This plan only works for someone who has used 80% of their limit.

Scenario 1
See below calculation. 10000 limit with 8000 used.

EPP:
10000 x 18% = 1800 - This for EPP calculation
8000 + 1800 = 9800
10000 - 9800 = 200 - money that give user.
10000/24 = 416.67

Normal pay
8000 debt if pay by 5% (of debt) every month = 400 per month also can be settle in 24 months.


In this scenario, if a user can afford to pay "so called" 0% EPP which is 416 per month, he could save 1800 and pay 400 every month in which he also could settle the debt. Moreover the user could have 2000 limit for emergency use.



If the user don't have enough limit to pay for the EPP plan, it's more headache.

Scenario 2
See below calculation. 10000 limit with 9500 used.

EPP:
10000 x 18% = 1800 - This for EPP calculation
9500 + 1800 = 11300
10000 - 11300 = 1300 - money that user pay in order eligible for this plan.
10000/24 = 416.67

Normal pay
9500 debt if pay by 5% (of debt) every month = 475 per month also can be settle in 24 months.


In this scenario, user just pay 416.67 every month which is lower than 475 that he should pay to settle his CC debt. But do you realize, the user need to pay upfront 1300 in order to eligible for this plan. If user have 1300, why he need to sign up for this plan.

This post has been edited by SynHeng: Oct 8 2008, 10:49 AM