Social responsibility and big business
Jun. 6th, 2011 06:04 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
milktreeRemember when the credit card companies got taken out behind the woodshed and dad took out his hooked belt?
No? Neither do I. That would have been nice though.
I do remember that once upon a time they didn't have to print on credit card statements how much you'd pay in interest if you only paid the minimum, and then there was some legal wrangling, and now they have to tell you.
It's amazing how something that should be good for consumers can be distorted.
An example:
My credit card bill this month is about $2,600. (it was an expensive month). My minimum payment is $30. They provide a little table saying how much interest I'd pay, and how long it'd take me to pay off my bill. Here is it:
Wow! Over $600 savings! I'll take that plan!
Wouldn't it be great if there was another row that said, "If you pay off the whole balance this statement, you'll have no debt, and you'll save $1,104!"
Maybe it should say, "This month's balance will cost you 108 payments of $30 if you pay the minimum and stop using the card entirely."
Nah, that'll never work. People would stop using their credit cards if they did that.
No? Neither do I. That would have been nice though.
I do remember that once upon a time they didn't have to print on credit card statements how much you'd pay in interest if you only paid the minimum, and then there was some legal wrangling, and now they have to tell you.
It's amazing how something that should be good for consumers can be distorted.
An example:
My credit card bill this month is about $2,600. (it was an expensive month). My minimum payment is $30. They provide a little table saying how much interest I'd pay, and how long it'd take me to pay off my bill. Here is it:
| If you make no additional charges using this card and you pay.... | You will pay off the balance shown on this statement in about | And you will end up paying an estimated total of... |
| Only the minimum payment | 7 years | $3,704 |
| $86 | 3 years | $3,099 (Savings=$606) |
Wow! Over $600 savings! I'll take that plan!
Wouldn't it be great if there was another row that said, "If you pay off the whole balance this statement, you'll have no debt, and you'll save $1,104!"
Maybe it should say, "This month's balance will cost you 108 payments of $30 if you pay the minimum and stop using the card entirely."
Nah, that'll never work. People would stop using their credit cards if they did that.
