November has passed, the last month of 2020 is here and many people look for reasons to celebrate. In this pursuit, their finances may take a hit – even if they are aware it is advisable to spend less overall.
Emotion is a powerful trigger that can lead someone to spend what they don“t have. Debt, such as that comes from credit cards, can become heavy. So instead of having compound interest working for their interests, it can work against them.
Let“s see how – and also how investing at Iban Wallet can be an alternative, with enough patience.
Debt can be seen as „an amount of money borrowed by one party from another“. This makes it possible to spend more money than one currently has available. They would pay it back further down the line.
The price? Interest.
How big the price will depend on the rate. Take the example of France: according to data regarding April 2020, the average interest rate on new revolving loans granted by consumer credit specialists was 12.88%.
The matter becomes whether that price is worthwhile. Debt is a tool, and capable of both positive and negative outcomes. Homeownership, for one, is greatly aided by debt.
Consider the following example of a EUR1,600 purchase:
Borrowed amount: EUR1,600
Interest rate: 15.7%
Minimum Payment: 4%
Time to pay off: 83 months
Average monthly payment: EUR27.44
Total Paid: EUR2,277.59
Balance: -EUR677.59
Now let“s see what that monthly EUR27.44 could mean in an Iban Account over the same period:
Monthly Contribution: EUR27.44
Projected interest rate: 2.5%
Years: 6.9 (83/12, rounded down)
Total : EUR2,485.72
Total – EUR1600 purchase: EUR885.72
Investing can be a powerful resource in people“s financial lives. One thing that is of great importance is the realization of the cost behind each decision.
By taking a comprehensive and objective look at the numbers, it becomes clear that immediacy has a price that is not always considered, but takes its toll as time goes by. Adding more purchases on credit can exponentially increase this effect.
Fortunately, while it is easy to access credit, it is increasingly easy to access investment solutions. With Iban Wallet, people are able to add more value to their funds, with a simple interface, flexibility and starting from just €1.
This way, it can be seen as an enabler of goals and builder of wealth. It may take patience, but most good things do.
Take a look at Iban Wallet and what we can offer: www.ibanwallet.com
Iban is an online marketplace that offers investment opportunities at a projected interest rate derived from investment in loans from various lenders
Contact
Iban Wallet
Sigrid Arteaga
Christburgerstr. 23
10405 Berlin
Phone: 01703432086
E-Mail: pr@ibanwallet.com
Url: http://www.ibanwallet.com
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