When did you - or a friend - last flush $50.00 down the toilet?
Here in Canada, mainline credit cards ordinarily charge 15 - 18% (mine, a no-annual-fee one, charges 18.5% on unpaid balances).
I haven't heard U.S. participants refer much to the interest rates on store-issued credit cards.
Cards issued by local stores, however, ordinarily charge 25 - 28% annual rate.
Remember the "Save Karyn" website that was discussed here a few months ago?
Karyn owed something over $20,000. at the time, if you recall. If the interest rate were 15% on her mainline credit card, her annual interest cost would be about $3,000.
If she carried the balance on store cards, at, say, 25%, her annual cost would be about $5,000.
I checked about the interest rate that my bank'd charge me on my fully secured line of credit at that time - 4%.
Carrying $20,000. on my line of credit, at 4%, would cost me $800. annually.
She might have been paying 6 to 7 times the rate that I must pay, on at least part of her debt.
Quite a difference - something near $50. per week down the tubes, isn't it?
More recently, 4.25%. I have owed nothing on it for some time (and heard nothing about a maintenance fee).
Actually, my line was only good for something over $10,000.
And later dropped to between $7,000. and $8,000., when the stock market values dropped into the tank.
Which is precisely why I never want to run a loan on my line of credit up near its maximum value.
Hope you won't get "flushed" while learning more about shrewd management of assets.
In weather like we have these days, it's just the cold wind on the cheeks that causes "flushing".
Know anybody full of hot air? We could sure use some - it's near zero degrees tonight.
jes ole joyful