Today is the day you come to find the reasons why many people stay poor. As a part of Building Your Life as a Business, you have to understand this fundamental truth. That no matter what you do with your money, there is and will always be someone who is more than willing to liberate you of the burden of weight keeping it in your wallet.
Because of this truth, you need to be just as wary of the opposite. Which is anyone who is willing to lend you money. As borrowing money is one of the easiest ways for you to keep yourself poor as you continuously give away your future wealth for something nice now.
This profession of giving money to people to buy things they don’t need or can’t afford has been around for ages and still exists today. These Lenders are called sharks and the loans they give are shark loans. They are given such a name because of their predatory nature. Because the loans have too high of interest rates and other bad terms that take advantage of you and your ability to pay.
Let’s go over two bad examples of people who give shark loans:
Shark Loan One: (Based off a true story.)
You need a car.
You need one as soon as possible.
You walk onto a Used Car Lot.
You walk away with a $12,000 loan and a Used Car.
You have a 4 year loan at $400 dollars a month.
Which means you will pay $4,800 dollars per year for 4 years.
Coming out to $19,200 for a car that is only worth $12,000.
Even worse, you drive it off the lot and it immediately loses $3,000 dollars in value. (As most cars do.)
So if you ran into money trouble and couldn’t make your car payment, you couldn’t even sell the car to cover the original loan amount.
You pay your car off for 2 years, and then something expensive breaks in the car. You have to pay it off because if you don’t you can’t go to work so you can keep making payments.
The extra expense ultimately affects your ability to pay your car payments, and you miss a few.
Your car is then repossessed and they demand all your past car payments plus current ones to get it back.