I have been thinking for a long time that I should write about this topic, and now I have a question about it, so I will not postpone it.nThey even advertise these opportunities to BAR-listers and retirees without proof of income. (Although they have recently quit, perhaps Consumer Protection has hit their necks.)
If I add up the numbers, I get, for example, a $ 1,000,000 loan and can pay it off with no interest for 15 or 30 years. All right, in the small print, a modest 2.1-3.92% management fee or commission fee is charged every year , but that’s negligible compared to bank interest rates.
Before we move on, I would for a moment dive into the ads that no company name, no address, no website, no office, no landline phone. I wouldn’t trust such a company to bury my dead cat, let alone my finances for 30 years. If we exaggerate this trifle, then remember what I have been saying for years:
If an offer is too good to be true, it is not.
These companies, while suggesting that they give credit to those who approach them, are not really any of those. These companies organize so-called consumer groups, which provide savings and no credit. By joining such a group, for years, we only collect money for which we do not receive interest , and even we pay 3-4% a year to companies.
So one lucky one (or able to pay more) can get the coveted money in the first month and then repay it, and the other one has to wait 30 years and then it is free of interest and even at 4% cost. If you leave the system because you realize that this is not an option, you will only be charged at the end of the term (5-10-20-30 years), with no expense and no interest on your payments.
Each month, either a lucky “winner” is drawn from the group
Who prematurely receives the money he or she needs from the money collected by the group, or, if not drawn, the one who promises the highest monthly repayment , can forfeit the amount so far.
We do not need to be a math teacher to realize that, based on average odds, we are in the middle of a run, that is, in 8-15 years. So if you want to save, you have a thousand other options where you get interest and you don’t even have to pay. If you want to tempt your luck, the casino will go down faster. But if you need credit, you won’t get it here, so think carefully about what you’re getting into.