Overheard a cashier at Target say something about store cards that got me thinking

I was standing in line at Target in Portland last Tuesday and this lady ahead of me was talking to the cashier about signing up for their RedCard. The cashier said something like 'yeah you save 5% but most people forget they even have it and just let the balance sit.' That hit me because I almost opened one for the discount but never thought about the trap. It made me realize how easy it is to focus on the small win and miss the bigger picture of carrying debt. Has anyone else dodged a store card after hearing a random comment?

3 comments

3 Comments

max_ross1d agoMost Upvoted

See the 5% as money back, not a debt trap if you pay it off every month.

oliver_morgan3d ago

How many people actually do the math on what that 5% costs them in interest?

parkera223d ago

@oliver_morgan people just see the monthly payment and don't realize they'll pay double over the loan term, same as how nobody reads terms and conditions.