I once heard that there’s a credit card company that operates a little differently than one might expect. Under normal circumstances, you get a credit card, go out, buy a $100 pack of Cadbury Eggs, and charge it to your credit card. Then later, the bill comes. You pay the $100, and you’re set. Mission Accomplished!
But this other company is different. You buy the $100 pack. Wait around. The bill comes. Says $100. You pay $100. And they charge you interest. They say you didn’t pay enough. They say, “You need to pay enough to cover any possible interest. We’ll credit your account with anything leftover.” So what you should have done was pay $110, and get $10 back later. Instead you got charged interest …on what? On nothing!
Now, I’m not really sure if that’s what happened. I only heard this story once, and it hasn’t happened to me personally. But I think it’s pretty lame. It’s the kind of thing you have a problem wrapping your head around, and yet some company has that rule for some reason. I’ll bet there are a lot of similarly messed up rules, and that’s why so many people are having debt problems. At least there are plenty of debt consolidation articles to read.If you enjoyed this post, I'd be delighted to have you as a subscriber to my RSS feed.