Page 10 - eBook

LESSON 2

DEBT

INTEREST!

Let's talk about interest in your loans! If you have a loan for $10,000 with
interest at 5%, you would assume you only pay $500 in interest payment for that

loan. NO. It's called "Annual Percentage Rate" or APR. Allow me to explain: that
5% is for the year. So that's $500 for the year. If you're financing for ten years to

pay off the loan, then you pay an extra $5,000! If you only pay the minimum
payment, you will have paid $15,000 in total! (This is not including any fees).
Some�mes the interest on your loans can be more than your principal! The

quicker you pay down your debt, the faster you save thousands of dollars. When
organizing your debt, always pay off the highest interest debt first and the

lowest interest debt last! Here's another trick you can try. I had a 'line of credit'
that I needed to pay it off, but the interest payments alone were killing me. I
called my bank and said:

"Hey, I've been a customer with you for X years. I plan on paying off my loan
aggressively and would like to apply to have my interest lowered on my loan."

First, the agent on the phone said they could not do that, and I told the agent

“I want to speak with someone of higher authority who can lower my interest, as

I plan on aggressively paying down my loan”

The agent put me on hold, and within 30 mins, they approved me for a lower
interest on my line of credit. It surprised me, it actually worked. But I realized
banks are a business; they want your business and will help you pay your debt if

that means they get their money back. If you ask for the lower interest, you will
get it! So try it and don't be "phone shy"; this is your money! You deserve to pay

less!

Sankeethan Ratneswaran – 2021 Copyright 10