Comments on: Why Do You Think We Pay High Interest Rates?

By: Patrenia

Patrenia — Sat, 23 Jan 2010 04:05:21 +0000

LOL, I would have to agree. Now that I think about it, a great example of that would be payday loans. Their profits are HUGE and they are popping up all over the place. Hmmm…I may need to reconsider my profession (just kidding). Thanks so much for the comment:-).

By: 7 Reasons Why We Pay High Interest Rates — Personal Finance Notebook

7 Reasons Why We Pay High Interest Rates — Personal Finance Notebook — Sat, 23 Jan 2010 03:15:18 +0000

[...] reasons why our cost of doing business becomes expensive. Last week, I asked the question – “Why Do You Think We Pay High Interest?” I’m happy to share the great responses I received along with my elaborations and additional [...]

By: FinanciallySmart

FinanciallySmart — Sat, 23 Jan 2010 02:05:41 +0000

I would say that we pay interest rate because it is a profit making opportunity for the company lol. Those answers that were given are very good especially the one from Susan Liddy very informative indeed.

By: Susan Liddy

Susan Liddy — Thu, 21 Jan 2010 21:20:44 +0000

I was right?!?!?!
Oh, how I love being right.

By: Patrenia

Patrenia — Wed, 20 Jan 2010 04:03:49 +0000

Great “guess” Susan:-). This one is often overlooked by consumers, but it is a major factor when determining approval for credit. Thanks for the comment!

By: Susan Liddy

Susan Liddy — Tue, 19 Jan 2010 22:09:03 +0000

Okay, my guess is that a higher interest rate may be affected by how much credit we have available and on hand, and how often we use it.
So, if I have 5 credit cards with high limits, that I use frequently, even though I pay the bills on time, I may receive higher interest rate on a newer credit line because of the risk that I could easily go into debt and default on my payments… ???

By: Patrenia

Patrenia — Mon, 18 Jan 2010 20:40:12 +0000

I am loving all of the ideas presented so far. Great conversation .

By: Patrenia

Patrenia — Mon, 18 Jan 2010 20:39:16 +0000

Love it! This is definitely a solution. We really don’t have to accept rates at all. If we just simply use – cash. Great point!

By: Patrenia

Patrenia — Mon, 18 Jan 2010 20:37:33 +0000

Great point! Thanks Lakita.

By: Eric | Eden Journal

Eric | Eden Journal — Mon, 18 Jan 2010 19:35:15 +0000

I’m taking a slightly different view of your question, but it’s what popped into my head when I saw the question. We pay high interest rates because we cannot wait. We must have everything and we must have it now. The alternative to a high interest rate is no interest rate at all, by paying cash for our transactions. I’m not sure that’s the direction you were headed with the question, but I think it’s the real root of the situation.