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Credit card interest question (I'm math-dumb)

Discussion in 'Off Topic [BG]' started by Eric Perry, Jan 6, 2009.

  1. Okay,

    I owe approx $13,500 on my only credit card I've ever owned. I know, I know... it's high. Whatever. Grad school ain't cheap, okay? :( For whatever reason, a new Bank bought out my old CC account. Since then, monies applied to interest seem awfully high...

    My interest rate is 14.99% (I got shafted on a payment getting there a few days late once and they rammed me on interest rate)! :mad: Question is, last month I paid $350. The min. payment was I think $324. Well, $190 of that $350 went towards interest. That seems ridiculously high. Is that crazy-high, or is it normal considering principal / interest rate?

    Thanks in advance!
  2. fitbass3p


    Oct 7, 2006
    Madison, WI
    Well, there's something to consider:

    14.99% of $13,500 is $2025 supposed interest.
    Monthly, that's $168.75.
    Wiggle in a few bucks for compounding interest, and it's not really all that far off.
  3. MJ5150

    MJ5150 Moderator Staff Member Gold Supporting Member

    Apr 12, 2001
    Olympia, WA
    Eric....buddy...you should know better. Any thread of this kind always starts out with...."this friend of mine from work...."

    :D :D

  4. Thanks. I don't like your answer, but thanks! :D

    lol! Nope, in this instance, I'm the knucklehead solely to blame for that balance! :mad:
  5. tplyons


    Apr 6, 2003
    Madison, NJ
    Yep, perfectly normal. Credit cards make tons of money off people like you.

    I pay no more than $20 in interest a month, but then again, I only owe a grand.
  6. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    Yeah that happened to me. call them up and negotiate your rate down. If they don't tell them that you'll switch cards.
  7. Deacon_Blues


    Feb 11, 2007
    You've better turn that into a lower interest rate bank loan instead. That sum is too big to allow an interest rate like that. 15% interest is pretty normal to my understanding and doesn't mean many dollars per month on smaller credits, but on $13000, you end up with much higher sums.

    Otherwise, even better would be to get rid of as much as possible of that credit. Is there perhaps something you can sell? Can you live with a cheapass car for a year, for instance? That could perhaps be a solution, unless you have a loan for a car as well.
  8. tplyons


    Apr 6, 2003
    Madison, NJ
    +1... even if you can get yours down a few points, you could be looking at $40-50 a month saved on interest, which you could put towards your principle instead.
  9. People like me??? if that means "people that helped put themselves through graduate school with the help of a credit card", okay. If not, I think I take offense to that. :meh:
  10. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    I'm one of those people. It's killing me. :(
  11. tplyons


    Apr 6, 2003
    Madison, NJ
    That's what I mean. And I'm starting to do the same. I was just laid off, and have a semester left of school, just got a new car, and am paying off a motorcycle.

    I'm charging groceries right now, trying to find a part time job to pay for my living expenses, but I can't afford anything extraneous. I'm having a hard time coming up with the scratch to pay for an extra class to graduate on time.

    No offense intended.
  12. Non taken.... Sorry, I initially did take it the wrong way. Just frustration. Sorry Tim.
  13. Thunderitter

    Thunderitter Bass, the final frontier... Supporting Member

    Jun 6, 2007
    Just miss a payment and see where the set the rate! Most cards have a 'small print' rate of closer to 30%

    I know there's talk of passing law to prevent this default hike but not sure if it's been put in place yet.
  14. fitbass3p


    Oct 7, 2006
    Madison, WI
    Yeah...I had a card do that once, on a balance of about $4000. Went from 6.9% to 26.9% overnight...

    Needless to say, I ate ramen until I paid that one off asap. And bitched them out, of course.
  15. beaglesandbass

    beaglesandbass Think first, then post? Staff Member Gold Supporting Member Supporting Member

    Aug 14, 2001
    Philly Suburbs
    yeah... it sucks...
    i owe about 4 grand + 8 grand on a car loan

    but i just got another job solely for the purpose of getting that 4 grand down.

    it sucks... but you're not the only one going through it right now..

    a lot of people are.
  16. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    you're not alone buddy, I've been there. I pretty much took Deacon's approach - I took out a small loan with much lower interest and applied that towards the card, it didn't pay it completely off but got in under control. That, and then I also sold off a bunch of basses and such and ended up finally closing the card out. Once I closed the card out, I took the money that I would have been paying for the card and paid off the bank loan. It worked swimmingly and I be no jean-yus..
  17. steve21

    steve21 Inactive

    memo to self: hold off on a credit card for as long as humanly possible
  18. tplyons


    Apr 6, 2003
    Madison, NJ
    I wouldn't. My credit card has saved my ass more than a few times.

    I wouldn't be eating right now if it weren't for my credit card.
  19. steve21

    steve21 Inactive

    hence my "as long as possible" thing

    I know I'll probably need one in the future

    But I'd rather have to not worry about having a CC 'til I'm a bit older/smarter/more mature with money so I know not to use unless needed (FWIW I think grad school's a good reason)
  20. Thanks guys. For what it's worth, that card has not been touched for exactly one year... Since I registered / bought books for my last grad semester. I have no plans of using it, or any other credit card, again unless absolutely necessary. Like I said before, it's the only credit card I've ever owned.

    I'm going to look into a personal bank loan to pay it off. I have great credit, so getting the loan should be no problem.