About me

I'm a geek working as a distance learning specialist for a large corporation.

My Pandora "radio station" profile
This is my favorite way to listen to music now.

My Yahoo "radio station"
(Unfortunately, only works in IE.)

Shopping

Looking to purchase something online? Support Caddickisms by going through one of these links:

Caddickisms Store

Amazon.com

Calendar

June 2010
S M T W T F S
« May   Jul »
 12345
6789101112
13141516171819
20212223242526
27282930  

Topics

Posts by month

Around the site

I just watched Disc Three of the Crusade series, written by J. Michael Straczynski (JMS). Luckily, I was apparently watching one of the early discs produced since it had hisCrusade: What would have happened

F-Shaped Pattern For Reading Web Content (Jakob Nielsen's Alertbox) This is the same eye tracking idea I talked about in a previous post. The focus this time, though, is reading patterns. ScanEye-movement tracking & Web Content

Recently a North Carolina man named Tommy Jordan posted a video on Facebook in response to a letter his teenage daughter, Hannah, had written on Facebook. The video was intendedTommy Jordan: Parenting and Instant Fame in the Internet Age

Dustin Hoffman plays a down-on-his-luck anti-hero who reluctantly saves 54 people from a plane crash, including a news reporter (Geena Davis) whose purse he steals in the process of savingReview: Hero

33 Names of Things You Never Knew had Names - Words - Book of Lists - Canongate Home This is a pretty cool little list. Nice to pull out some ofWhat is that called?

Human Brain Transplantation Protocol Approved To Reverse Nerve And Brain Damage This is one of the coolest science pieces I've come across ever. You know why brain injury is so bad? BecauseHuman Brain Regeneration

Cheap trick. No, not the band. Seems like Deanna has the same sense of humor as Brother Cavel. But... we get another week of voting in, and everybody's back in play!BSG: The Last Cylon... not so revealed

How do we create? What takes us from the point where a story, or a song, or a painting doesn't exist to a point where it does exist? How doTuesday TubeWatch: Creativity - Inspiration

Looks like I am officially blogging. I am too cool for words. (Ironic, isn't it.)Check it out...

So this guy named all the episodes of classic Star Trek in 1:39 at a World Record Appreciation Society event... apparently setting a record. Eh... no big deal. That's just relativelyStar Trek - title recitation record

To continue in the vein of dissatisfaction with training, let's take a look at the experience this high school student in Singapore is having with e-Learning (found via Corporate eLearningWhere are the humans?

I'm reading a lot more comics/graphic novels now than I ever have. Sadly, that's not saying much, since I only read individual unconnected issues at a time - I neverAn attache case, an underground government, and a Spider-Man on the edge

The coolest thing about The Illusionist is that every trick he does is something that can be performed practically. The movie does use a little CGI because of production constraintsReview: The Illusionist

SciFi opens a new Stargate : Slice of SciFi As I mentioned in my last post, Stargate: Atlantis has been cancelled and will be wrapped up in a 2-hour movie. INew series - Stargate: Voyager... uh, I mean Universe

It's over. For four years of my life (which, oddly enough, took six years), I've been watching Battlestar Galactica weekly. This redesigned joy from my childhood became an engaging, exciting, andReview: Battlestar Galactica finale

Saving money thru the power of cluelessness

Earlier this year I had the windows in my house replaced. This cost more money than I had on hand, so I took the loan offered through the company who sold me the windows. Aside from an 11% interest rate, there were terms that would give me time to get a better loan at a lower rate, at which point I was going to pay off the original loan.

So, life happened and time went on. I was delayed in getting the new loan slightly, but managed to get it within a short time of the original loan beginning to accrue interest.

I called this morning to get the payoff amount for the original loan. They quoted an amount including $370 of interest. I said thank you, and hung up, ready to write a check.

Then I thought about it for a minute and realized that was way more interest than I expected, so I did some math. I computed it assuming either daily or monthly compounding, but no matter how I did it, I only came up with $160 of interest due.

$210 is a bit large of a discrepancy for me to swallow. I accept that I’m not a financial wizard, but that’s a rather big difference.

So I called back. I told them how I computed the interest and the difference I found, and asked them to explain what I was doing wrong. I knew it had to be something I was doing wrong, but I wanted to know what it was. She told me that the contract I signed was for an actuarial loan vs. a simple loan. I said, “ok. What does that mean?”

After being put on hold, the woman came back and said she’d have a loan officer call me to discuss. I said, “Great. I just want to know how the quoted payoff was calculated. Thanks.”

A few minutes later, the phone rang. It wasn’t the loan officer, it was the same lady again. This time she sounded tired… a little defeated. She reiterated that the contract I signed was for an Actuarial loan, but the loan officer decided to treat it as a simple loan, so my payoff would include just $160 of interest!

I was actually speechless for a second. A bank just ate $200 in revenue simply because I didn’t understand how an Actuarial loan worked, and they didn’t want to explain it to me. I’m positive that in reality they made no mistake in their calculations. They were legitimately owed the full $370. But simply because I asked how they got that number, I saved $210. That’s just awesome!

The lesson for today: if you don’t understand something, ask a question. Worst case scenario is that you’ll learn something. Or maybe you’ll save some dough!

Tags: ,

4 comments to Saving money thru the power of cluelessness

Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

CommentLuv badge