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August Banter 2014

mackerel_sky

By mackerel_sky,
in Southeastern States

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calculus1

calculus1

Posted
Posted

I don't get it.

 

Customer A owes $20,000 to Cold Rain for previous payments that he has not paid.

 

Customer A owes an additional $10,000 every quarter (a 3-month period of time).

 

Customer A has offered to pay $3000 every month (in a futile attempt to repay his debt).

 

Payments of $3000 per month will amount to $9000 per quarter.

 

Thus, after one quarter has passed, customer A will still be short $1000 on that quarter's required payment of $10,000 and will now be $21,000 in debt.  If he continues with this payment plan, his future debt obligations would look something like this:

 

Current debt:  $20,000

Debt after one quarter:  $20,000 + $1000(1) = $21,000

Debt after two quarters:  $20,000 + $1000(2) = $22,000

Debt after x quarters:  $20,000 + $1000(x)

 

Thus, the customer will never get out of debt under this payment plan and will actually be further in debt in the future than he is now.

 

Also, these calculations are assuming that Cold Rain is not charging interest on this debt.  If interest is being charged, then customer A is in an even worse position.

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jburns

jburns

Posted
Posted

Customer A owes $20,000 to Cold Rain for previous payments that he has not paid.

 

Customer A owes an additional $10,000 every quarter (a 3-month period of time).

 

Customer A has offered to pay $3000 every month (in a futile attempt to repay his debt).

 

Payments of $3000 per month will amount to $9000 per quarter.

 

Thus, after one quarter has passed, customer A will still be short $1000 on that quarter's required payment of $10,000 and will now be $21,000 in debt.  If he continues with this payment plan, his future debt obligations would look something like this:

 

Current debt:  $20,000

Debt after one quarter:  $20,000 + $1000(1) = $21,000

Debt after two quarters:  $20,000 + $1000(2) = $22,000

Debt after x quarters:  $20,000 + $1000(x)

 

Thus, the customer will never get out of debt under this payment plan and will actually be further in debt in the future than he is now.

 

Also, these calculations are assuming that Cold Rain is not charging interest on this debt.  If interest is being charged, then customer A is in an even worse position.

 

Congrats.  In my experience, only one in ten math teachers could have explained that without a single mention of freaking pi.

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Cold Rain

Cold Rain

Posted
Posted

Customer A owes $20,000 to Cold Rain for previous payments that he has not paid.

 

Customer A owes an additional $10,000 every quarter (a 3-month period of time).

 

Customer A has offered to pay $3000 every month (in a futile attempt to repay his debt).

 

Payments of $3000 per month will amount to $9000 per quarter.

 

Thus, after one quarter has passed, customer A will still be short $1000 on that quarter's required payment of $10,000 and will now be $21,000 in debt.  If he continues with this payment plan, his future debt obligations would look something like this:

 

Current debt:  $20,000

Debt after one quarter:  $20,000 + $1000(1) = $21,000

Debt after two quarters:  $20,000 + $1000(2) = $22,000

Debt after x quarters:  $20,000 + $1000(x)

 

Thus, the customer will never get out of debt under this payment plan and will actually be further in debt in the future than he is now.

 

Also, these calculations are assuming that Cold Rain is not charging interest on this debt.  If interest is being charged, then customer A is in an even worse position.

So, I proposed a more serious alternative to the client today. Rough numbers for simplicity:

Current balance is $20,000

Client will pay $10,000 now, carrying a forward balance of $10,000.

In October, the client will owe an additional $10,000, bringing the total balance to $20,000 once again.

We'll pause here for a few words from our sponsor (and to let Metal catch up).

Looking for the perfect end to that perfect meal? Well, the search is over. Calc's Classic Key Lime Pie livens up the most boring of dinner parties. Passed down through generations, this secret family recipe is sure to keep your guests coming back again and again. Need to unlock your dinner potential? Use a key.... Calc's Classic Key Lime Pie. Dessert will never be the same again.

Now back to our program:

$20,000 is the balance through 12/31. Due to the client's financial hardship, I offered $2500/month, starting in September, through the end of the year. That would bring the balance back down to $10,000 by 12/31. The client would then have until 3/31/2015 to pay that, plus the Q1 fee of $10,000, bringing the balance to zero. The client would then pay the quarterly invoice in their entirety, going forward in order to avoid termination.

That was the offer. No interest, no fees, and plenty of time to square the balance. I think that's a pretty fair deal. :)

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mackerel_sky

mackerel_sky

Posted
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Posted

So, I proposed a more serious alternative to the client today. Rough numbers for simplicity:

Current balance is $20,000

Client will pay $10,000 now, carrying a forward balance of $10,000.

In October, the client will owe an additional $10,000, bringing the total balance to $20,000 once again.

We'll pause here for a few words from our sponsor (and to let Metal catch up).

Looking for the perfect end to that perfect meal? Well, the search is over. Calc's Classic Key Lime Pie livens up the most boring of dinner parties. Passed down through generations, this secret family recipe is sure to keep your guests coming back again and again. Need to unlock your dinner potential? Use a key.... Calc's Classic Key Lime Pie. Dessert will never be the same again.

Now back to our program:

$20,000 is the balance through 12/31. Due to the client's financial hardship, I offered $2500/month, starting in September, through the end of the year. That would bring the balance back down to $10,000 by 12/31. The client would then have until 3/31/2015 to pay that, plus the Q1 fee of $10,000, bringing the balance to zero. The client would then pay the quarterly invoice in their entirety, going forward in order to avoid termination.

That was the offer. No interest, no fees, and plenty of time to square the balance. I think that's a pretty fair deal. :)

Throw in 2 boberrys, it's a done deal!
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calculus1

calculus1

Posted
Posted

So, I proposed a more serious alternative to the client today. Rough numbers for simplicity:

Current balance is $20,000

Client will pay $10,000 now, carrying a forward balance of $10,000.

In October, the client will owe an additional $10,000, bringing the total balance to $20,000 once again.

We'll pause here for a few words from our sponsor (and to let Metal catch up).

Looking for the perfect end to that perfect meal? Well, the search is over. Calc's Classic Key Lime Pie livens up the most boring of dinner parties. Passed down through generations, this secret family recipe is sure to keep your guests coming back again and again. Need to unlock your dinner potential? Use a key.... Calc's Classic Key Lime Pie. Dessert will never be the same again.

Now back to our program:

$20,000 is the balance through 12/31. Due to the client's financial hardship, I offered $2500/month, starting in September, through the end of the year. That would bring the balance back down to $10,000 by 12/31. The client would then have until 3/31/2015 to pay that, plus the Q1 fee of $10,000, bringing the balance to zero. The client would then pay the quarterly invoice in their entirety, going forward in order to avoid termination.

That was the offer. No interest, no fees, and plenty of time to square the balance. I think that's a pretty fair deal. :)

 

I got a little distracted by the PSA in the middle, but overall it does sound like quite the fair deal that you're offering.  (Hmmm....Pie.)  Now, you'll just have to wait and see if the customer can follow through with it.

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