4 ms·

> Having to carry a credit card balance isn’t much of a struggle. Let's say you put $400 on a CC that has 18% interest rate. By paying only the minimum payment

> Having to carry a credit card balance isn’t much of a struggle. Let's say you put $400 on a CC that has 18% interest rate. By paying only the minimum payment each month you end up paying a total of $598 after 4 years and 11 months. This means that for the next 4 years, a credit card is no longer a safe escape for you. A better example would be an emergency Root Canal at $1,600. This would take you 12 years and 7 months to pay off.

bluedino 7y ago
It'd be less than $150 to have the tooth extracted.
- metalliqaz 7y ago
  Damn right. Frickin' entitled americans think they have a right to fix their body parts when the obvious solution is to just yank it out/chop it off to save cash.
- Raphmedia 7y ago
  All fine and well if that's a tooth that's in the back. If it's a front tooth, you are going to have to then pay to get a fake one to put in its place. Having holes in your mouth will mess up your teeth even more in the long term.
mamon 7y ago
>> Let's say you put $400 on a CC that has 18% interest rate Wow, that's a hell of interest rate. In Poland there's regulatory law that caps interest rates for credit cards (and all types of consumer credits, really) at 11%, or 4x base interest rate set by Polish central bank. Applying the same logic to US would give you what, 9% interest rate? But I guess Americans would see that as messing with free markets :)
- qntty 7y ago
  18% is low. Most are closer to 21-24%
- ben509 7y ago
  Lenders in Poland still need to make a profit, so are they more restrictive in issuing cards, or is it harder to default on a loan? Or does the government subsidize them?
  - mamon 7y ago
    At 11% interest rate you can still make a lot of profit. I don't think banks are restrictive on issuing them, basically anyone who is gainfully employed can get one.
prepend 7y ago
Yes, it’s not fun. I agree. My point is that the article is not precise to be useful. If the article was about how 40% of Americans go through what you describe, that would make sense. Right now it includes the scenario you describe as well as “charged it this month, waited to pay it off next month.” How many Americans do either is useful for knowing the extent of impact.

bluedino 7y ago

It'd be less than $150 to have the tooth extracted.

metalliqaz 7y ago
Damn right. Frickin' entitled americans think they have a right to fix their body parts when the obvious solution is to just yank it out/chop it off to save cash.
Raphmedia 7y ago
All fine and well if that's a tooth that's in the back. If it's a front tooth, you are going to have to then pay to get a fake one to put in its place. Having holes in your mouth will mess up your teeth even more in the long term.

mamon 7y ago

>> Let's say you put $400 on a CC that has 18% interest rate Wow, that's a hell of interest rate. In Poland there's regulatory law that caps interest rates for credit cards (and all types of consumer credits, really) at 11%, or 4x base interest rate set by Polish central bank. Applying the same logic to US would give you what, 9% interest rate? But I guess Americans would see that as messing with free markets :)

qntty 7y ago
18% is low. Most are closer to 21-24%
ben509 7y ago
Lenders in Poland still need to make a profit, so are they more restrictive in issuing cards, or is it harder to default on a loan? Or does the government subsidize them?
- mamon 7y ago
  At 11% interest rate you can still make a lot of profit. I don't think banks are restrictive on issuing them, basically anyone who is gainfully employed can get one.

prepend 7y ago

Yes, it’s not fun. I agree. My point is that the article is not precise to be useful. If the article was about how 40% of Americans go through what you describe, that would make sense. Right now it includes the scenario you describe as well as “charged it this month, waited to pay it off next month.” How many Americans do either is useful for knowing the extent of impact.