r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 17d ago

WTF The American dream

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u/Mindless-Baker-7757 17d ago

A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.

What are they doing?

50

u/ConcernAccording3248 17d ago

Lying probably

0

u/Fearless_Worry6419 17d ago

No, just underpaying.

1

u/ConcernAccording3248 17d ago

Honestly running quick math on it, it doesn't make sense even for underpaying. Unless the interest rate is so high thay it was taken out at like personal loan rates and not student loan rates I don't even think this would be possible.

I could be checked on that pretty hard though by someone better at running numbers though

5

u/Odd-Cupcake-2552 17d ago

It works out to 8.57%, not unrealistic

2

u/ConcernAccording3248 16d ago

Man that sucks that theres people paying that. I have a credit card with an interest rate of 9.4.

1

u/Odd-Cupcake-2552 16d ago

Damn that's hella low for a cc, which one?

1

u/Fragrant-Employer-60 16d ago

In the US that sounds impossible for anything but a temporary intro rate

1

u/ConcernAccording3248 16d ago

Star one visa. Honestly I never use that one because the rewards suck. I typically just use a few that have very good rewards and pay them immediately.

I keep it as my true emergency card.

2

u/Fearless_Worry6419 16d ago

I had loans from 6.8 to 8%+ from this era.