Most people, when they take out a loan or incurr credit card debt, don't worry about it long term. They just meet the minimum payment and hope everything is fine till next month. But a sobering thought : I looked through an interesting book, The Chinese way to wealth and prosperity, and I woke up to see the context : A 10,000 loan, if it is being repayed at the minimum 3 percent per month, and say the rate is 20 percent or so, will take 90 years to clear. 90 years is a lifetime.
A solution is to try and repay the debt a bit more, so that the capital repayment is reduced. Say, pay £30 or $30 more per month, that would reduce the time frame. Or ask for an interest-freeze, if your circumstances warrant it. Or request the bank or lender to reduce the interest rate, from 20 percent or whatever to less, much less. Once that is agreed and set in motion, you can sigh a sigh of relief.
20 percent per annum is a sobering amount. Just imagine the horrendous 1329 percent or so that some lenders charge. That ought to be outlawed.
Till next time.