A good article to read this time is ‘The Spendthrift Christmas Debt Chart ‘Vol 1 137 (CTG)
This chart is very interesting and it’s only for a interest @10% so I wouldn’t like to see if what it would be if it was around today’s interest 17.25% or store cards rate of 26% + that some are paying now! Around 10.99% are the average on low rate credit cards if you are carrying a balance over each month with fee of $49.00.
12 months interest @ 17.25% on $1000 = $1172.50 and that not adding in extra compound interest on interest nor fees. So if you were paying $49.00 in fees per year as well! What would it cost if was only thing you bought for that year? More than extra $221.50 (17.25%) on that $1000 on if you paid CASH for it.
If I can’t pay cash for a gift then I can’t afford to give a gift at that price. What I put on Credits Card is paid off before interest is paid on the card. If not then by next payday the sooner the better if I owe money on credits cards.

Note: Interest rates are what we are paying here in Australia.

Leave a comment: