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Personal Finance and Investing

lastlib

(24,844 posts)

16. I tell them to put as much down for those big-ticket items as possible--.....

Reply to A HERETIC I AM (Reply #3)

Sun Nov 8, 2015, 08:28 PM

Nov 2015

...AFTER (and I specify *IMMEDIATELY* AFTER) they get the loan. (And demand the ability to pre-pay principal!)
Making that big "down payment" AFTER they get the loan is tantamount to paying down a big chunk of the principal of the loan--without much interest. That reduces the time it will take to pay off, and reduces the total amount of interest you pay to the maximum extent possible. This will save them tons of $$cabbage.

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16 replies

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Highlight:

Economic survival advice: what would you tell young people these days ? [View all] steve2470 Nov 2014 OP

I'd tell them never to use a debit card to pay for things. SheilaT Nov 2014 #1

nothing like the feeling of hard cash leaving your fingers lol steve2470 Nov 2014 #2

"Pay yourself first" A HERETIC I AM Nov 2014 #3

good advice ! steve2470 Nov 2014 #4

One thing to look into is a rewards type credit card A HERETIC I AM Nov 2014 #5

more good advice, I have one myself, thanks ! nt steve2470 Nov 2014 #7

I tell them to put as much down for those big-ticket items as possible--..... lastlib Nov 2015 #16

I want to emphasize how important it is to pay as many things as possible with cash. SheilaT Nov 2014 #6

I gave him my old car, totally paid off and totally fixed up to boot steve2470 Nov 2014 #8

Excellent! SheilaT Nov 2014 #9

Two things jeffrey_pdx Nov 2014 #10

good advice ! nt steve2470 Nov 2014 #11

I wish someone had gave me that advice. jeffrey_pdx Nov 2014 #12

Just from personal experience jeffrey_pdx Nov 2014 #13

Instead of a cash gift start a savings account for them that pays some interest. Sunlei Jan 2015 #14

What others have said about saving. SheilaT Jan 2015 #15