Re: What's the Big Deal with APRs?
10-04-2012 06:43 AM
I don't get the rate fixation either. A lot of the cards I have have the highest rate since my history is so young and it does not bother me at all. I have never carried a balance and do not plan to.
Anyway, most people do not plan to carry a balance for a long time. Like you, they think they will be able to pay it off in a few months. Then they lose their job and were not saving money and the balances keep getting higher and higher. Another scenario is an emergency happens and they have to use all of their cash reserves. Without any money, those few months turn into six, then twelve, and so on.
In my opnion, you should avoid carrying a balance as much as possible. It may only be $4, but that is $4 you could have saved if you saved up for the clothes. I don't mean to knock you, but $200 for jeans seems silly, especially if you cannot afford them.
I have to agree with this. I also don't really care about my cards interest rates, I've never carried a balance and don't forsee it happening anytime soon. That being said, a lot of the time, people don't intend to carry balances for the long haul. They make a large purchase and plan to pay if off in like 3 months, but then something happens and their expenditures go up or their income goes down and 3 months becomes 6 months, 12 months or longer while the interest racks up.
Also, about the jeans. I'm sorry, but I just can't see paying that much for a pair of jeans, especially if you have to finance them. I get my jeans at Walmart for $15. I mean, it's your money, but I can't believe you can't put it to a better use than that.
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