[thechat] Hey Buddy, Can you Spare a Dime?

[Fred Jones]

>> Really? I don't follow how. Because after 5 years I'm only paying
>> 130%. Am I missing something?
>
> No, he's right. The interest rate is 11.15%. I hadn't checked it before

I suppose it's because 11% of the second year is less than the first
year. 20% less. So that's 8.8%. But calculating that 20% less each
year for 5 years, it's still more than 30% total. I still don't
follow. I would think it's actually .5% a month fixed which is 6% a
year. That times 5 years is the 30% that I am giving the bank.

> Did you get a notice that they changed their terms? The formula for
> figuring the monthly payment is not arbitrary. It is defined in the
> terms of your agreement. If your balance is not increasing and they
> have not sent you notice of changing terms, I don't see how your min
> payment could be increasing.

Hmm. I should ask them. Good point.

> What is the rate on your Visa debt?

Don't ask. Last I checked it was 17%. I can't get any more cards--I'm
maxed out. I tried and I got a $500 limit. LOL.

> So you took a cash advance?

On some. On others I actually did a balance transfer to my debit card.
That turns out to be a credit to that debit card which in English
means cash in my checking account. :)

That's a good trick to know actually. That or just open a PayPal
business account and send a payment to yourself and then deposit to
your bank. Yes, you pay 3% or whatever to PayPal, but in the end of
the day if it's still a good deal, then it's still a good deal. :)

F