Archive for February 2019

How Interest Rates Work

I’m sure you have seen interest rates on a variety of different credit cards, car loans, student loans or other lines of credit. But what do these numbers mean? An interest rate is simply what you are being charged on a loan. For example, if you take out a $25,000 car loan at 5% interest, you will not only owe the original $25,000, but you will also owe an additional $1,250 in interest over the life of the loan.

Alternatively, interest can work in your favor and tell you how much you will be paid on your money. Different savings accounts, CD’s and investment vehicles tell you exactly how much interest you will be paid by putting your money in that specific account.

If you are looking to find out how you can get interest working in your favor, check out the list of online banks and investment vehicles that we recommend HERE on our website.


Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

How Do Payday Loans Work?

I have two words when it comes to payday loans: RIP OFF! This type of lending is what I would classify as TRBL debt. T-R-B-L. Terrible. This type of lending is awful, and it should be illegal! So how do these loans work exactly?

First, these businesses set themselves up in sections of town where people have little money and little education. They prey on people who are in a financial bind and offer small loans of 200 or 300 dollars and then charge exorbitant amounts of interest. I have seen some interest rates as high as 782%!

As if paying these ridiculously high-interest rates wasn’t enough, these companies also force people to refinance these loans as often as every two weeks. This means that people are being continuously charged refinance fees on top of the crazy interest rates! Do you agree with me now? This type of lending should be illegal!

No matter how bad you think your financial situation is, I strongly urge you, do NOT fall victim to a payday loan. This type of lending is designed to trap you into a situation that you literally cannot win! Don’t let this happen to you!


Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

MONDAY MONEY TIP PODCAST: How to Never Have a Car Payment

Another episode of the Monday Money Tip Podcast is live! Many people believe they will always have a car payment but we’re here to tell you that this is simply not true. On today’s episode, we’ll share what you can do in order to never have another car payment. In our Current Money Events segment, we will cover the volatility in the stock market and later hear a success story from a woman who became debt-free including her mortgage!

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email to ask questions or share success stories.


Show Notes

About the Episode:

  • We’ll share what you can do in order to never have another car payment.
  • Get an update on the stock market in our Current Money Events segment.
  • Hear a success story from Diane, who paid off all her debts including her mortgage.
  • Hear how depreciation can (and will!) affect your vehicle’s value.

I Was Broke. Now I’m Not.
Oxen Book
Known, Upcoming Non-Monthly Expenses Calculator
CarFax Article
Investment Value Calculator

Quote of the Day: “If you think no one cares if you’re alive, try missing a few car payments.”