[sksk]

Yup, your example will amount to $.53 * 12 = ~$6 / year (assuming no deferral). Typically people end up staying in debt for a few years (4-6 years) because of the way the banks structure payments. So you may conclude, what the heck, $25 more over 4 years, why do I need to care? But you need to look at the system as a whole to address this problem. Finance is a very low return game (as % of assets) so people try to make $1-2 by charging this or that and in grand total adds up to billions. That's why nobody in the industry will switch to Simple Interest. I don't think our value prop is just saving $6/year (assuming interest rate is the same) -- it is really about doing the right thing for the consumer and keeping it simple.

Oh btw, I am comparing compound interest like how a normal person will calculate it. A credit card company does not do it this way. It is a mess and it not trivial to reproduce their calcs.

Regarding minimum payment: the evilness is not whether interest is being required at the end of the month or not (in non-deferred situations they are) but how artificially low they set minimum payments. For example, my Chase card is 1% of principal. ~40-50% of the people only pay minimum payment in the US and imagine paying at 1% principal, will take you 8-9 years to pay it off. If you change the payment just a little bit (even $50-100 / mth more) can dramatically lower your overall costs.. the credit card companies fought tooth and nail to not put 'minimum payment warning box' saying it is confusing (the idea behind the box was to tell the consumer how much the payment should be to pay it off in 3 years). Wouldn't you want as a consumer to know what's the right thing to do? We have treated credit card companies like doctors -- let them decide what's right for you. That's why we got into the financial crisis and we can do better.

We know consumers are not just going to give up on credit cards and that's why we built SimplyCredit to work on top of the existing system instead of trying to create a new one. They don't need to change anything but they now have a better financial product. Our customers not only like the convenience but also the fact they know exactly what they are getting into and there is a company that is not trick you into paying more.

Check the first link: https://www.google.com/search?q=Citigroup+to+Pay+%24770+Mill... Also check: http://blogs.wsj.com/moneybeat/2015/07/16/credit-card-fee-in...

I am glad you have not paid any interest to these credit card companies. Our hope is that we can make more and more people like you. They made ~$100+ billion in revenue just from interest charges and I think it is time to put an end to it.