19.8% is very high for an interest rate. i'd better resort to low interest credit cards rather than get in trouble of paying off any bills due every month. it will just give me headaches each time i will receive a billing statement. it would recommend credit card applicant their to go for low interest rate cards as it will give you credits but limited compared to the finest cards but carries a high rate in interest. low interest credit cards also give benefits just like other credit cards. don't put your credit history at risk because you don't want to start from scratch rebuilding it after committing an mistake.

This question occurred to me today. it's kind of an obvious question, but what I was wondering is, who can really afford to pay 19.8% interest?

If we're talking about credit cards and carrying a balance on your credit card and your pay 19.8%, can you really afford that?

It is my opinion that unless you have all of your savings put away for retirement, short-term savings, medium term savings etc. and you're still making good money, you can't really afford to pay 19.8% interest.

If you do not have all of your financial obligations met, then wouldn't it be prudent to put the money that you would normally spend on interest into your savings account? If you're spending $200 a month on interest, and you don't have an emergency fund set up, wouldn't your money be best used to accumulate a fund that will help you out in times of need?

I think that 19.8% interest is a luxury that can be afforded by people who make lots of money and have all of their saving obligations completed. I liken 19.8% interest to a gambling expense, or entertainment expense. I think people should only spend money on gambling when they can absolutely afford it.

What do you think? Should people that are making minimum wage be paying 19.8% interest on their credit cards? Should people with no emergency funds being paying 19.8% on their credit cards?

When is it really acceptable to pay such high interest costs on debt? you tell me.