Insanity and Interest

Posted by Isaac Nicolay | Posted in Credit Report | Posted on 14-02-2011

So you have bad credit? How desperate are you? Really, how desperate are you?

Imagine having a card with a $1000 balance and a 59% APR (yes, that is correct, 59%!!)

If you happened to land in dire straits (the trouble, not the band!!) and you were only able to make the minimum payment of 2%, it would take you 50 years to pay off that $1000.00 –(50 years, 5-0, Fifty!!) and along with the interest paid you would end up paying an astounding, yes, absolutely astounding(drumroll, please!!) $86,500,932,454.00

Well that is some pretty expensive money!

Apparently if you pay 3% of the balance the interest would bring that total down significantly to only $231,468,110.00

Still incredibly expensive money.

And not, absolutely not, never, never, never a good way to rebuild your credit. Remember what is the most important between your finances and your credit score?

And I didnt just make this all up. Nope. Not at all! In fact I found it on ABC news website. (take a look yourself!).

Apparently First Premier Bancard in South Dakota offered a card at 79.99% interest rate (it later got dropped down to the relatively more reasonablenot! interest rate of 59%).

And they directed their marketing efforts and targeted the people with bad credit.

One of the worst things about this whole store is that over 700,000 people signed up for the card.

700,000.desperate people!!

700,000 people who were fooled and foolish enough to believe that this might possibly benefit them.

700,000 people who bought into that whole nasty paradigm that you cant live without a credit card, that your credit score is the most important number and that these things are more important than your own financial peace and stability.

Its pathetic.

And sad.

Take care of your own finances first. Usury cannot and will not ever benefit the consumer. And thats you!

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