Just a warning about Sweetwater Card 18 month zero interest

[kitekrazy]

(1) the promotional purchase amount(s) is paid in full by the Promotional Expiration Date and
(2) each Minimum Monthly Payment is paid by the Payment Due Date.

Basically I spent $150 which by the monthly payments will be done in 6 months because of a mandatory $25 monthly payment. Where's the 18 months part?


They are financed thru GE Capital which I'm not fond of.

[beatmunga]

Intit

[gjm]

GE just sent me a letter saying that I have been pre approved to raise my limit another $1000.00. They will happily lend me 7k. I think it works out that if you have not paid your debt in full by the time the interest free period finishes, then you will pay 28% interest

[beatmunga]

Absolutely.

[Linear Phase]

yeah.. lol... you can say this about almost every credit card. And then you can go on to say the same thing almost about, "cell phone contracts, airline tickets, car loans, and even software." its never the price you see, they always get to change it.

Look at how spectrasonics has treated their trilogy and atmosphere customers, "no upgrade, but crossgrade," which is really rough imo. Also, I have at AT & T, for my cell phone... the day I bought it, I had the 2 gig data plan, than I upped my plan to 4 gigs, cause I wanted tethering, than I decided.. "oops too expensive." I wanted to go back to the 2 gig plan, but they said the best I could do was 3 gigs.. They said, they only offered the 2 gig, in store to new customers... so I'm fucked, till my contract expires....

Also.. Car loans! In 2007 I bought a brand new Ford Fusion with my perfect credit. Than, when the economy fell apart, I lost the most steady job I ever had.. The car got reposessed but here's the thing... I got shafted on that loan. It was my first brand new car, I had a near $600 a month payment.. I shouldn't have, but all the addon's at the dealership, and I was unaware, and they really took me for a ride! no pun, lol

As far as airline tickets go.. Its just the beginning now. LMFAO.. I remember the first time I ever went to Europe alone... Way back in my teens in the mid 90s... OK.. It was a $300 plane ticket, and I don't recall baggage fees, or food fees, or headphone fees, or drink fees, and whatever other fees they now have.

The last time I flew, last summer, back from Washington state.. I had to pay for my bags, my dinner, my headset, the coca colas.. Its insane.

[beats me]

You got a credit card to buy something for $150?

[Blue Monster 65]

(1) the promotional purchase amount(s) is paid in full by the Promotional Expiration Date and
(2) each Minimum Monthly Payment is paid by the Payment Due Date.

Basically I spent $150 which by the monthly payments will be done in 6 months because of a mandatory $25 monthly payment. Where's the 18 months part?

They are financed thru GE Capital which I'm not fond of.

Without trying to seem like I'm trolling you, may I ask what's the surprise here? You didn't spend enough to spread your payments out over 18 months. During the six months you ARE making payments, you're not being charged interest. If you had spent enough for an 18 month contract ($450), your minimum payment of $25 would be interest free. It seems to me that it worked out pretty good for you: you only paid $150 for the item, when you could have easily paid $192? (total amount x 28%).

Before you - or anyone - signs any contract, you need to be fully aware of what it says, what the details are, etc. Yes, I know they're written in legalese, but if you don't understand, you should ask. If that doesn't help, don't sign 'til you get a complete explanation, even if it means you don't get something you want.

We used to offer a GE card at my music store. My employees were told to offer the card to people, but to make sure they absolutely understood what it was and what the payments were going to be, etc. If they didn't feel comfortable offering it to someone, they shouldn't.

Money is never free: any loan or contract for service comes with conditions that make it more viable for the lender than the receiver. If you're not willing to pay the fees - or don't understand them - DON'T (by all means) take the deal.

I really wish they'd have mandatory classes in schools about basic finance (handling your money), but I don't see it happening, nor do I see most kids paying attention if they were forced to take them.

Sorry again if this seems like I'm trolling (I don't post here much), but this topic is something I've been discussing with my oldest as he prepares to buy his first big purchase without Mom & Dad financing him. Suffice it to say, he's thinking long and hard about it and may put it off 'til the end of summer as he thinks he can save more money. Sounds like a good idea to me!

[doghouse]

I really wish they'd have mandatory classes in schools about basic finance (handling your money), but I don't see it happening, nor do I see most kids paying attention if they were forced to take them.

Thank squeezed education budgets (at least in the USA).

When I was in elementary school, every class visited a downtown bank where each student opened a savings account. Every week we brought a dime to class and the money was sent to the bank to be deposited. After a few months, we were guided through the math to calculate the interest using our own accounts as an example. We also had a piano in every classroom and had weekly visits from a music teacher where we were taught how to read music.

Those days are long, long gone. My own children had no such opportunities in school.

[beats me]

It’s not in the western world's corporate and bank run government’s best interest for the general public to know how money lending really works and all kids see is people “owning” stuff they couldn’t pay for in full with cash.

I have a savings account I put money into weekly and the interest rate is laughable. Even the most generous interest rates on savings accounts are laughable when you compare it to the interest banks charge you for loans and credit cards. My savings account is little more than a holding pen for money I may need for an emergency or big purchase that makes it less tempting to use if it was all sitting in my checking. Thinking I’m going to make any kind of dent in retirement funds off interest in a savings account is idiocy.

