My wife strikes again!

A charge of $100 garners 15% in interest. At the end of the year, that sounds like just $15, right? But it's actually more, due to compounding. Every month, the credit card issuer charges interest on the balance. This $100 balance is charged 1/12 of $15 (that's because it's for a month), which is $1.25. But then next month, if the $100 balance is carried over, now the credit card issuer charges 1/12 of $16.25 as interest. That's a little over an extra 14 cents. Still doesn't sound bad, right?

This happens for every single dollar in the balance. For a $1,000 balance, that 15% starts off as $12.50. Then in the second month, it's $13.54. That's added together. So for a $1,000 balance kept for just two months, the interest compounds to over $25. For a $5,000 balance kept for just one month, the interest compounds to over $60, which is right around the cost of an evening meal out.

And that's for only a month. Since we're talking about three years and $14,000, the numbers are obviously going to be higher. Every time a credit card company provides a "minimum amount to pay", they're not doing the debtor any favors. Most of the time, if it hits whatever their rock bottom minimum is, this amount doesn't even cover the cost of the compounding interest. All it does is dig a person deeper into the hole.

That sounds very irresponsible and I don't blame you for being upset. That's not fair to you. She needs a good, long time-out. Or she may have to get a second job just to pay that off. I wouldn't help her out.

One of my friends took a trip to NYC and when she got home she discovered her partner had gambled away $40,000 on his credit card. Boy, was she steamed! What an ass.

LMAO!

I cannot believe you fall for his bullshit stories each and every time!

Any one with a credit/collections background know all of this is sheer lies.

But you do you...

Your wife does not seem to understand how credit works. It's possible that she also has no idea how compounding works. I work in business credit, and it relates rather directly to personal.

Calmly (and yes, I do mean that. Getting steamed—no matter how much you want to—and I do understand that—is not going to help anything), explain that taking $ out of a credit card means it's a loan and interest is charged. It's different from taking it out via an ATM, even if you go outside your bank's network and are charged a fee.

Pull out the statements and the bills and look at them together. Show her (again, calmly) that her (for example) $20 from the card has cost $34 because of interest. Again, calmly, show her the interest rate she's paying. You don't have to go into the weeds. That will not help. Rather, (again an example) show her:

you(maybe) wrote:

A charge of $100 garners 15% in interest. At the end of the year, that sounds like just $15, right? But it's actually more, due to compounding. Every month, the credit card issuer charges interest on the balance. This $100 balance is charged 1/12 of $15 (that's because it's for a month), which is $1.25. But then next month, if the $100 balance is carried over, now the credit card issuer charges 1/12 of $16.25 as interest. That's a little over an extra 14 cents. Still doesn't sound bad, right?

This happens for every single dollar in the balance. For a $1,000 balance, that 15% starts off as $12.50. Then in the second month, it's $13.54. That's added together. So for a $1,000 balance kept for just two months, the interest compounds to over $25. For a $5,000 balance kept for just one month, the interest compounds to over $60, which is right around the cost of an evening meal out.

And that's for only a month. Since we're talking about three years and $14,000, the numbers are obviously going to be higher. Every time a credit card company provides a "minimum amount to pay", they're not doing the debtor any favors. Most of the time, if it hits whatever their rock bottom minimum is, this amount doesn't even cover the cost of the compounding interest. All it does is dig a person deeper into the hole.

Please note that I have been careful to not use the word you in this example.

This is because accusing and yelling won't fix anything.

And why am I suggesting this at all? Because, as you rightfully stated, you're on the hook for this. If she does not learn, then you could be dragged into bankruptcy eventually.

A financial literacy class would be a really good idea right about now.

Credit is not play money. A bad credit rating will dog a person forever if they don't fix it. Bad FICO scores mean not getting loans, or at least not getting good loans with good interest rates and longer payment terms.

Leaving her out there to slowly twist in the wind will do you no favors.

You said, "We are in the process of working with an agency that will help us get on the path of home ownership." Ok, the first thing they would have done is pull a credit report from the three main credit bureaus. They would have informed you of it and given you a paper copy of it. That's FEDERAL LAW, not a recommendation.

So you lied.

Then you say a sheriff came as a civil processor. That's a lie. Credit card companies sue for Summary judgements, not personal service.

So you lied. Again.

I could go on, watching you twist and turn a story that's obviously made up, but, what's the fun it that?

LMAO, there's the twisting again!

So, you're saying this "agency" broke the Fair Debt Collections Practice Act?

LMAO.

No, You lie.

Over time you have posted a hell of a lot of history of marital and family differences and difficulties. Personally, I would think the most productive way to resolve these difficulties and differences is with a counselor not with airing these on a social media site. Your poor communication between you and your wife as well as other family members is quite appalling.

Well, that's $18,000 without the attorney fees. I hope whatever she bought or whoever she helped was worth it. Guess she'll be getting another job.