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Credit Offers you might want to avoid

Posted Nov 17 2008 11:51pm

Most credit offers are designed to take advantage of the weaknesses of Adults with ADD. Here are some examples of credit offers adults with ADD might want to avoid :

Charging items on Credit Cards to take advantage of bonus points or miles. While this is a good idea if you consistently pay your bill in full every month, it can have bad consequences it you do not pay your bill in full or if your lucky to remember to pay minimum ( sound like anyone). On my credit card I get a 1% cash bonus, if you credit card has an interest rate of 12%, you get charged 1% a month on any outstanding balance. If you don't pay down your balance after 1 month you are losing money on the transaction.

Opening department store credit accounts in order to take advantage of a special discount. This is bad for three reasons. Department store accounts tend to have a higher interest rate than regular cards. Getting department store accounts increases the number of bills that you are responsible for on a monthly basis. Having a department store card can lead to more impulsive purchases.

Taking advantage of zero interest offers. This can save you money if you are able to pay off the loan within the zero interest time period, but if you do not pay off the loan within the time period the company will charge you all of the interest retroactively at a really high interest rate. What makes these offers more confusing is that if you pay the minimum payment, you will not pay off your loan within the zero interest time period. If you bought $1,200 worth of furniture that had to be paid off within a year you would need to pay $100 a month to pay it of. If you paid a minimum payment of $40.00 a month at 20 % interest (because you wouldn't pay off the bill within the time period) tt would take three and half years to pay off and cost $477.40 in interest.

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