Everything Attachments - Bankrupt?

mcmxi

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'small potatoes' ?
My MC CC has 19.97% interest rate.Call it 20 for easy numbers...
On a $3000 purchase(a small,economy EA grapple ? ) that's $600 interest in a year !
So.. in 6 months that's about $300 Interest.
That's about 10% of the purchase price of the grapple, that you never ever got
I'd like to think most here would have better things to do with $300 than give to the CC company !

BTW I used American greenbacks, didn't want to convert to Canuck Bucks as I didn't want to scare everyone.
Is that Canadian maths? The interest on $3,000 over 12 months at 20.0%, and assuming 12 payments of $277 per month, is around $330. If you pay the $3000 back in 6 months that's about $160 of interest.

Having that grapple for those 12 months might save or even earn you money. Worst case you get to enjoy it for 12 months sooner than if you saved up for it before buying it.
 
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GreensvilleJay

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Not too sure where you got payments of $277 a month from.
With EA you pay 100% up front, that's $3000 on your credit card

$3000 x .20 (aka 20%) is $600. Simple interest , not compounded btw...which CC will do as outstanding balance is increasing.....)

heck 10% of $3000 is $300, so 20% has to be $600.
 

rc51stierhoff

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Is that Canadian maths? The interest on $3,000 over 12 months at 20.0%, and assuming 12 payments of $277 per month, is around $330. If you pay the $3000 back in 6 months that's about $160 of interest.

Having that grapple for those 12 months might save or even earn you money. Worst case you get to enjoy it for 12 months sooner than if you saved up for it before buying it.
I am not sure what that is but my best guess is maybe it was Loonie math 😉.

I did not understand the original comparison of buy on credit to pay that much interest…to each their own.
 
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North Idaho Wolfman

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Not too sure where you got payments of $277 a month from.
With EA you pay 100% up front, that's $3000 on your credit card

$3000 x .20 (aka 20%) is $600. Simple interest , not compounded btw...which CC will do as outstanding balance is increasing.....)

heck 10% of $3000 is $300, so 20% has to be $600.
Your numbers only work if you paid the interest every day and kept a running balance day to day at $3000.
1710969559276.png
 
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mcmxi

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Not too sure where you got payments of $277 a month from.
With EA you pay 100% up front, that's $3000 on your credit card

$3000 x .20 (aka 20%) is $600. Simple interest , not compounded btw...which CC will do as outstanding balance is increasing.....)

heck 10% of $3000 is $300, so 20% has to be $600.
I have spreadsheets that I set up for such things. Here's a screenshot of the table I made for your $3,000 credit card payment. You can see the formula I used which is standard banking stuff.

I took your comment about paying off the credit card balance over 6 or 12 months. So you can treat it like a bank loan where you pay equal amounts each month until the balance is paid off.

It's common knowledge, but the interest is tied to the balance, so paying more on the front end of the loan can save a lot of interest. In the example below, you pay 72% of the interest in the first 6 months.

loan_calculator.jpg
 
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GreensvilleJay

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I would have to ask my CC Company to 'run the numbers' for a $3000 monthly balance on my account to see what the interest charges are.
In 40+ years have never paid a cent for interest, always pay off the monthly balance.
 
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North Idaho Wolfman

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I would have to ask my CC Company to 'run the numbers' for a $3000 monthly balance on my account to see what the interest charges are.
In 40+ years have never paid a cent for interest, always pay off the monthly balance.
This is where you are getting the math wrong...
It's not a 3000 balance through the life of the loan the balance and interest goes down each month.
 
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GreensvilleJay

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You assumed someone was paying down the cc balance, I wasn't.

If you redo the math with 3K owed for 6 months ,you'll get close to $300 interest.
some people don't pay off their cards every month, some just the minimum amount,other maybe pay 1/2 or a few hundred ??

What I don't understand is why anyone would put $3k(or really any amount ) on their card IF they don't pay if off in full when due.
 

fried1765

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You assumed someone was paying down the cc balance, I wasn't.

