Oh interest rates!

[calmloki]

Just got a Wells Fargo card bill and noted that they charge a modest 14.5% interest on purchases and 25.5% on cash advances. Was thinking that was pretty reasonable credit card interest and then thought about people coming unglued at real estate interest approaching 6%.

Guess it is just what one is used to that makes the difference between interest and usury. Well, that and the state of incorporation.

We don't pay credit card interest BTW, but I have relatives who carry substantial card balances and do, while having local brick-and-mortar bank accounts paying them next to nothing on their savings accounts.

Is it just what people are used to or what?

 

[ERD50]

Secured (home mortgage) and unsecured (credit card) are two different animals. No comparison.

But yeah, carrying credit card debt just doesn't make sense other than in very specific, short-term circumstances. And especially when they have money in a savings account. All I can say is "financially illiterate"?

-ERD50

 

[old medic]

Our credit union card jumped from 9.5 to 12%.

 

[jollystomper]

Many people do not focus on the interest rate on the credit card. They focus on the minimum monthly payment. As long as they can cover that, they are good.

 

[Amethyst]

One of the earliest lessons I learned was not to charge anything on a credit card that I couldn't pay off in a month. I knew this before I qualified for my first card, in 1981.

And I was far from the best-informed young person on the block - in fact, people considered me quite naive. I just looked at the numbers (which back then were very high indeed) and realized I couldn't afford all that interest!

 

[jazz4cash]

I frequently see statements about average credit card rates being 16-25% as if consumers have no choice to use a lower rate card. I guess people take whatever card they can get, make the minimum payment and don’t know any better. I carried balances for many years but I found 0-2.99% promo deals. Right now I see NFCU has cards ranging from 6.74 to 18% but most are around 10%. I have no clue what my cards charge since they get paid off monthly.