Personal Finance

5085 readers

19 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 2 years ago

MODERATORS

WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

On a credit card, for people struggling unable to pay it off in full every month, what's the difference between "annual percentage rate" and "monthly interest rate" for unpaid balance? (lemmy.world)

submitted 2 months ago by LemmyKnowsBest@lemmy.world to c/personalfinance@lemmy.ml

13 comments fedilink hide all child comments

For example some credit cards have ridiculous monthly interest like 29.9%

While offering a low 0.9% APR.

Please explain.

you are viewing a single comment's thread
view the rest of the comments

[–] CircuitGuy@lemmy.world 2 points 2 months ago

Wise? Or unwise?

I think it's unwise, even though your bank account probably pays more, so you could make money on the spread. It's a hassle, a distraction, and a small but non-zero risk a payment won't go through or something and you'll end up paying fees or having to spend time getting them reversed. The after-tax earnings on the spread would be under $100 if you borrowed $10k on this card. Focus on doing the stuff that allowed you have a paid-off Mercedes and no debt.