Where’s my soap box?
I need to rant.
In my work as a financial advisor, I encounter some really depressing cases. Recently, I’ve been doing more credit counseling in my practice than ever before (Merry Christmas, Mastercard). One of my clients has gotten his family into some pretty deep trouble, and they don’t even know it yet.
It’s this thing from furniture/electronic/random schtuff stores. The ad makes it look so good “NO PAYMENTS AND NO INTEREST FOR 2 YEARS!!” The idea, I suppose, is that you should pay off the balance owing before the 2 years is up. Of course, very few people do.
Do you people have any idea what the typical interest rate is on that stuff is when the two years is up? It varies, of course, but your average is sitting around 29.9%. That’s INSANE!
But a lot of people would likely expect something like that. I wasn’t suprised myself. But I certainly *was* surprised to learn the real villainous thing hiding in the fine print.
If you don’t pay off that balance before the two years is over, they will charge you 29.9% interest RETRO-ACTIVE OVER THE LAST TWO YEARS! So that $1500 plasma TV you bought on this plan? Yeah, they just slapped $900 to your bill in one shot.
What. The. **Censored**.
Now. These places offering these deals are not actually doing anything that is technically “illegal”. I’m not calling for police action against criminal activity. I do, however, believe that this practise is one that is grossly immoral, preying on people who usually don’t have the knowledge necessary to read and understand these contracts. These unsuspecting people sign on to these contracts, then get caught up in the business of life, while this contract sits quietly in their drawer, waiting like a predator for the interest “free” period to expire before pouncing upon and destroying the financial wellbeing of the people who were suckered into it.
It’s not illegal. But by golly, it should be.
OK. Done ranting. I’ll step off my soap box now.
Since writing this post micheal.janssens may have helped people, but has not within the last 4 days. micheal.janssens is a verified member, has been around for 2 years, 10 months and has 32 posts and 471 replies to their name.
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