I went to pay a couple of personal loans off today...and oh boy they tried everything in their power to get me not to. They made me leave feeling like I did something wrong!! They said things like, "you know this is the wrong time of the year to be paying us out." Well, I always thought that it benefitted them to get extra cash???!!
2007-11-20 11:39:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Because you're costing them money. If the loans are paid out early, then they can't collect interest for the remaining time on the loan.
2007-11-20 11:43:40 · answer #1 · answered by Angie 6 · 3⤊ 0⤋
No!! They are upset because you did pay them off early. Several companies who lend would like to see the loan go full term. They are then assured that there are loans which are making them income. Also perhaps the economy just prior to holidays is not the best time for lending institutions. People will be borrowing money after the Holidays to pay the bills they incurred, and not prior to the debt incrred.
2007-11-20 19:52:44 · answer #2 · answered by googie 7 · 1⤊ 0⤋
Loan companies love to have debtors who are reliable. After all, they live on interest income, and reliable debtors provide that income. They would rather keep you than look for clients who are not as reliable.
It is wise of you to pay off personal debts. The interest on them is not tax deductible, and the interest rate is often high. The financial freedom you have when you are debt free can be exhilarating. You are in control of your money instead of your money controlling your life. Congratulations.
2007-11-20 19:45:45 · answer #3 · answered by Anonymous · 2⤊ 0⤋
You know what they say when you take out the money bankers lose interest.
Loan is an investable asset to loan companies and when you pay them out they no longer have this asset that provides them with revenue.
It is also wrong for them to try to persuade you from paying them out as this is your prerogative.
2007-11-20 19:58:53 · answer #4 · answered by Jake 3 · 2⤊ 0⤋
They are losing the interest...
2007-11-20 19:52:09 · answer #5 · answered by boohoo1964 3 · 1⤊ 0⤋