Comments on: 32% Credit Card Interest Rates — Brought to You By South Dakota and Citibank http://www.zipdebt.com/blog/credit-card-usury Straight Talk by Charles Phelan on Debt Settlement & Other Debt Reduction Strategies Thu, 04 Dec 2008 19:06:53 +0000 http://wordpress.org/?v=2.6.1 By: Heather http://www.zipdebt.com/blog/credit-card-usury#comment-15073 Heather Sun, 23 Sep 2007 18:25:35 +0000 http://zipdebt.com/blog/?p=24#comment-15073 Try 40% with Discover since I have missed 2 payments. It is insane. Try 40% with Discover since I have missed 2 payments. It is insane.

]]> By: Gavin http://www.zipdebt.com/blog/credit-card-usury#comment-88 Gavin Mon, 17 Jul 2006 04:29:23 +0000 http://zipdebt.com/blog/?p=24#comment-88 I feel your pain. I have 1300.00 in debt with Sears Gold Master Cards and they are charging me a 32% rate. I feel your pain. I have 1300.00 in debt with Sears Gold Master Cards and they are charging me a 32% rate.

]]> By: Charles http://www.zipdebt.com/blog/credit-card-usury#comment-74 Charles Sat, 15 Jul 2006 19:51:17 +0000 http://zipdebt.com/blog/?p=24#comment-74 Responding to the question from Gary, the $10,000 example in the article was calculated at a hypothetical 32% interest to determine the 40-year payout scenario. So the 32% was an assumed number based on a typical interest rate for consumers that have fallen behind on payments and experienced the default interest rate. You raise a good point, however, because in the real world, the bank would add late fees and possibly overlimit penalties as well. Just looking at late fees, now commonly set at $35, if you fell behind one payment and couldn't catch up, this would add another $420 in cost per year, or an extra 4.2% on $10,000, so the true interest rate in that scenario would be more like 36.2%. Add overlimit penalties and it would be even higher. Also, you asked where you could get info on running calculations like the one in the article. Just head over to www.bankrate.com and check out their suite of credit-related calculators. You can run calculations showing the true cost of minimum payments, time to pay off at certain assumed payments, and other scenarios. Responding to the question from Gary, the $10,000 example in the article
was calculated at a hypothetical 32% interest to determine the 40-year
payout scenario. So the 32% was an assumed number based on a typical
interest rate for consumers that have fallen behind on payments and
experienced the default interest rate. You raise a good point, however,
because in the real world, the bank would add late fees and possibly
overlimit penalties as well. Just looking at late fees, now commonly set
at $35, if you fell behind one payment and couldn’t catch up, this would
add another $420 in cost per year, or an extra 4.2% on $10,000, so the
true interest rate in that scenario would be more like 36.2%. Add
overlimit penalties and it would be even higher.

Also, you asked where you could get info on running calculations like
the one in the article. Just head over to http://www.bankrate.com and check
out their suite of credit-related calculators. You can run calculations
showing the true cost of minimum payments, time to pay off at certain
assumed payments, and other scenarios.

]]> By: Gary http://www.zipdebt.com/blog/credit-card-usury#comment-67 Gary Sat, 15 Jul 2006 06:02:20 +0000 http://zipdebt.com/blog/?p=24#comment-67 I am curious, when you run out the numbers as you did above in your article on a 10K CC debt, what did the ACTUAL interest rate turn out to be on that? Was it really 32% or was it higher? Like to know that answer if possible. Where can I get information on how to run the numbers on a CC debt like you did above to find out the term and amount of interest on a specific amount over that period of time. Thanks in advance of your response. Just ordered your free report and am looking forward to reading it. Thanks for making it available. I am curious, when you run out the numbers as you did above in your article on a 10K CC debt, what did the ACTUAL interest rate turn out to be on that? Was it really 32% or was it higher? Like to know that answer if possible. Where can I get information on how to run the numbers on a CC debt like you did above to find out the term and amount of interest on a specific amount over that period of time. Thanks in advance of your response. Just ordered your free report and am looking forward to reading it. Thanks for making it available.

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