Make it like the new college debt rules. If you are making the minimum payment, then your total balance can’t go up. Interest can’t be higher than the minimum payment (which is also capped)
When you take a loan for {principal} over {n_periods} compounded by {frequency} at {percentage}; it turns out that there’s a mathematical formula that results in the exact cost of the loan. You can negotiate any of those parameters to achieve that flat-rate equivalent.
But watch out. Because lenders that will agree to flat-rate lending are also most likely to do so on an absolute cost-basis; meaning there is no benefit and perhaps even penalty for early payment.
Compounding isn’t all evil. Debt isn’t inherently evil, either. Like any instrument, it can be tool to improve your life and/or others’, or it can be a weapon to harm yours or others’.
Should be 0. If you’re late on a payment, you pay compounding interest. The idea that you can somehow charge a fee on top of that is absolutely insane.
I think it should be lower still. $5 max.
But really they need to go after interest rates. That’s where the real theft occurs.
Make it like the new college debt rules. If you are making the minimum payment, then your total balance can’t go up. Interest can’t be higher than the minimum payment (which is also capped)
deleted by creator
When you take a loan for {principal} over {n_periods} compounded by {frequency} at {percentage}; it turns out that there’s a mathematical formula that results in the exact cost of the loan. You can negotiate any of those parameters to achieve that flat-rate equivalent.
But watch out. Because lenders that will agree to flat-rate lending are also most likely to do so on an absolute cost-basis; meaning there is no benefit and perhaps even penalty for early payment.
Compounding isn’t all evil. Debt isn’t inherently evil, either. Like any instrument, it can be tool to improve your life and/or others’, or it can be a weapon to harm yours or others’.
deleted by creator
Should be 0. If you’re late on a payment, you pay compounding interest. The idea that you can somehow charge a fee on top of that is absolutely insane.