Don’t buy that Car

Of course you had always wanted that Car, it looks so cool, and you had imagined yourself to fit well in it. With imaginations flying, as you were driving through that busy intersection, a beautiful young lady stretches forth her hand requesting a lift.

She is heading downtown, but your direction is exactly opposite. Yet still, a Beautiful girl with you in a dream car, why would you say, “No!”, no man would say that. She hops in and the ride continues until her stop comes, she hops out, giving you her Number. From there on the dating starts and your love life blooms. STOP!

What the interest rate charged by a Bank means

We know the dream was great and nice. But if you were to go for the car and avail the so called all easy Car loan from your bank, are you aware of the stress you will be put through at the end of each month. A $300,000 loan from the Bank, will cost you an interest rate of say, 20%.

That would mean, you would have to repay the Bank, $300,000 + $60,000 = 360,000. Now this repayment amount applies only if you were to repay your bank within the one year time. Now what if you wish to avail a comfortable repayment period 10 years. In that case, the amount that you would be paying will stand at, 60,000 * 10 = $300,000 + $600,000 (don’t forget the principal) = $900,000

Would you believe this? Well, to tell you the truth the situation could be lot worse. This doesn’t include any Third party Car Insurance that you would need, plus the amount that would incur for the yearly maintenance, and other inconveniences.

Don’t become a Slave

So, now you would understand what it means to get a loan from a bank. You literally sign your life away. So next time you have a dream such as this, jump out and take a cold shower.

Of course the world would tell you that receiving loans is alright and it is the way people buy things. Of course banks would always want to give loans, for as the Bible says, “The borrower is a slave to the lender” So you make up your mind, whether you wish to live as a free man under the sun, or a slave slogging to meet dead lines and living a life of misery and pain, the choice is always yours.