Comments on: 7 Reasons Why We Pay High Interest Rates

By: Patrenia

Patrenia — Thu, 25 Feb 2010 16:16:56 +0000

This should definitely be the first rule of negotiation…”Never let them know how desperate you are!” You are asking to be charged a high rate. Thanks Joe!

By: joe

joe — Thu, 25 Feb 2010 02:27:30 +0000

Desperate purchases also gets us in trouble. When the lender know that you must have what you are looking for, they have no motivation to give you lower rates.
Do the homework, and compare rates with other lenders.

By: Patrenia

Patrenia — Tue, 09 Feb 2010 02:59:38 +0000

Yep, very true. We can do most everything right, but if we don’t have that emergency fund to handle the emergencies then we are left to rely on the old faithful loan. You guys are doing the right thing by paying it off early. Don’t feel bad my husband and I have had to do the same. I wish you guys the best of luck!

By: oregonsun

oregonsun — Tue, 09 Feb 2010 01:55:20 +0000

we just had this happen to us…no cc debt, car debt, just our home…our furnace gave out and had to get a loan…8.75%…ugh. I am still crying…we are paying double payments each month. Very frustrating, we have a great credit score, low debt to income ratio and yet that was the very best rate we could get. Sad but true.

By: Patrenia

Patrenia — Sat, 06 Feb 2010 01:04:47 +0000

LOL! Of course they love us. The more appealing their offers the more we want to spend. Thanks Ken for adding to the conversation.

By: Money Making Sense » Blog Archive » Weekend Linkage

Money Making Sense » Blog Archive » Weekend Linkage — Fri, 05 Feb 2010 19:18:52 +0000

[...] Finance Notebook shares 7 reasons why we pay high interest [...]

By: Ken

Ken — Thu, 04 Feb 2010 11:21:32 +0000

“we cannot wait” is a huge reason. The ‘gotta have it now’ mentality of consumers has folks signing up for credit (with interest) at alarming rates. Saving up for purchases is almost unheard of these days…the banks love us for this.
Good post.

By: Patrenia

Patrenia — Wed, 03 Feb 2010 01:32:35 +0000

I agree with you. What’s that saying? You play with fire, you get burned. It’s all tied into the calculation of their own risk. Credit can be helpful, BUT it has to be used wisely.

By: Patrenia

Patrenia — Wed, 03 Feb 2010 01:14:21 +0000

Hi Steven,

I think you used a few key words here…”The more the people save…” That would be the problem because many people are not smart savers. It is definitely a great idea. Thanks for the comment!

By: Watch Entourage

Watch Entourage — Mon, 01 Feb 2010 18:27:22 +0000

But those credit card guys are mean. If someone is late, they should not just increase the rate because they think the person might default. Don’t they think that, them increasing the rate increases the chances of someone to default? Well, maybe they make more money, that is why they still increase the rate.

Mike