Wait for this one: I was ringing out a customer the other day for their remodel project (I’m the coordinator for my store’s PSI). I pull up the total after all discounts (Except the 10% rebate they’re going to get back in 6-8 weeks once I submit it online) and they decided they wanted to do the 48 months @1.99%. Then the husband asked if there would be a penalty for paying it off early. I asked him how long he thought they’d be paying it off, and he said it would be paid within 4-5 months. I advised them to select the 0% interest offer for 6 months to save themselves the interest altogether. He agreed that it was smarter, and his wife says “so that final number you just told us, it’s going to be less now, right?” I didn’t understand so I asked her to clarify. She said “well the interest is gong to be taken off.”
So I spent the next 15 minutes explaining to them how credit cards work. They didn’t know that interest wasn’t added to the initial purchase (HOW), they didn’t know that they had to pay the amount in FULL by the 6 month mark or be hit with all of the back interest on the 7th billing cycle, and they argued about when interest began accruing. I must have had the most incredulous look on my face the entire time. They own their home, and I saw a wallet full of credit cards. This should not have been new information to them.