For more than a month now, ads for financial companies have been about nothing but good debt at 20-30-40% per annum.
Make Christmas more beautiful by buying a loan that you wouldn’t otherwise have the money for. You can also feel rich under the Christmas tree, and don’t worry too much the next day.
“Giga deals” on credit cards, special loans on loans, return one month’s repayment each year because they are such good heads and the rest.
Which electronics item would you like to get back 6% just because you paid by credit card, the ad asks.
How well does a one-month repayment installment come in
what would you pay for it? That’s how another one says. (Remember, what would you pay for the 21% annual interest that you would pay beyond that. Really, what would you do with $ 210K a year if you could now and not borrow one million?)
We give a personal payday loan for up to 9.9% interest, which is almost free, says a third. (Yeah, only if you borrow more than $ 800,000 and you are a very good debtor earning at least $ 250,000 net. Otherwise 21% APR.)
A fourth ad calls up in as little as one hour. (You can pick it up lightning fast. The repayment will take 3-5 years.)
Before you be seduced by these siren sounds, let me point out a few things
Why is it such a big deal to buy an electronic product that is too expensive for you with a 6% discount that you can’t pay for immediately if your credit card costs 39% a year? A 200K TV that you save $ 10 for a refund will cost you $ 445K over five years. Then how much did you actually save?
During the holidays, your soul will tingle as you watch the show on this beautiful new TV. But in four years’ time, when you’re still paying for the damn TV that will be a worn-out and obsolete model (if it still works), how much joy will you have in your soul? Especially if you realize that you still owe one-third of the TV, you’ve paid $ 353,000 so far for the otherwise two hundred thousand.
Before you get caught up in the Christmas frenzy and feel compelled to buy gifts out of your fort, take a moment to sit down and try to figure out what you got for Christmas 5 years ago. Got that gift yet? Do you remember what it was?
Well, the one who borrowed a 5-year personal payday loan to surprise you with it still pays off your repayments. Not only is the gift missing, but not even his memory.
If you are poor and have no money for expensive gifts
The surest way to stay poor for the rest of your life is to borrow yourself, just to feel rich for a day.
Don’t be fooled. Don’t buy anything or anything expensive for Christmas this year, set aside $ 10-20-30,000 of your monthly unpaid loan each month and next year you’ll have a rich Christmas without credit. (Unless you realize that Christmas is not about moving out and shopping.)
A word like a hundred: Don’t sit on the commercials and take the credit, just because it’s so quick and easy to give, because the end of it will be painful. At best, you pay only a wheelbarrow of money for interest, at worst you end up in a credit trap and you can lose everything because of too much credit.