Many years ago, we published an article about the typical loans that we get, and how much interest amount we end up paying, but sadly, not too many people pay attention to. Here’s a link to that original article:
I recall presenting the same materials to a group of hotel employees, as part of a personal finance and financial literacy seminar. Majority were shocked and surprised, while one was even angry, telling me I am exaggerating and that the numbers I used were bloated.
Hello?!? There were 3 bank employees present in that presentation, including myself, and we all work for consumer loans at that time. And we all agreed that these are the real numbers.
I think it’s about time to refresh such presentation, to reiterate these truths, and to remind more people about it. So in the video below, we discussed, not just personal loans and home loans, like in the older version, but we also included a discussion on auto loans and credit cards. More details, more examples and tips to aid us in our financial decisions.
If you were able to watch our previous video on Add on Rates and Effective Yields, then the following video is a highly recommended next video to watch. If not yet, then click above link for the video.
To reiterate, we discussed the following in this new video on Truth Behind Loans:
- Loans are not necessarily bad. Like all tools, if used properly, it can be beneficial
- Use loans for purchase of assets and investments that increase in value over time, or for a necessity, or carefully assessed business venture. Not for a whim, not for wants.
- Loans can be expensive, as you’ll see in the video, so be mindful of how much you’re paying.
- Where to get lower rates for auto loans and home loans (vs what the dealership or developer offers)
- Why it’s important to pay your credit cards in full. Always.
Here it is. Enjoy the video! Don’t forget to subscribe to our YouTube channel ok?