Following on from a prior post https://edwinbruce.wordpress.com/2012/10/08/financial-literacy/
“Interest free purchase” the potential purchaser was advised by the The Warehouse sales person.
My intelligent but not financially literate friend got the first statement the other day. I found a few things interesting;
1. It was a Visa based credit card. The purchaser did not even know they had applied for and got a credit card.
2. It came with a $6k limit and a lovely brochure showing purchases and cash advances.
3. It had a $48 establishment fee i.e. about 16% p.a. up to “promotional purchase” limit used i.e. purchase of $600.
This both amuses and annoys me.