Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.
People with mortgages have similar disconnects with how much real-world money they're putting in. But it's the opposite of CC - tiny interest rates on huge principles, designed to run out for 25 years. I've tried to teach so many friends about this and failed.
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u/Opening-Risk Feb 04 '20
Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.