When you take out a loan, they promise the add-on payment will not exceed 5-6 % of the sum of the credit. However, sometimes one ends up paying 20-30 %... When one takes the case to the court, they say there's nothing to be done about it. The reason is that there are some indirect payments not included in the original loan contract.
So, what other loopholes can they embrace and how do you avoid them?
2007-07-26 01:02:31 · 2 answers · asked by wondersz1 2 in Business & Finance ➔ Credit
Its important to read the loan contract carefully. Better yet, it's important NOT to take out a loan.
Simple math of compounded interest is what can do this to you. Imagine how much farther you'd be ahead if you paid YOURSELF this loan payment and the extra 5-6 (or 20-30) per cent for a few months...you'd then have the money to get whatever it was that you were taking the loan out for in the first place.
It is the creditors who have very successfully indoctrinated our generation into believing that debt is not only ok, it's good. The only people debt is good for is the creditors, who are putting that extra 20-30% in their pocket on a regular basis. You wonder why the rich get richer? That's why.
2007-07-26 01:07:30 · answer #1 · answered by Scotty Doesnt Know 7 · 1⤊ 1⤋
No one forces you to take the "add-ons". That's not trickery on their part, it's stupidity on yours for not reading what you're signing.
2007-07-26 12:25:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