If you redo the math with 3K owed for 6 months ,you'll get close to $300 interest.
some people don't pay off their cards every month, some just the minimum amount,other maybe pay 1/2 or a few hundred ??

What I don't understand is why anyone would put $3k(or really any amount ) on their card IF they don't pay if off in full when due.
MILLIONS do exactly that.......every month!
Seems crazy,......but fact!
 

mcmxi

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You assumed someone was paying down the cc balance, I wasn't.

If you redo the math with 3K owed for 6 months ,you'll get close to $300 interest.
some people don't pay off their cards every month, some just the minimum amount,other maybe pay 1/2 or a few hundred ??

What I don't understand is why anyone would put $3k(or really any amount ) on their card IF they don't pay if off in full when due.
Oh ok, so you're saying that the person isn't paying off the $3,000 balance at all. So why stop at 6 months or a year in your example? If they haven't paid off the initial purchase price after a year, what would make them pay it off in two, five or ten years?
 
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rh74

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I wasn't going to respond to this whole CC interest thing, but what the heck, might has well stir the pot. The interest is calculated at 1/12 of the annual APR per month on the remaining balance (this also includes any late or yearly fees). So for simple math if the APR is 24% the monthly rate is 2%. The amount of interest accrued each month is going to very based on how much you pay that month. If for example you just make a minimum payment, which is normally less than the amount of interest that accrued for the month, you are never touching the principle and compounding the interest all the while digging a much bigger hole for yourself. If pay half of the balance amount for the month your remaining balance will be half the balance plus 2% in interest.

The math for a CC is not simple, because there's to many variables ( new purchases, remaining balance, fees, and variable payment amounts) in the calculation.

The bottom line is CC's are bad loans, with way to many gotcha's. CC companies don't want you to pay off the principle or the interest. Just make the minimum payment so they can keep adding up the interest and fees.

I of course use a CC, but I also pay the balance in full each month. I'm a believer in if I don't have the money for it, I don't need it. Plus I don't like paying interest on something that losses value while I'm making the payments. Also keep in mind this is my thought on buying something for personal use. If this a business purchase and I can make money with the item, well that's a whole different math problem, but I would still use a different lending option that had had fixed payments and lower interest rate.
 
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North Idaho Wolfman

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You assumed someone was paying down the cc balance, I wasn't.

If you redo the math with 3K owed for 6 months ,you'll get close to $300 interest.
some people don't pay off their cards every month, some just the minimum amount,other maybe pay 1/2 or a few hundred ??

What I don't understand is why anyone would put $3k(or really any amount ) on their card IF they don't pay if off in full when due.
I float several thousands of dollars on many projects all the time, Money does not come in as fast as money needs to go out so The CC does the job of a quick and simple loan when needed, I equate it to the cost of doing business.
 
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Workerbee

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I float several thousands of dollars on many projects all the time, Money does not come in as fast as money needs to go out so The CC does the job of a quick and simple loan when needed, I equate it to the cost of doing business.
So, why not set a line of credit up at your local bank? Interest rates would be much less than a cc. It would seem to me that any legitimate business would have one.
 
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chim

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Our CC is paid full every month. For us a CC is handy, allowing us to write one check to pay many invoices. It also provides a certain amount of protection in the event of a bad purchase experience. Some here have seen that advantage with purchases from EA.

We don't buy anything we can't pay cash for. The only exception would be an investment property. If one can afford payments on loans, he can also put that money aside till there's sufficient cash to make the purchase.

Interest can be earned on money being accumulated, where interest is a cost on borrowed money. Lack of patience and self control prevent many people from getting ahead.
 
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North Idaho Wolfman

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So, why not set a line of credit up at your local bank? Interest rates would be much less than a cc. It would seem to me that any legitimate business would have one.
I have one of those too that we use. ;)
 
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old and tired

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Unless Ea contact Google, and tells them they are tits up, then Google will continue to show open and closed times. Just beware.
ea.jpg


"Confirmed by this business..." I had reported to google that EA was dead and they changed the listing to "permanently Closed", a while back... guess they changed it again.
 
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