[Freakazoid]

Originally Posted by greycrx87

I did not have a chance to speak with them today, but you are right the numbers dont add up considering my first payment being 500 bucks.

That would leave me with $3,800 and 11 months to go.

How did these fcks come up with $1,089

huh? you said 4200 total cost...but then you say 3800 left with a500 dollar payment? I don't understand?

[kyle335i]

Originally Posted by greycrx87

On 09/10/2009 I bought $4,200 worth of appliances, they had a promo LOWES/GE credit card no interest for 12 months, as of last month I had $2,800 balance and sent a check for $1,000

Today I received a new statement and it had $1,089 of deferred interest added and my balance is still $2,800

I went back and read the fine print: if the promotional balance is not paid in full within the promotional period, interest will be imposed from the date of purchase at a rate of 22.99%

I don't know how I missed that but man I AM SO PISSED OFF right now...

what is my chance of fighting this over with them...the promo was 12 months... Advice???

The same thing happened to me but i bought $10,000+ worth. Same rate applied. I was screwed for close to 4 grand. I feel your pain.

[MediaArtist]

I have one credit card. I think I'll be keeping it the way.

[shamoo]

I'm sure it's been mentioned numerous times already, but that's how ALL promotions involving deferred interest works.

0% interest for X months. X+1 months later, you get hit with it all together.

[Saintor]

If I am not mistaken, about every time that you apply for a credit account, your FICO score is affected.

[BTM]

Originally Posted by Saintor

If I am not mistaken, about every time that you apply for a credit account, your FICO score is affected.

Provided they do a hard credit pull, this is correct

[darkcloud]

Originally Posted by FStop7

WOW

that is a shit deal

sorry OP, you definitely should not have signed up for that one

Consumer credit comes in all kinds of different flavors. Some of them are pretty good, as people have been pointing out. Some of them are utter garbage, as others have pointed out. IMO the "12 months same as cash w/ deferred interest" offer is strictly in the garbage category. To hit you for the full amount of interest even if you still owe only a small portion of the original balance? You may as well beg to be screwed over.

WOW to you.

They aren't garbage unless you can't keep track of your bills. This is easy. Even at $4000 over 12/mo the minumum payments they set up deliberately don't pay off the $4000 in hope your dumb ass doesn't notice and they rake you over the interest coals.

Paying the offers off is easy. You buy $4k worth of whatever. You have that $4k in hand but this offer is made. Well instead of handing over the $4k right then you take the offer then divide the $4k over several month shy of the end date. So 12/mo you plan to pay off in 8/mo. You then make your own payments of $500/mo. You then didn't come off your $4k and were able to spread it over 8 months for free incase of any unforseen issues you may incurr elsewhere.

Originally Posted by texasmojo

4200 is a lot to pay in 1 year too.

Really. You pay more then that a year on a lot of things. Like a car payment or rent/mortgage. Even vacations. My GE appliance lineup cost me $5,500. But I needed everything at once. This is not typlical to replace every appliance in your kitchen at one time unless you just did a major remodel. Like I did and I assume the OP did as well.

[TK-421]

Originally Posted by MediaArtist

I have one credit card. I think I'll be keeping it the way.

That right there, I'd say, is one of the reasons you have an RS. People in general could live so much better (economically speaking) if they managed their money better.

[Feyd]

Wait, I have no CC debt and I don't have an RS...











Yet.

[greycrx87]

I was planning to pay it off within a year, but all the planning for ED over the past few months got me sidetracked...

[darkcloud]

Originally Posted by TK-421

That right there, I'd say, is one of the reasons you have an RS. People in general could live so much better (economically speaking) if they managed their money better.

I dont think so. There is no reason you can't control a CC and get an RS.

I control a CC(pay it off monthly), and I'm going to pay off my Mortgage in 3 years as well. Nowhere is using a CC exclusive to being in debt and having money issues. I could go on and on about the great position my wife and I are in and what we'll be able to do in our late 20's but I'm confident no one would care annnnnd we use a CC.

People who can't use a CC properly need to look into a mirror. It's not the CC that's screwing you. It's yourself.

My wife and I use our Amex's like we would our debit card. We know how much we have to spend and do so. But instead of coming out of our checking account daily(which is stupid when I can let it sit and accrue at least something in an interest account) it goes onto the Amex which I then pay off monthly. Now is that really that hard? No. It's the moron that goes out and buys a $5k TV that didn't have the money in the first place.

[texasmojo]

Do what just about everyone does. Don't pay it. Jk.

[Hawkeye]

^lol, sad but true.

I hate getting charged with non tax deductible interest so I pay off cc every month as well. I leave my student loans alone and pay the minimum cause the interest is 100% tax deductible so I technically get it back.

Same with some parts of mortgage payments.

[TK-421]

Originally Posted by darkcloud

I dont think so. There is no reason you can't control a CC and get an RS.

