Bank Interest charges

I have a $500 plus dept on my credit card. Each month I pay off at least 6 times the minimum. After the payment I get a new charge for interest usually about $90 for the month.

The banks charges me $90 for having a $500 plus debt, but if that same $500 is in my Saving account in one month earns my account about $1.25.

I want the same interest on my savings that the banks is charging my credit card. I mean it is only fair. They use my money I use theirs the interest should be the same.

a reply to: ChesterJohn

Who is the credit card and who is the bank you have your personal account with?

a reply to: ChesterJohn

start a bank of your own. I think you may need a few $ to get started, but when you are the lender, you make the rules for your money. When you aren't, you pay the man.

a reply to: ChesterJohn

I don't see how you can get $90 interest on a $500 credit card debt. Something is not right.

A $500 debt at 30% with a $50 monthly payment will only charge about $70 for the entire term.

a reply to: ChesterJohn

You are being screwed and not in a good way. Go find something to make some extra money and pay that thing off and never use it again. It's $500, you should be able to make that in a week or two delivering pizzas or cutting grass.

a reply to: ChesterJohn

I would also like to point out that credit cards are unsecured loans and are not always controlled by the bank.

You say your savings doesn't pay much interest.
Well no... But you can get a car loan or mortgage under three percent right now.

So the bank takes in about three percent to use for paying it's employees, maintenance of it's buildings, and all the other costs for doing business.

originally posted by: ChesterJohn
I want the same interest on my savings that the banks is charging my credit card. I mean it is only fair.

Are you new on the planet? LOL

a reply to: ChesterJohn

You sure you have a credit card and not a payday loan?

I don't even think a credit card can legally charge you that much interest on a $500 balance.

Credit cards are UNSECURED which means if you don't pay the bank back, they are SOL. They can't repossess your flat screen TV, Gucci bag or whatever nonsense you ran up charges for. This is why credit card rates are higher than rates on secured loans like a car loan or a mortgage. With a secured loan, the bank can recoup some of their loss if you default.

Banks make money by paying depositors say 1% while they loan money out at much higher rates. They have to run a business on that spread in interest rates.

a reply to: ChesterJohn

Word to the wise, debt is a never ending spiral and it generally only moves one way.

If you can't afford something then save for it. If you need credit cards just to pay for rent and food then downgrade your property.

Nothing ever good comes from borrowing at high interest rates.

I have never heard of a credit cart where there is interest like in the OP.

a reply to: MRinder

I am disabled. I Was forced into retirement.