28/08/2009

Low Monthly Re-Payments- Forever?

Or why low monthly repayments of loans are determinant to our financial well-being.

 

Paying $100 a month for 24 months costs a lot more than paying $150 a month for 12 months. And minimum monthly payments on credit card bills and such can have you paying interest on a take-out pizza for decades! So don't base your borrowing decisions on low-monthly-payments alone. Low monthly payments are great – for the debt pushers. They're practically pure interest and they can stretch your payments out endlessly.

 

Source: Top Ten Tricks of the Lending Trade