Go Back   The Finance Forums > Finance forums > Debt



Debt Discussions about debt and how to deal with debt.

Reply
 
Thread Tools
  #1  
Old 03-08-2007, 09:23 AM
sunshine sunshine is offline
Junior Member
 
Join Date: Mar 2007
Posts: 20
Default Interest traps

Debt has interests, we all know this but some companys claim you can pay slowly and small amount but infact the interest is much greater then what you could have been paying.
Reply With Quote

Old Sponsors
  #2  
Old 03-13-2007, 10:00 PM
financeguy financeguy is offline
Member
 
Join Date: Mar 2007
Posts: 30
Default Re: Interest traps

I think I understand what you're saying. You need to pay principal on your debt, not just interest. Otherwise, you won't be getting anywhere on paying it off.
Reply With Quote

  #3  
Old 03-14-2007, 06:50 AM
fitnessk fitnessk is offline
Junior Member
 
Join Date: Mar 2007
Posts: 24
Default Re: Interest traps

Yes if you pay too slowly, you end up paying a lot more on the loan. It is better to pay extra and apply additional to the actual loan portion so that the loan is over with quicker.
Reply With Quote

  #4  
Old 03-16-2007, 11:23 PM
shaye shaye is offline
Member
 
Join Date: Mar 2007
Posts: 30
Default Re: Interest traps

This reminds me of some scenarios that I did in Microsoft Excel for school...amortisation...the interest rates weren't bad, however the amound actually repaid to the bank was appauling...I think borrowing from a credit union is a better choice.
Reply With Quote

  #5  
Old 04-22-2007, 01:26 PM
4silverstrea 4silverstrea is offline
Member
 
Join Date: Oct 2006
Location: Canada
Posts: 72
Default Re: Interest traps

I agree with you shaye. Banks, like lawyers have to understand the role of corruption so that they can apply it to their own businesses.
Reply With Quote

  #6  
Old 04-23-2007, 01:48 PM
PiscesGirl PiscesGirl is offline
Junior Member
 
Join Date: Apr 2007
Posts: 25
Default Re: Interest traps

Also there are different types of interests we have, simple interest as in loans and credit card interests. With the credit card interests, it's more important to pay more than your minimum payment so you aren't paying as much interest on the interest unlike a simple interest loan, which is amorized over a period and the principle is paid off quicker.
Reply With Quote

  #7  
Old 04-24-2007, 01:52 PM
tater03 tater03 is offline
Senior Member
 
Join Date: Oct 2006
Posts: 169
Default Re: Interest traps

The sad thing is that alot of people still don't know this. I know when I was in school they didn't stress this at all. Wish that they would have though. But it is so true it is so much better if you can pay more than the minnium payment.
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 02:20 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.