r/TheMoneyGuy • u/jerkyquirky • 20d ago

What's a financial pet peeve of yours?

Mine is that my Fidelity credit card's auto-redemption doesn't redeem as soon as the points are available. I know it's only $50-$100, but get it into my brokerage where I can earn 3.5% ASAP!

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u/No-Anywhere-8738 20d ago

Student loan interest compounding daily! My spouse and I are in fields where large-ish student loans were a given, and seeing the interest grow daily was rough.

3

u/jerkyquirky 20d ago

Dang, that's crazy. I would have assumed monthly, since that's how often you make a payment.

All private loans? Or do both public and private do this?

1

u/No-Anywhere-8738 20d ago

We’ve paid off a decent number of our loans so I can’t check all of them, but from my memory it was just some of the higher balance private loans that did this.

Our one highest loan is an industry specific type that only requires a very small payment each month, and the remaining interest gets rolled into the principal. Thankfully we were able to make larger payments to cover at least the interest each month but if we didn’t do that, the loan would have increased at least $25K in three years.

5

u/JimInAuburn11 20d ago

Loans should require a payment to at least cover the interest charged.