Benefits & warnings of borrowing money ....
What you need to know !!
*Simple interest - is a quick method of calculating the interest charge on a loan.
*Time -is the dead line .
*20 -amount that you should borrow ( includes credit cards but not mortgages ) should be less than 20%the annual net income.
*10 -your monthly payments should be less than 10% of your monthly net income.
*Amortization schedule - An amortization schedule is a table detailing each periodic payment on amortizing loan (typically a mortgage), as generated by amortization calculator.
Advantages & Disadvantages of borrowing ...
Advantages*Low interest rate financing , which makes bank borrowing a wiser choice than ranking up the balance on a high -rate credit card .
*If you have a monthly loan payment of $200 over a 10 -year payment period , you effectively eliminate $200 of cash flow during that repayment period .
*Having to pay back the money.
*Ongoing debt is sometimes frustrating and makes for significant budget challenges.
DIFFERENT INTEREST RATES BASED ON WHAT YOU ARE BORROWING ...
* to maximize profits, through the NIM, for their shareholders.