Financing Issue(s) getting financed?

[buckeyefarmer]

I use credit cards for most everything, haven't paid a finance charge in years.

 

[smstonypoint]

Steve, your own data posted earlier stated 43% pay finance charges. I would call those revolvers versus the 30% you quote in point 1.

The 43% applies to those who have credit cards. Only 70% have credit cards, so 0.48*0.70 *100% = 30% of the general population pays finance charges.

In point 2 the financial institutions benefit monetarily, the user does not and actually pays more for their product. Which was my original point in calling it a scam.

Any firm that provides goods and/or services benefits monetarily, provided that it is earning a profit. The benefits its customers receive from purchasing the goods/services have to equal or exceed the prices they pay; they wouldn't buy the goods/services otherwise. Similarly, households benefit monetarily in the form of wages, salaries, dividends, and interest when they provide labor and capital (factors of production) to businesses.

Millions of consumers, myself included, are willing to pay for convenience. If I forget to buy a loaf of bread when grocery shopping, I can drive one mile to a convenience store or 8 miles to WalMart or Food Lion. I willingly pay the higher price at the convenience store rather than drive the 8 miles. Plus, I don't have to dress up like I have to when I go to WalMart. Speaking of grocery shopping, millions of consumers, myself included, are willing to pay more for the convenience provided by the myriad "packaged" food products that are now available.

I totally agree with point 3. Which again was my original point. The use of cards financially benefits the institutions, not us the card holder.

See my response to #2.

Point 4 supports my scam claim.

How?

We'd never get the truth on this, but I'll stand by my hig percentile that 9 out of 10 readers/posters on this thread that use their credit card this month paid a finance charge last month.

I double down on by my call of BS.*

Steve

* I haven't taken the time to review all of the posts in this thread, but I don't recall anyone saying that he was a revolver.

 

[ovrszd]

I understand your point, and respect your concern for the general public. But... isn't it acceptable for me to profit from that service, while others pay the cost? Kinda like my ridiculous federal taxes supplementing those who pay no taxes??? I think I deserve something for my hard work to get where I am...1.5% cash back ain't that big a deal...

Totally acceptable. You are a minority in regards to card use.

If I pay any Federal tax it's a very small percentile. You can have ur "cash back and/or lower insurance premium".

 

[ovrszd]

The 43% applies to those who have credit cards. Only 70% have credit cards, so 0.48*0.70 *100% = 30% of the general population pays finance charges.



Any firm that provides goods and/or services benefits monetarily, provided that it is earning a profit. The benefits its customers receive from purchasing the goods/services have to equal or exceed the prices they pay; they wouldn't buy the goods/services otherwise. Similarly, households benefit monetarily in the form of wages, salaries, dividends, and interest when they provide labor and capital (factors of production) to businesses.

View attachment 515754

Millions of consumers, myself included, are willing to pay for convenience. If I forget to buy a loaf of bread when grocery shopping, I can drive one mile to a convenience store or 8 miles to WalMart or Food Lion. I willingly pay the higher price at the convenience store rather than drive the 8 miles. Plus, I don't have to dress up like I have to when I go to WalMart. Speaking of grocery shopping, millions of consumers, myself included, are willing to pay more for the convenience provided by the myriad "packaged" food products that are now available.




See my response to #2.



How?



I double down on by my call of BS.*

Steve

* I haven't taken the time to review all of the posts in this thread, but I don't recall anyone saying that he was a revolver.

I recall one revolver but won't call him out.

Good discussion Steve.

There have been a few posters in this thread as I do. They wisely realize that it's difficult or impossible to change the card/credit user's mind. Kinda like getting them to accept that "interest free" is "free".

 

[ovrszd]

I use credit cards for most everything, haven't paid a finance charge in years.

What has been your financial gain?

 

[buckeyefarmer]

What has been your financial gain?

Cashback.

 

[ovrszd]

Cashback.

Cool. Does it exceed the 1.5% increased cost of your consumption?

 

[buckeyefarmer]

Cool. Does it exceed the 1.5% increased cost of your consumption?

?????,

Things i buy cost the same, cash or credit.

 

[ovrszd]

?????,

Things i buy cost the same, cash or credit.

That is correct. 1.5% more to cover credit costs. Just curious if your cash back offsets that?

 

[CobyRupert]

What has been your financial gain?

There's also convenience and security.

If I want to make an impulse buy I can.
I don't have to carry $15,000 of cash around to carry the same purchasing power.

There's also warranty advantages.
And the ability to stop payment that cash doesn't offer.