the article also warns consumers about the dangers of taking out payday loans
Philadelphia, PA (PRWEB) October 17, 2017
There are a few scary facts about interest rates and how they work which National Debt Relief aims to share with consumers. The article titled “13 Scary Facts About How Interest Works” published October 13, 2014 takes a look at these facts in a bid to help people manage their finances better.
The article starts off by explaining what interest is all about. It the simplest sense, it is the fee assessed by lenders and creditors when consumers borrow money for whatever purpose. It can be from credit cards, mortgage loans, car loans, and even payday loans. As such, it is crucial that people have an idea on some of the important facts around it.
For one, the article explains that interest is computed as a percentage of the loan being borrowed by most lenders and pegged as an annual rate. This is important to know because as consumers borrow money, interest is added on the monthly payments to the lenders. So basically, the breakdown of payments would be interest and principal amounts.
The article also points out how cash advances should be avoided by credit card holders as much as possible. There could be times when they are faced with emergencies and forced to take out a cash advance on the card. It is important to prioritize paying that off because they carry higher interest rates compared to regular card purchases.
Speaking of high interest rates, the article also warns consumers about the dangers of taking out payday loans. These types of loans are frequented by those that gets in the middle of a tight situation without any reserve funds to speak of. This is because there are payday loans that would put as much as 600% interest rate on the amount. Missing a payment could put a borrower in a deeper debt situation.
To read the full article, click https://www.nationaldebtrelief.com/facts-interest-works/