Mike is all about making smart financial decisions!
He needs to take advantage of a 1/2 price seat sale on West Jet where he can save $500 (compared to the regular fare price and closest competitors flight) but he doesn’t have the full $500 needed to purchase the ticket.
He currently only has $200 in cash. He gets $300 in Zip Money and pays for the ticket and saves $500. He can then pay back $100 every 2 weeks until he owes nothing.
Assuming he borrows at $10 per $100, he pays a $30 fee in week 2, a $20 fee in week 4 and a $10 fee in week 6. That’s only $60 and therefore has a net savings of $440 plus he gets the ticket he wants when he needs it. Smart move.