What are some of the Interest Rate Traps that you may have fallen into?

i tripped over one the other day and it almost snapped my toe off! :sailing:

What are some of the Interest Rate Traps that you may have fallen into?

We are talking about money issues here. Mortgages, credit cards and auto loan to name a few...

sorry though rat traps :D

actually yeah, auto loan got me .. been paying since 2001 .. they repoed it for 6 months then when they couldnt sell it (or not for as much as they could get out of me paying for it) they gave it back to me at a lowered rate ($700 down to $600) only for 1 year then it went back up to $700 a month, then i asked them to drop it again as i had trouble paying that .. so far been paying it on time this whole year ... dont know how much longer I have but I know its still like $11K left to pay on it, in the end the $31K vehicle will have ended up costing me maybe $50K ... more or less, and will only be valued at around $10K. :(

the $31K vehicle will have ended up costing me maybe $50K ... more or less, and will only be valued at around $10K. :(





:sparky: that is how the war set; Like Hugo Chavez say, from the World Bank, to your local neighborhood commercial bank, it is about keeping us in debt...but, thank gawd for my credit card, yesss siirrr!

...but, thank gawd for my credit card, yesss siirrr!

Tell me more about the goodness of credit cards?

I have been treated fairly on one of my education loans, and have not seen it as an interest rate trap.

I mean, if I borrow let's say $1k, I expect to pay interest of about $100-$200...to be more than generous. Am I too naive on the matter?

You think 10 to 20 percent is generous?? Well, that depends on the length of the loan.

I've never heard of an interest rate trap.

Maybe unscrupulous lending practices but there are laws against such practices - I would expect in a society heavily dependent on banking that there are also laws to protect Bahamians.

You think 10 to 20 percent is generous?? Well, that depends on the length of the loan.


I mean, I have not taken out a loan in about 3 years...so I may not be up to date on the types of rates. Can you give me some idea from rates between 1k to about 20k....reasonable rates to look out for?!?!

Depends on the length of time you're borrowing. If you're borrowing 1,000, its safe to assume that you're expected to pay it back in a year or two. I think the going rate in Nassau is about 8 to 8.5 - so if you borrow for a year you'll end up paying back 1085 to 1,177 for two years. A 20,000 loan will probably be a 5 to 6 year deal. If its 5 years you'll probably pay 22,050 to 26,801 for six years assuming its a bullet.

Depends on the length of time you're borrowing. If you're borrowing 1,000, its safe to assume that you're expected to pay it back in a year or two. I think the going rate in Nassau is about 8 to 8.5 - so if you borrow for a year you'll end up paying back 1085 to 1,177 for two years. A 20,000 loan will probably be a 5 to 6 year deal. If its 5 years you'll probably pay 22,050 to 26,801 for six years assuming its a bullet.



So 8-8.5% is standard?
Cool...

So the 5.75% mortgage in the Bahamas is a pipe dream (like the US these days)?:shhh:

In college I was stupid and used a credit card at 19%+. I no longer have that card.

So the 5.75% mortgage in the Bahamas is a pipe dream (like the US these days)?:shhh:

In college I was stupid and used a credit card at 19%+. I no longer have that card.



Nikki Kelly daughter said in her Punch column that there is no such thing as a fixed rate mortgage, is this true, and if yes, how is it that the bank can trap me with an 8.5% sales pitch, and when I am comfortably in her embrace, jack the rates up on me?

Nikki Kelly daughter said in her Punch column that there is no such thing as a fixed rate mortgage, is this true, and if yes, how is it that the bank can trap me with an 8.5% sales pitch, and when I am comfortably in her embrace, jack the rates up on me?



No such thing as a fixed rate? I don't get it....