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If you were bringing the balance back to 0, it would not be cheaper than using a credit card. What am I missing?
by CaveTech 5y ago
If you were bringing the balance back to 0, it would not be cheaper than using a credit card. What am I missing?
- lupire 5y agoYou're missing that financial illiteracy that causes someone to have enough money to reliably pay payday loans but not enough to pay their bills minus the loan fees.
- devoutsalsa 5y agoI was certainly trapped in debt for reasons.
- deleted 5y ago[deleted]
- devoutsalsa 5y agoThe interest rate on my credit cards was higher then the effective 24-ish percent interest rate I was paying (2% per month).
- CaveTech 5y agoIf you repay your card at the end of the billing period you do not incur interest. I ask this because if you were truthfully resetting to a $0 balance, your credit card was free. This is a common misconception.
- devoutsalsa 5y agoI didn’t have enough money to pay it off and keep it paid off. That probably wasn’t clear. I’d get paid and have to choose between paying off the debt and paying rent. The reason I would take the account to zero and then overdraw again was that the account would be closed if overdrawn for longer than 30 days.