I control a CC(pay it off monthly), and I'm going to pay off my Mortgage in 3 years as well. Nowhere is using a CC exclusive to being in debt and having money issues. I could go on and on about the great position my wife and I are in and what we'll be able to do in our late 20's but I'm confident no one would care annnnnd we use a CC.

People who can't use a CC properly need to look into a mirror. It's not the CC that's screwing you. It's yourself.

My wife and I use our Amex's like we would our debit card. We know how much we have to spend and do so. But instead of coming out of our checking account daily(which is stupid when I can let it sit and accrue at least something in an interest account) it goes onto the Amex which I then pay off monthly. Now is that really that hard? No. It's the moron that goes out and buys a $5k TV that didn't have the money in the first place.

I wasn't saying it's the only reason, just that he probably wouldn't if he didn't manage his money well (like most people on these boards who buy new but he's just an easier to identify with example because of his car). And I agree with you 100% that if you buy what you can afford then you shouldn't have these problems. People are fucking themselves.

[dragon1761]

you cant really argue that. Why did you think all those companies have their own store credit card now, its to lure you to buy their stuff and say how you dont have to pay it for 12 months. They hope you either forget to pay it or in your situation not pay it in full.

[Watwood]

Originally Posted by greycrx87

I did not have a chance to speak with them today, but you are right the numbers dont add up considering my first payment being 500 bucks.

That would leave me with $3,800 and 11 months to go.

How did these fcks come up with $1,089

Have you never had an economics course?

What was your deferred interest rate? Let's say it was 25% compounded daily:

Your first month's interest would have been:
$4200*(1+0.25/365)^(365/12)-$4200 = $88.39

Compounded continuously it would have been:
$4200*e^(0.25/12) - $4200 = $88.42

You paid $500, so month 2:

$3700*all that crap above = $77.86 and 77.89 respectively.

See how it adds up?

Also, you could have just opened up a 0% credit card for XX months and transferred the balance before the initial 12 months was up.

[double_j]

Originally Posted by Watwood

Have you never had an economics course?

What was your deferred interest rate? Let's say it was 25% compounded daily:

Your first month's interest would have been:
$4200*(1+0.25/365)^(365/12)-$4200 = $88.39

Compounded continuously it would have been:
$4200*e^(0.25/12) - $4200 = $88.42

You paid $500, so month 2:

$3700*all that crap above = $77.86 and 77.89 respectively.

See how it adds up?

Also, you could have just opened up a 0% credit card for XX months and transferred the balance before the initial 12 months was up.

I did the math already. $1,089 is about equivalent to the 22.99% interest on the full $4,200 balance for 365 days. You'd have to read the fine print to see how much they've altered 'normal' terms, but the fact that they charge the interest on the total amount purchased regardless of any pay downs made along the way would imply a much higher effective interest rate than could be stated on the face of the agreement.

It might not be worth fighting, but still, this is one of the reasons that people have been pushing for more clarity and truth in lending & credit agreements. Sucks that the OP lost track of time but that's a prime example of borderline misleading wording.

[Watwood]

Originally Posted by radix

Your math is wrong.

Then enlighten me.

Nvm I think I screwed up putting it into month form.

Should be something like

(4200*(1+.25/365)^365-4200)*days in month/365

To the op My point was it adds up quick.

[greycrx87]

I'm buying everyone a case of beer



Lowes has a 30 policy period to take care of your leftover principle, they will remove the accured intrested if I pay before Oct 10 - going to the store right now...

[Freakazoid]

Originally Posted by greycrx87

I'm buying everyone a case of beer



Lowes has a 30 policy period to take care of your leftover principle, they will remove the accured intrested if I pay before Oct 10 - going to the store right now...

wow that's awesome, way to not bend over!

[radix]

Originally Posted by Watwood

Then enlighten me.

Nvm I think I screwed up putting it into month form.

Should be something like

(4200*(1+.25/365)^365-4200)*days in month/365

To the op My point was it adds up quick.

I was referring to the fact that if the interest on the entire principle is deferred until the end of the year, then the 500 dollar payment wouldn't have mattered, and your second iteration of interest calculation would have been wrong due to the fact that you factored in the 500 dollar payment. It all depends on how shady the lender was being. I deleted my previous post because I couldn't be sure of the lenders practice. As regards your previous calculation,

A = P( 1 + r / n)^nt

if t = 1/12 and n = 365, then nt = 30.4166

I think that's close enough. $88.39 was correct for the first month. My previous post was actually referring to the second months calculation. I'm not sure $77.86 is correct for the second month because the reduction in principal might not "count". Because I can't be sure of this as I don't know the fine print, I deleted my previous post.

[radix]

Hmmm... I might be right. 4200*(1+.2299/365)^365 = 5285. 5285 - 4200 = 1085, which is really close to 1089. If true, payments didn't even count. OP got screwed hard.