Quote:
Originally Posted by HOOT
My favroite is watching american channels and they tell you call this number for a loan but you read the small print and a $2500 loan over so many months and interest rate it equals to like $9,700 by the time you are done paying it. No wonder why people get into money troubles.
I cant stand those Payday loans, they should be outlawed people will NEVER get ahead with those things, the interest/fees are ridiculous most likely if you are borrowing $500 this paycheck you will be paying it back with your next one and then be short again and go through the same hoops.
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All of the ads are structured to appeal to your ego.
There's even ads out there for the elderly to take their current paid
off home, and get a LOC attached to it. In it the elderly couple takes
trips, has a nice car, and gifts for the grandchildren. Why? Ego.
Who wants the 5 year old Taurus you can afford, vs the latest top
end Honda Accord, or the Volkswagen Eos? ooooh...ahhhhh...what
a beautiful car....crap, why are my bills out of hand? That last part
they don't show you.
Would you rather drive a 5 year old car you can afford, or a brand new
one off the lot that you can get by getting a car loan, LOC/2nd-mortgage?
It's easy, just go in and fill out the paperwork.
They even use terms like "equity". Use the equity in your home!
What they really mean is, give us the equity so you have nothing to
pass onto your estate.
I've even heard of people putting $5,000 to $6,000 on a credit car
in order to get the car! At 19+% interest? For a car which will
depreciate faster than that payment?
The banks (or other lenders) are trying to set it up so you are
indebted to them financially for the rest of your life. Many people
are headed that way.
Your house and your education. Maybe your car, but keep it very
affordable, and possibly buy used.
ers