Another Best Buy Complain, Beware

[Ryan L]

Gotta be less than that. One extra prinicipal payment a year will take a 30 year to 22-23 year to pay off. I would think paying bi-weekly would result in closer to a 15 year pay off.

*Edit* Or are you saying to split your monthy payment to half of your payment on the 1st and the other half on the 15th?

Should have been more clear. Split your payment, tell your bank to apply as much towards principal as possible and without increasing your total monthly payment you can only pay for around 20 years instead of 30, depending on your interest rate.

Interesting, never heard of doing it this way. I am assuming this is because there are 52 weeks in a year, and you would make 26 biweekly payments, so it would be the same as paying 13 monhts worth of payments in a 12 month period. You would be making an extra payment over the course of the year. So unless I am missing something, it would be the same as making an extra payment wouldnt it?

 

[traylorc]

Like most forms of financial dealings, those who know and understand the system come out ahead, and those who fail to understand it get stuck paying the BILLS that help keep the system afloat for those of us smart enough to understand how to use credit when needed for our own personal gain--and who understand credit traps and sucker deals,and avoid them. The real problem here is not with Best Buy--the problem rests between the ears of a buyer who assumed something that was incorrect. JUst as there is a camera manual RTFM comment, there is a RTFP for entering in to contractual agreements--Read The Fine Print.

Sorry Derrel but you post just makes too much sense....

It's easier not to read the fine print, create a thread to rant about getting screwed over, and then blame a big box retailer of scamming you even though the terms of the promotion were disclosed on a monthly basis.

You see, we have become a country of "blamers". Nobody does anything wrong, nobody accepts any responsibility, it's always somebody else's fault, and somebody is always the victim.

 

[vtf]

Gotta be less than that. One extra prinicipal payment a year will take a 30 year to 22-23 year to pay off. I would think paying bi-weekly would result in closer to a 15 year pay off.

*Edit* Or are you saying to split your monthy payment to half of your payment on the 1st and the other half on the 15th?

Should have been more clear. Split your payment, tell your bank to apply as much towards principal as possible and without increasing your total monthly payment you can only pay for around 20 years instead of 30, depending on your interest rate.

Interesting, never heard of doing it this way. I am assuming this is because there are 52 weeks in a year, and you would make 26 biweekly payments, so it would be the same as paying 13 monhts worth of payments in a 12 month period. You would be making an extra payment over the course of the year. So unless I am missing something, it would be the same as making an extra payment wouldnt it?

Yes but your bank must allow this to occur as that extra payment goes to principle and not interest.

 

[Ryan L]

Most will now days, I havent seen any prepayment penalties on mortgages in a while.

 

[flyin-lowe]

Like most forms of financial dealings, those who know and understand the system come out ahead, and those who fail to understand it get stuck paying the BILLS that help keep the system afloat for those of us smart enough to understand how to use credit when needed for our own personal gain--and who understand credit traps and sucker deals,and avoid them. The real problem here is not with Best Buy--the problem rests between the ears of a buyer who assumed something that was incorrect. JUst as there is a camera manual RTFM comment, there is a RTFP for entering in to contractual agreements--Read The Fine Print.

Sorry Derrel but you post just makes too much sense....

It's easier not to read the fine print, create a thread to rant about getting screwed over, and then blame a big box retailer of scamming you even though the terms of the promotion were disclosed on a monthly basis.

You see, we have become a country of "blamers". Nobody does anything wrong, nobody accepts any responsibility, it's always somebody else's fault, and somebody is always the victim.

Actually it is not spelled out every month. Every other statement I have does not have a "warning" indicating the final payment is due. Also this is the oldest promotion on this card so for the past year every payment I have made has gone 100% toward this balance. Now that it is time to pay it off it no longer goes toward my minimum due. The last month that my promotion was due it said in top dead center at the top of the statement. To avoid paying accrued interest you must pay X amount of dollars this month. I paid a little more then X. Now if they don't want to apply that toward my minimum payments I can see them charging me a late fee for not meeting my monthly minimum. However since it says if I pay this amount I won't be charged the interest I didn't feel I should have been charged. This must happen all the time because they did not even try to argue with me when I called them to ask them why the interest was charged to my account. The only time I use this card is if I have to make a large purchase and I will take advantage of there 0% interest. I have never paid them a dime of interest since I have had the card.
The whole point of me making this thread was to let others know, just in case I am not the only person who doesn't read every square inch of a credit card statement.

 

[usayit]

So there is more than just one purchase on this deferred interest, rotating balance, screw em up the rear end credit card? Dude stop just stop.

C A S H


I have not seen one person ever come out ahead in the long term stretching their consumer buying ability... which is the sole purpose of credit. Even as a country... it screwed us as a country.


PS> If you have any outstanding rotating debt with out a term, that extra payment or money shoukd gonthere before mortgage. Interest paid to Mortgage and home equity loans are tax deductible.

 

[traylorc]

Like most forms of financial dealings, those who know and understand the system come out ahead, and those who fail to understand it get stuck paying the BILLS that help keep the system afloat for those of us smart enough to understand how to use credit when needed for our own personal gain--and who understand credit traps and sucker deals,and avoid them. The real problem here is not with Best Buy--the problem rests between the ears of a buyer who assumed something that was incorrect. JUst as there is a camera manual RTFM comment, there is a RTFP for entering in to contractual agreements--Read The Fine Print.

Sorry Derrel but you post just makes too much sense....

It's easier not to read the fine print, create a thread to rant about getting screwed over, and then blame a big box retailer of scamming you even though the terms of the promotion were disclosed on a monthly basis.

You see, we have become a country of "blamers". Nobody does anything wrong, nobody accepts any responsibility, it's always somebody else's fault, and somebody is always the victim.

Actually it is not spelled out every month. Every other statement I have does not have a "warning" indicating the final payment is due. Also this is the oldest promotion on this card so for the past year every payment I have made has gone 100% toward this balance. Now that it is time to pay it off it no longer goes toward my minimum due. The last month that my promotion was due it said in top dead center at the top of the statement. To avoid paying accrued interest you must pay X amount of dollars this month. I paid a little more then X. Now if they don't want to apply that toward my minimum payments I can see them charging me a late fee for not meeting my monthly minimum. However since it says if I pay this amount I won't be charged the interest I didn't feel I should have been charged. This must happen all the time because they did not even try to argue with me when I called them to ask them why the interest was charged to my account. The only time I use this card is if I have to make a large purchase and I will take advantage of there 0% interest. I have never paid them a dime of interest since I have had the card.
The whole point of me making this thread was to let others know, just in case I am not the only person who doesn't read every square inch of a credit card statement.

If you don't read "every square inch of a credit card statement", then who is at fault here? Yours or Best Buy??

Maybe I'm wrong, but I don't get the feeling the primary motivation here is to help other people. The primary motivation for this thread per your own words was to talk about Best Buys attempt to "blatantly scam people".

Now that some folks have indicated that this whole problem was the byproduct of you not reading your credit card statement, or understanding the interest free promotion, now the point of the thread is to let others know what Best Buy is doing to them.

I think your experience can be a valuable lesson to others to read the fine print. IMHO the whole point of this thread is to blame Best Buy because they are out there scamming folks.

If you plan on securing a multi year, interest free loan...then you better read ALL the details. Best Buy and other retailers are not offering these promotions because they are altruistic. Retailers are offering these programs because they know some customers don't read every square inch of their credit card statement and they will profit from this fact.

Let's just agree to disagree. I won't disrupt this thread any longer.

 

[Ryan L]

Chances are if I can't afford it and pay in cash, I don't really need it. With the exception of vehicles or a home....that would be nice too though.