By JLP | April 29, 2013
A front page article in this Sunday’s NY Times was about pension advances.
I don’t know about you but, when I hear the term “advance” a red flag appears. I automatically see a high interest loan.
Being true to their “painting everyone as a victim” ways, the article detailed an advance taken by a Mr. Govan. He took out a $10,000 advance and agreed to pay $353 per month for SIXTY months. Then, he did the math AFTERWARDS and figured out the interest rate was around 36%. Now he’s upset.
I’m not sure what prevented him from the doing the math before he took out the advance.
Is a 36% interest rate ridiculous?
Hell yes it is. But, that’s not the point. The point: he should have done the math first. Unless the company lied to him (always a possibility), he has no one to blame but himself. He agreed to the terms. Now he’s screwed.
Let me let people in on a secret: lenders are not your friends! They are out to make money. The sooner you realize this, the better off you will be.