Loan Interest on the long run

[nasanews]

Let us say you own somebody 50K and pay him minim 20% monthly.  Well there is a better loan percentage which is 4% on 200K.

Which one should you pick?

 

[swissie]

Your GF wants you to pay off her neighborhood loan shark and increse the debt-level to 200'000 Bht ending up on her Bank-Account.

Run Forrest, run.

[nasanews]

Why should I run, the world has been running on interest and debt, and still going on!

So instead of paying 10K per month over a 50K loan is not as bad as paying 2K over 100K loan.

[tomwct]

There is no question here! Are you out looking for a new GF?

[nasanews]

The U.S debt is more than 20 trillions and still the greatest country in the world.

[inThailand]

20% interest monthly? Even here that is excessive.

 

[Watchful]

3 hours ago, nasanews said:

Why should I run, the world has been running on interest and debt, and still going on!

So instead of paying 10K per month over a 50K loan is not as bad as paying 2K over 100K loan.

 

Nasa, you are thinking about this all wrong.  The US government borrows money at 2.15% per year on 10 year treasuries.

 

Even at 4% per month this equates to over 48% per year!  Your issue isn't which is better; the issue is you simply must unwind this debt!

 

Let me offer a strategy. Borrow from new lender $60K and with that you can pay off lender #1 (50K loan plus 10K interest).

 

Now each month you pay the new lender 10,000 and between 8 and 9 months you'll retire the loan.  Just make certain that with the new lender the deal is 4% on the balance owed.

 

Now apply your belt to your GF's ass and warn her she'll get it worse if she ever does anything this stupid again.