Buy Now, Pay Later

"In credit wonderland ... consumers are hardly told about the actual annual interest cost of debt," the author Hillel Black said in a book published in 1961, "Buy now, Postpay "I wrote. The lender uses several different methods of calculating interest rates. Some of them obscure excessive interest rates. Some people cite monthly interests, others use annual rates. Congressman is involved, but it is not so early. In 1968, the "Lender Truth Act" which is part of the "Consumer Credit Protection Act" standardized the calculation method of annual rate (APR). But in a 1971 Consumer Problem Journal article, Congress passed the law eight years after studying this problem.

The biggest appearance of a credit card is the traditional way of thinking "buy now and pay later". But with the store's credit card, Shantou became more attractive: "Buy now, the discount is fairly large, and the payment will be done later." For most consumers, the gimmick is effective, retailers receive incentives from irresponsible cardholders, and it is not said that their interest rates may be up to 29% APR (annual) Hmm. In theory, if a customer purchases $ 1,200 with an annual interest rate of 29% and a monthly payment of $ 50 using a store credit card, the payment interest will be 616.56 dollars in addition to the credit card payment. Normally customers will ultimately pay a total of $ 1,816.56.

This makes me most terrified - Banks save money and charge a relatively high fee regardless of credit score. This reminds me of the 2008 financial crisis and all ninja credits and "Buy Now - Pay Later". This slogan almost destroyed the US in 2008, but it will be now. It can also be regarded as an indicator of a financial bubble. In Elena Chirkova's "Financial Bubble Analysis" (Great Book), Elena states that the signs of this bubble are inappropriate wealth distribution. Home, this is a sign of the growth of the bubble. What you are seeing - Unemployed people drive a new sports car and homeless people have an iphone. I think the situation here is very obvious. Finally, we find that the goods of many people are affordable and they will not be able to pay for them in the future.