The Monthly Payment Scam
We have been duped into thinking in terms of
monthly rather than total payment.
Have you ever asked yourself why there always
seems to be too much month left over at the end of the money? In
the next few articles we try to answer this by seeing how we
have been lulled into thinking in terms of "monthly" instead of
"total" cost. But the total cost isn't even the worst of it.
Confused? Well, that is how your creditors want it. Here are the
Let's first set the stage with a couple real
"Oh, that won't happen to me", says you. I am
certain it won't. And I am just as certain that is exactly what
87% of those reaching age 65 said.
- A trend-reporting publication suggests
that, more men are worth more at age 18 than at age 65.
Think about it! We are going backwards.
- We surpassed 1 million bankruptcies per
year 2 years ago, and it hasn't let up since.
- IRS tells us that 85% of those reaching
age 65 do not have $200 in the bank and that 87% retire on
less than $250 per week for life.
So what happened? How did it get this bad? We
are working hard and seem to be earning a good living. In
comparison to our parents, our income is approaching wealth. But
we do not seem to be getting ahead. Why? Where is the money
going each month?
Have you ever noticed car dealers always ask
something like, “how much did you plan to spend per month”? That
is not meant to be a friendly introduction, though that is how
it comes across. Rather, by design it is a sales technique
because the car does not cost $20,000. Oh no, it only costs
$385. That’s it. No strings attached. Just $385--- for the next
I know. I was a retail manager for many years.
The greatest pitch offered was a standard refrain, “anything in
the store is yours today for just $39.00.” We did not say per
month. We did not say forever. We simply said an amount. And it
worked, over and over and over.
Ask yourself a question. When you see a
written or video ad, which price is plastered in huge, bold
print--- the total price or the monthly amount? Obviously, it is
the monthly especially if the retailer or dealer does his own
financing. [font color="#0000ff] Selling money is very lucrative
as any bank will tell you.
The merchant lists the total price only
because the law says it has to be there, but it is off lurking
in some small corner nearly invisible. And mention of the
monthly payment stays away from such naughty words as price,
cost, or anything else that smacks of anything other than your
comfort and convenience.
It is all based upon the same monthly scam
that you can still afford it even if you don't have all the
money. Ask yourself if that really makes sense. Is it truly
based upon sound judgment or is it based upon instant
gratification? Then why do we do it?
We do it because we have been brainwashed
to think not in terms of total cost, but in terms of easy
monthly payments, that’s why. The thought process goes
something like this: “Well, let’s see. This bill will be paid
next month. That frees up $22.50. And that pay raise is another
$15. And if I can just squeeze another $7.50, I can buy it...
I’ll do it!”
I know! I’ve done it and so have you. This is
how we think because this is how we have been trained to think
and the retailer and creditor knows it. We put ourselves into
their clutches, because that is what we have been taught to do
by the system.