Since we were kids, we have heard our parents talk about loans and the way they can solve a problem. But each day that goes by, we've got deeper and deeper in debt and about to lose our home. Then, thanks to the Fairy Godmother or call it a lucky wave, if you like, we miraculously got out of disaster zone without our parents really knowing what happened.
Believe It Or Not
There is so much to learn in the outer world. At school we are taught so many things that give us a "general knowledge" of things, but they don't teach us about compound interest. They don't teach us how to use our money or how to avoid falling into an endless spiral of debt, until we are completely broke.
So You Need A Loan?
What for? To buy something that won't fit into your credit card? Okay, I'll tell you a little secret. The interest you're paying on the credit card financing is so great, that you really wouldn't believe it. First off, then is to clean up the mess you've made with your Credit Card.
It's About Time You Paved The Way
Yes, pave the way to a better life, on earth, for now. Take a loan to get rid of your Credit Card debt and start anew, only charging the card with expenses that you will be paying fully at the end of the month. The interest of a loan is chicken feed, compared to what you are paying on the Credit Card refinancing.
The Usual
The usual APR is between 6 and 8 per cent and you have a fixed amount of monthly payments and that's the end of it. Credit Card interest is more like 18%, plus the regular fee for the use of the card and in addition to this, since you are paying the minimum amount every month, your debt will always be with you.
Think About It This Way:
The money you pay out should be considered as an investment. You invest in food for your health. You invest in insurance to get the benefit of not losing a large capital, like a house, a car, jewels or whatever. Similarly, you invest in a loan to get out of trouble, not to postpone a sure downfall.
The necessary outcome of taking a loan is a favorable balance at the end. Whether it is to pay debt, to buy something you need or even just something you like, be wise and don't put your future at risk because you were just too desperate to do your homework.
They Don't Teach You.
At school they don't teach you to negotiate, either. It's all orders, indications, rules, obedience. but life is much more than that. And if you don't learn it at school, you have to learn it the hard way, making mistakes. or with a good preparation before you start doing business.
A loan is a business, a transaction between two equal parties. Each one has something the other wants. You want the lender's cash and the lender wants your interest money, the "rent" for having "hired" the cash. That's all there is to it.
