False sincerity

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Just got my MasterCard statement.

It is a little bit higher than usual because it contains some additional expenses related to Christmas.

Anyhow, I have a look at the minimum payment due and see that it is $0.00, which is odd, since it should be around $43.00.

Look at the last page and see that MasterCard is trying to be nice to me:

Need a bit of breathing space? Go ahead and skip this month's President's Choice Financial MasterCard payment! The usual interest will apply, but your account remains in good standing. So don't bother to pay this statement, and breathe a little easier this month!

How nice and thoughtful of them! I guess they are not the bloodsucking money vampires I thought they were.

I wonder how many people are going to be fooled by this deceptive gesture of kindness? Sure, maybe, in my case, it is only $43, but it's peanuts to MasterCard which is charging me 18.97% per annum on outstanding balances. They stand to make at least an extra $22.55 by my not paying.

Don't get me wrong, I would love to be able to skip paying the balance, but I can't because I know the interest paid to MasterCard is $22.55 out of my pocket. That is $22.55 less for me to spend somewhere else - some fruits, maybe a book, some knick-knacks from the dollar store for my kids, half a tank of gas.

Maybe it doesn't seem like much. Maybe I am just a penny pinching miser. On the other hand, handing it over to MasterCard would give me less pleasure than spending it on something more personal.

I use the MasterCard because I get reward points with it and extended warranty on purchases. I do not use it to give them money.

So, if you have a credit card or 2 or 10 and you carry a balance on them, I want you to think of this: add up all the interest you pay each month. Now ask yourself, are you tight on money? Could you make do with a little bit extra each month? Of course you could. How much are you paying in interest? Would that much extra cash be useful to you? Or do you prefer spend your money by giving Visa or MasterCard $50 or $100 or $200 each and every month. Or would you rather have that money to spend on yourself?

Most people are richer than they think, they just opt to give their money away to the credit card companies, loan companies, etc.

Image nabbed from here.

Now that the thrill of the massacre is over
Isn't it sweet when she sucks on your veins
Babylon by the Tea Party

Comments

Anonymous said…
I was fooled once too; its their marketing strategy, I guess. My creditcard charge was like $56something for that month and mentioned in their bill: minimum payment $50. So thinking that I could bring forward my balance till next month, what is $6dollars anyway.
My next bill was charged with interest on my previous expenditure i.e. $56+interest; ridiculous, I called for an explanation and the reason the bank gave was, as long as my bill's not fully cleared by due date, interest will be charged in total, accordingly.
My $6 multiplied 5x in my credit account! :(
January 23, 2006 11:37 PM
Richard said…
Yep, that is correct. The fine print states that you will be charged interest on the full original balance, even if you pay the majority of it off.

They caught me that way once too ... many years ago when I first got my credit card.
January 24, 2006 12:16 AM
buzybee said…
Hmmn... I never have much problem with the mastercard or the visa... cos I always pay in full, never believe in paying just the "minimum" amount. So they don't make a single cent from me.

But there were a few times I was late in my payment due to oversight and was charged for interest and late payment. However, each time they waived those charges for me when I called them. :)
January 24, 2006 10:52 AM
Richard said…
bee: hmmm ... I never thought to call them if I was charged interest because I was late. Yes, I always pay mine off in full every month too.
January 25, 2006 9:53 AM
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