[supamonsta]

Even the most generous interest rates on savings accounts are laughable when you compare it to the interest banks charge you for loans and credit cards.

I never thought about it that way, but it's absolutely right and stunning. Thieves, very rich thieves is what they are...

[Blue Monster 65]

Thank squeezed education budgets (at least in the USA).

When I was in elementary school, every class visited a downtown bank where each student opened a savings account. Every week we brought a dime to class and the money was sent to the bank to be deposited. After a few months, we were guided through the math to calculate the interest using our own accounts as an example. We also had a piano in every classroom and had weekly visits from a music teacher where we were taught how to read music.

Those days are long, long gone. My own children had no such opportunities in school.

Don't have to tell me about that - my wife is a teacher! You'd be amazed (or disappointed) at the amount we spend each year to fully outfit her room and she's in a good, supportive district. Every year more and more is cut to deal with more and more mounting expenses and those aren't necessarily salaries.

It sounds like you and I are roughly of the same generation - maybe. Back when I was in school (running from the dinosaurs, uphill, both ways), we didn't have the sort of class you had, but we did have an elective that taught you how to use a checkbook, make a household budget, etc. More kids should have taken it than did - I know it helped a few kids that didn't get that sort of info at home. At my kids' school, one of the local credit unions runs a savings program for students, but the only kids who really learn more than it's good to save are the ones who volunteer in the beginning of the year to work it. If you don't, you don't get to see what goes on behind the scenes, calculate interest, etc. Suffice it to say, my kids have no choice but to participate in the program on both sides.

Hate to tell you this, BeatsMe, but it's not just the western world's banking system and it's not necessarily a bad thing, unless it's taken advantage of (I'm not going to argue that nor political philosophy here). The difference between the interest you pay and the interest you make pays a lot of salaries, etc. - not just bonuses for fat cat executives. Can't stand your bank? Use a credit union! Seriously - I've used CUs for almost all my financial dealings for over 20 years now, as I just like dealing with them better (much smaller, plus personal service).

[H20nly]

^ agreed on Credit Unions, but beatsme seems to be right. "they" don't seem to want us/our kids to know about this stuff. one could argue that it's the parents responsibility to teach their children how to balance their bank account or do taxes, but what if there was some generational gap (or hardship) that breaks the cycle? what if the parent was never taught?

oddly you have to pass history classes that will not help with your career pretty much... at all (unless you plan on teaching). that subject is interesting and all but hardly practical. out of EVERY class that i took in high school... with the exception of English (or insert native tongue) only typing has proven to be something that i use almost every single day, saves me time AND is present in every job scenario that doesn't involve physical labor. oddly enough, typing was a class that i only had to take once for one semester (half a year of school)... AND it was an elective. personal finance/taxes COULD work the same way... if it was offered.

[beats me]

Not even a credit union is going to set you up for retirement strictly through the use of a savings account unless you make a boatload of money and are also disciplined at spending.

A lot of companies now also don’t offer a pension that alone would give you a comfortable retirement. So as much as everybody hates the stock market right now, investing is about the only way to secure your future whether it’s through a 401k or personal investments. It’s legalized gambling for everybody with higher stakes.

[kitekrazy]

You got a credit card to buy something for $150?

No, I've had the Sweetwater card for some time. I occasionally use cards because if you don't they get cancelled and that reduces your credit rating.

[kitekrazy]

(1) the promotional purchase amount(s) is paid in full by the Promotional Expiration Date and
(2) each Minimum Monthly Payment is paid by the Payment Due Date.

Basically I spent $150 which by the monthly payments will be done in 6 months because of a mandatory $25 monthly payment. Where's the 18 months part?

They are financed thru GE Capital which I'm not fond of.

Without trying to seem like I'm trolling you, may I ask what's the surprise here? You didn't spend enough to spread your payments out over 18 months. During the six months you ARE making payments, you're not being charged interest. If you had spent enough for an 18 month contract ($450), your minimum payment of $25 would be interest free. It seems to me that it worked out pretty good for you: you only paid $150 for the item, when you could have easily paid $192? (total amount x 28%).

Before you - or anyone - signs any contract, you need to be fully aware of what it says, what the details are, etc. Yes, I know they're written in legalese, but if you don't understand, you should ask. If that doesn't help, don't sign 'til you get a complete explanation, even if it means you don't get something you want.

We used to offer a GE card at my music store. My employees were told to offer the card to people, but to make sure they absolutely understood what it was and what the payments were going to be, etc. If they didn't feel comfortable offering it to someone, they shouldn't.

Money is never free: any loan or contract for service comes with conditions that make it more viable for the lender than the receiver. If you're not willing to pay the fees - or don't understand them - DON'T (by all means) take the deal.

I really wish they'd have mandatory classes in schools about basic finance (handling your money), but I don't see it happening, nor do I see most kids paying attention if they were forced to take them.

Sorry again if this seems like I'm trolling (I don't post here much), but this topic is something I've been discussing with my oldest as he prepares to buy his first big purchase without Mom & Dad financing him. Suffice it to say, he's thinking long and hard about it and may put it off 'til the end of summer as he thinks he can save more money. Sounds like a good idea to me!

You rarely ever see in an agreement what the payments are when it comes to cards like this until after you have come to an agreement. I was surprised that the payments were $25 monthly on $150. Of course on a Discover card you would pay $40.

Oh well, another lesson learned.