Africa, Dot Africa, Twitter discussed on Loanclopedia

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I complain when it's like five percents APR or eight percent Apr.. A hundred. Okay. If they have companies out, there were I need to get a job or something, and then the main product of this company would be these personal loans were really really large APR's I would frankly very ashamed of myself in working for these companies I believe these companies should not exist all because once they're they're they're sorta like tempting you to borrow a lot of money. They're essentially alone chart because once you borrow it while you're going to have to keep paying them back. Well, if you don't pay them back, you're essentially getting bad credit. They don't go as far as loan shark. We're GONNA chop off of Pinkie or something so. In a way it's close to that anyhow I. Think most of you guys are watching this channel is probably not going to go towards gaining personal loan but in the comments section sometimes I hear people ask me, Hey, should I get a personal loan to try and consolidate debt or something? So there are people out there that are thinking of using this. As sort of like a tool to consolidate, and that's another point here because these spin in such a way that they go. Oh Yeah. You know you can take out this personal loan and then you can consolidate your debts. But if you do this, you're essentially going to pay much much more then if you're taking it out from credit card because if you. Take out a personal loan at one hundred, percent, one, hundred and fifty percent APR, and then you pay into a lower. Apr. Interest rate in credit card let's say it's twenty five percent. Then you're taking out a loan with a greater interest rate for some reason to pay off a lower interest rate and this is not something that you should be doing. Now let me go over an example of what one of these personal loans look like. You can get one of these personal loans through online or like I said, you know you can hear it on the radio and then they go you know one, eight, hundred, whatever. And call them up and then they're going to loan you money they're gonNa to it right to your bank and then you're gonNA get your money. So over here is an example I went to one of these websites and I pulled up the terms of these things and I'm just flabbergasted at how terrible they are I cannot believe they can even put this down on paper and ask people to pay for this. They should be ashamed of themselves. The amount is twenty, six, hundred dollars at you can borrow. Payments Forty two payments every single payment amount is two, hundred, eighty, one dollars every single month. Okay. So roughly ten months later, you're going to pay enough to be able to pay off the initial principle that you borrowed but then you have thirty two payments who make before you pay off the full lung this is how bad the terms are the total finance charges. Now, most of these places is not going to tell you what the total finance charges either drill down pretty deep or you have to calculate yourself and most people that are. Going to borrow this kind of loans is not going to go and open up a spreadsheet and do their calculations. This way the total payments that you end up paying it's eleven thousand, eight, hundred and five dollars. You borrow. Twenty six hundred she pay back eleven thousand I. Don't know what to say about this because you only get twenty six hundred. Okay today. And then later on, you pay eleven thousand something this is so many many multiples of. What you actually get. So imagine instead of using twenty, six hundred dollars. Paying off some debt or something and all of a sudden that dead is not twenty six hundred dollars eleven, thousand dollars. Why would anyone do this? Well, you because you might be in a bind because you have zero dollars in the bank and somehow you've got to lean on this and go I, have no money at all I. Need you know a sudden chunk of money so that you can spend it but once you do this, it's kind of like Drug. Okay. Whatever drug there is. But once you taste the first thing right? You addicted except there's no addiction here you take the first one you know you can't go and get more and more loans or something because once you get the first one they're going to realize, Oh yeah you took out a loan. They're not going to loan you any more until you pay this off, and then you've got this long painful withdrawal thing for forty two months where you have to keep paying two hundred, eighty, one dollars out of your paycheck. How do you prevent this? You try to not get in the first place known. Meanwhile. Children. The best to take out a loan can be a problem. It is not always easy to know when might be the best time, but it is good idea to think hod so that you're confident that you made the best decision ever. Thank you guys for listening to this episode of Lanka pedia remember for your feedback and comments you can reach out to us across any social media platforms that is on facebook or instagram at. Africa because. Twitter at Africa, this radio listen to this particular episode or any other episode of the long. Club pedia on our podcast channel by simply visiting our website www dot Africa pieces. Regional Com is where to go to. Have a great one..

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