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

[Fred Jones]

> Nope.  A 6% loan on that amount would be $338.32 a month.  You need to look up the amortization schedule and P&I (principal and interest) financial equations to correctly compute compounding interest - if you want to be on the same page talking to the bank folks.  {Compounding is the key word here.}  Here is a link to a loan mortization calculator (you can find the equations themselves elsewhere):
> http://www.amortization-calc.com/
>
> Plug in $17,500 -- 11.15% interest rate -- 5 years
>
> The calculator will spit out a monthly payment of $381.80.

Right. I see now that this is clearly what the mortgage calculator
says. So now it seems more clear why the bank is happy to do it, and
it doesn't change the fact that it's far better than my Visa. Thanks
for clarifying the details.

> I'm sure you already know, (I think we talked about this a few years ago maybe?), but you have to watch those low interest 'cash advance' things on your credit card because those amounts slide underneath the revolving charges and get paid off last - which, if you normally float a balance, means they accrue interest for a longer period of time than a separate loan would -- which translates to a higher "effective" interest rate than they are advertising.  Just something to watch out for ... they ain't doing this stuff to be nice to folks!

RIghto. I have thus far been able to only use one CC for
purchases--the rest that are low API I don't use them. :)

Thanks, guys.