That’s something that tends to accumulate over time too, particularly if you pay by direct debit: journals you don’t really read anymore, associations that mere sloth keeps you from resigning your membership, Internet services that you don’t use anymore, etc. - I review them every few years and usually save a tidy sum in the future.
Keeping a partner that doesn’t work or help out in any way other then to dust around. Pets can also fall into this category. My dog is about 350 a year for shots and 200 a year in food. They both did about the same amount around the house.
Dog=46 bucks a month
High Maintenance, Non Working, Partner= 600 a month
Hookers and blow.
I’m trying to get my head around this ( I have never used the option).
Are you saying that if I buy something for $10,000 and at the end of 12 months I have only paid off $8,000 I then get charged full interest on the $10,000 for the previous 12 months?
Only 600? I gotta get me one of those fashion models!
Yes.
You can pay the debt off at any time before the due date without paying interest. You don’t have to make monthy or partial payments either; you can just ignore the debt until the due date. If you pay it off on the due date, you pay all the interest as well. I think that after the due date, the interest accumulates like any other loan. And it’s usually at a pretty high rate, too.
I once bought a computer this way. Paid it off in one lump sum at the store the day before it was due.
Yes. It’s buried in the fine print, but the terms are typically that if and only if you pay the full amount off in 12 months, you pay no interest. Otherwise, the interest accrues behind the scenes at a crazy high rate (e.g. 30%) – if you have any balance at the end of 12 months, all that interest gets tacked onto your total.
It’s insane, and prays on people’s natural assumption that the interest only starts accruing on the balance left at the end of the 12 months.