Customer interest in 79.9% credit card is 'phenomenal'

"The company offering the sky-high-interest-rate card to consumers with poor credit says the response has been great."

http://articles.moneycentral.msn.com/SmartSpending/default.aspx?feat=1516489

Sigh.

and default all in the same month.

:thumbsup:

"For just $25 a week, you can own a computer."

the sales person was telling me about some of the "deals" per 'nothing down for x number of months'. When the interest rates were described (after the pitch of how little a month it would cost)... and how long one would pay and calculating how much over the selling price it would cost, I was a bit aghast.

Our society is pretty illiterate per home finances. When it was described (how much more one pays in the end), it was hard to believe that any one would agree to those conditions (rather than put that much aside each month, and much sooner than one would 'pay off' on the 'credit' conditions. Until one realizes how many questions I had to ask to get the person to detail that info.

Am guessing that crowd (that goes for the $25 a week computer), is much larger than we would like to admit.

Side note: hope you survived the storms okay. I had a number of friend in Wisconsin postpone travel trips to Indiana due to the storms.

:hi:

that you weathered the storm! :hi:

monthly rates are meaningless.
Of course, we know the CC card companies are just hoping and wishing that you carry even a teeny balance just once. That's all it would take to start the perpetual debt game.

Just to re-establish credit by showing monthly on-time payments.

I have to wonder what the percentage of folks signing up are that intentional/disciplined. I doubt that those pushing the cards are terribly upfront about what it means if one doesn't pay it off right away (per nearly double cost of purchases, if it isn't paid off quite quickly.)

and I bet the interest starts day one of the charge, too.

Makes usury easy and convenient!

They destroy your credit history which in the long run is probably worse.

Don

You can get cc's for with a much lower rate than 79.9 even if you have a bankruptcy. Most of the fix your credit/start over cards offer a deal for a yearly fee and 18-22% ...or are those all gone now? My wife just got another 18% card with no yearly fee and she went through a bankruptcy 2 years ago. Clearly the 79% cc is for the most foolish of people.

thanks to the Bush Admin.

When they don't get paid

selling steaming piles of crap.

deluxe steaming pile with extra, bonus crap. :shrug:

A huge amount of junk mail is never even opened, it just goes straight from mail box to trash can.

If you send out 100 pieces of junk mail, and manage to get 2 people among 100 recipients who get through all of the steps of actually bothering to open the mail, looking it over to see what the mail is about, dropping their suspicions that they're dealing with some kind of scam, filling in a form, putting that form back into a return envelope, and dropping that envelope back into a mail box, you're doing quite well as far as the world of direct mail is concerned.