36% Interest Rate
My son-in-law received a solicitation this week from a local finance company.
At the bottom of a one-sheet mailer, there is a check made out to him for $3,100. He can cash it.
On the back side of the mailer, he read:
Annual percentage rate: 35.99%
Finance charge: $2,011.64
Total payments: $5,111.64
This solicitation is working. There are people who are taking the bait.
There are people so ignorant of the cost of money that they will cash these checks.
Every tax-funded high school should have a mandatory course on personal finance like this one:
Make sure your children or grandchildren are taught to recognize a trap like this one.