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Originally Posted by Chamelion
Loans need not be bad..
Ours - $6000 over 3 years at 10.99% fixed rate (Easystreet unsecrured personal loan).
Total payment is about $7049.63 at $45.19 per week min repayment.
$6.72 per week in interest... VERY SMALL price to pay so that we can have the car now as opposed to saving for 2.5 years and having to drive a peice of in the meantime.
Matt.
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Yes, granted with a small loan like yours it makes sense, but too many people take loans for cars of $20000, $30000 and more. By the time they pay the loan off and all the interest, their car is worth next to nothing. Some people need to have longer term goals. Maybe buy a car for $5-10,000, put money towards a house, then over time buy their dream car. A lot of people want everything now, and not work for it, and find that they get themselves in trouble. Yes not all loans are bad, but when you take a loan on a DEPRECIATING asset, you must think it through carefully.