18,250% APR?
K9 comes home from camp yesterday, and we have this conversation.
"Mom, I need to bring a dollar-fifty to camp tomorrow."
"What for?"
"Cuz I borrowed a dollar from Nate today. It was SO hot, I just HAD to buy a slushie. You've got to give me more juice with my lunch, Mom."
"Ok, so, you owe him a dollar?"
"No, he said I had to bring him a dollar-fifty."
"WHAT?! Who ever heard of fifty percent interest a day? Is that kid out of his mind?"
"Mom, he actually gave me a good deal. I tried to borrow from another kid, and he said I'd have to bring him two dollars back."
"Tell you what, give your friend Nate a dollar and a dime, and tell him to consider himself lucky that he's getting such a good interest."
"But MOM, we made a deal! A deal is a deal! You can't break it."
So, because my financially challenged son had, in fact, made a deal, I had to give him a dollar-fifty and tell him not to borrow from anyone ever again. But, I really wonder what's going on here. What's with the kids charging one another crazy interest rates? I've never heard of this before, is it only in our area or do you have it where you live, too?
"Mom, I need to bring a dollar-fifty to camp tomorrow."
"What for?"
"Cuz I borrowed a dollar from Nate today. It was SO hot, I just HAD to buy a slushie. You've got to give me more juice with my lunch, Mom."
"Ok, so, you owe him a dollar?"
"No, he said I had to bring him a dollar-fifty."
"WHAT?! Who ever heard of fifty percent interest a day? Is that kid out of his mind?"
"Mom, he actually gave me a good deal. I tried to borrow from another kid, and he said I'd have to bring him two dollars back."
"Tell you what, give your friend Nate a dollar and a dime, and tell him to consider himself lucky that he's getting such a good interest."
"But MOM, we made a deal! A deal is a deal! You can't break it."
So, because my financially challenged son had, in fact, made a deal, I had to give him a dollar-fifty and tell him not to borrow from anyone ever again. But, I really wonder what's going on here. What's with the kids charging one another crazy interest rates? I've never heard of this before, is it only in our area or do you have it where you live, too?
