"Sub"-Prime?

By Woody Roe Alspaugh

"NEW" Story

This story I wrote before the---- hit the fan. Woody.

"Tis the Season" Perhaps you have seen the add(s), "Don't pay a dime until 09." Well, let's take a look at the fine print. It says don't pay, but does not say "don't owe". Okay, say you purchase &1,000 worth of merchandise at 18% interest. The interest is being calculated on a daily basis, compounding and accumulating until paid in full. So, at the end of the first month, you will owe $1,015. In just one year, your balance will be over $1, 0180. (Being 99, I'm a little rusty on my math). Now, when you start the payments, the interest rate will still be going on. So, the longer that it takes you to pay, the more that you will owe. In other words, you will be paying interest on the interest. (Just like our National Debt., except the Government money, in the first place, never existed.) "Tis the Season" (Part Two) "Credit Cards": Most everyone has a credit card, or will soon have one, especially since the major stores are "baiting" the trap. For a sparsely piece of meet, they are luring people into the snare whith an offer of 10% off on your first day of purchases. Once you sign on the line, the snare tightens, sure, you saved a lot of money, or did you. Because of the sales, along whith the discount, you buy more, plus, so when the bill comes, you will owe more. After you get on their list, they will send you a check for 1,000 plus bank checks for you to write and cash at your conveniences whith a low rate of, say, 3%. Okay, that's not bad and you can make the low monthly payments whith ease. But wait, you forgot about the fine print. If you happened to be late, they say that you must mail a week ahead to make sure that they receive it on time, notwithstanding that you have no knowledge of when they deposit your check, or you miss a payment, your interest rate goes up dramatically to say 12%. Then, if it happens again, the rate goes up again to maybe 21%. Now all this time, this will add to your total bill and increase you debt and payment so the snare snaps shut and you are caught. Plus, since your payment is still respectively low, your children will inherit your debt. There is one more thing. If your card has a "grace" period, that is if you pay the amount in a certain time, there will be no interest, be advised that if you have a large balance and think that if you pay the bulk of the bill to reduce the amount of interest, the J.E.W.s have another trick. You will be charged interest on the total amount even though you have paid most of the balance. Learn more about this author, Woody Alspaugh.