusting if not stupid !
No wonder there are so many bank failures now they expect or demand the impossible from people wouldnt they have been smarter to drop their rates during hard times and even have a interest free year instead of pulling off all their tactics like late fees etc etc.
And now they are allowed to ask for a handout from the govt, the CC companies should be turned over to a debt collector ;) and let them get a taste of their own medicine but NOT bailed out!
Terri’s last blog post..Making Money at Home and Being Your Own Boss
The funny part is now they are paying people with high balances that pay the minimum balance each month to zero their accounts out. This crap never seems to end!
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