[thechat] Hey Buddy, Can you Spare a Dime?

Matt Warden mwarden at gmail.com
Thu Jul 16 09:51:59 CDT 2009

What other fees are required to issue the loan? Points? Are you sure
it's not secured against anything?

I would be highly suspicious of this, because the way you lay it out
is almost a loss to the bank after inflation. Certainly it is a loss
compared to inflation plus what they'd get if they put that money into
a fixed income investment with much much lower risk than lending to
you (no offense personally, just talking about the things that can
happen to you but not to the payors of other investment vehicles).

There are surely fees or some other catch. That said, as long as it is
unsecured and the interest rate is less variable, it still may be
better than your current credit card debt.

(Please forgive the top post.. the laptop is being upgraded by IT
minions and I'm using google mobile)

On 7/16/09, Fred Jones <fredthejonester at gmail.com> wrote:
> My bank wants to offer me a loan, apparently because I am good
> customer. They are offering me a pre-approved loan (no guarantors
> required etc.) of $17,500. Terms are it's paid back over 60 months of
> paying $381.25 per month for a total of $22,875, which is 130% of the
> principal.
> If I understand this correctly, this is far better than what I could
> probably get elsewhere. Even without compounding anything, one can see
> instantly that this is 0.5% per month. With compounding figured in, it
> must be less than that. I currently pay 2% finance charges on some of
> my credit card debts.
> So unless I'm missing something, this is a good deal. Right?
> ___________________________________
> thechat: bovine by-products and MP3s
> thechat at lists.evolt.org
> http://lists.evolt.org/mailman/listinfo/thechat
> http://lists.evolt.org/thechatarchive/
> ____
> Got RSS? Add your feed to http://planet.evolt.org/
> See also #evolt on irc.evolt.org and http://spool.evolt.org.uk/
> ____
> Please support the community that supports you. Give your bit to
> evolt.org at: http://evolt.org/help_support_evolt/

Matt Warden
Cincinnati, OH, USA

This email proudly and graciously contributes to entropy.

More information about the thechat mailing list