Living on Credit
This is not something new...in fact, I have seen many people both here and abroad that live on Credit from the day they first obtained a credit card from the financial institutions.
Imagine living on future money... money that you have not earned but somehow the banks are willing to extend the kind gesture to all the poor souls knowing that they can squeeze the exorbitant interest charges that accrues until you finally paid off all outstanding balances. Yes, you can continue to enjoy your flamboyant lifestyle, nice watches, pub hopping, golf and designer cafe etcetera. When the spending reaching the pre-approved limits, a very sweet voice from the card centre miraculously phone you and say, congratulations sir/madam...we have increased your credit limit...you can continue to live like King but don't forget to pay the minimum payment. Phew! you said...and thought you need to go back to your frugal lifestyle but nooo...my lucky star is still shining.....
Wake up my friend!
If you think that the minimum payment is actually 'minimum', then you are damn wrong. The minimum payment is merely the sum of money that covers the interest charges (ranges between 18% - 19% p.a.) for unpaid credit balances plus possibly a tiny fraction of the original balance from your spending on card. If you read the fine prints on your credit card's statement you should see the explanation on 'minimum payment' that roughly translated into "If you pay minimum payment every month...you will eventually clear all you credit debt with the bank." Yeah right @#*$% you fcuking misleading pigs...may be in the next 5 or 10 years you can probably achieve that.
The interest is always compounded and the system at the bank already calculated that the cardholder would continue to be their slave for as long as they continue to pay minimum payment every month. It's like paying minimum payment of 10-00 bucks where 7-00 bucks cover the interest charges and 3-00 for the outstanding balances.
So, if you are among those who still enjoy living on Credit but paying minimum payment every month...I wish you well and do take care of yourself as you need to live long enough to repay all your credit card debt.
Don't worry .... the bank will always be there with bunch of sweet voices at their call centres servicing all you loyal profit contributors.
Imagine living on future money... money that you have not earned but somehow the banks are willing to extend the kind gesture to all the poor souls knowing that they can squeeze the exorbitant interest charges that accrues until you finally paid off all outstanding balances. Yes, you can continue to enjoy your flamboyant lifestyle, nice watches, pub hopping, golf and designer cafe etcetera. When the spending reaching the pre-approved limits, a very sweet voice from the card centre miraculously phone you and say, congratulations sir/madam...we have increased your credit limit...you can continue to live like King but don't forget to pay the minimum payment. Phew! you said...and thought you need to go back to your frugal lifestyle but nooo...my lucky star is still shining.....
Wake up my friend!
If you think that the minimum payment is actually 'minimum', then you are damn wrong. The minimum payment is merely the sum of money that covers the interest charges (ranges between 18% - 19% p.a.) for unpaid credit balances plus possibly a tiny fraction of the original balance from your spending on card. If you read the fine prints on your credit card's statement you should see the explanation on 'minimum payment' that roughly translated into "If you pay minimum payment every month...you will eventually clear all you credit debt with the bank." Yeah right @#*$% you fcuking misleading pigs...may be in the next 5 or 10 years you can probably achieve that.
The interest is always compounded and the system at the bank already calculated that the cardholder would continue to be their slave for as long as they continue to pay minimum payment every month. It's like paying minimum payment of 10-00 bucks where 7-00 bucks cover the interest charges and 3-00 for the outstanding balances.
So, if you are among those who still enjoy living on Credit but paying minimum payment every month...I wish you well and do take care of yourself as you need to live long enough to repay all your credit card debt.
Don't worry .... the bank will always be there with bunch of sweet voices at their call centres servicing all you loyal profit contributors.
posted by spectrakia at
6:12 pm
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