Designer clothing and t-shirts for wake, skate, snow and surf by nosymbolrequired
more banks own cars than people do:
funny huh?, but they do. If we take into account that most people have bank loans for their cars, and these are not owned at all by the individuals until ALL of the debt is paid off, then the Banks in England own one hell of a lot of cars.
Now, lets add some more. By taking out a car loan for 10,000 pounds (just to make the sums easier) you will end up paying 12,670.12, in total and 210.12 per month for a term of 60 months. Thats 2,670 pounds to the bank just for the pleasure of borrowing the money.
Instead lets try it another way. By saving 210.12 per month in an ISA for the same period. Over the 60 month term, at an interest rate of 5% you would have 14,289 pounds. And infact, if you were only aiming to raise 10,000 pounds, you would get to this amount in 3 years and 8 months - pretty good?
So why not wait? why pay for things upfront to make the banks more money? Hell, we all like the nice smell of a new car, we all like showing people that we have new things, wether they be cars, planes, clothes or shoes. But, I think we all need to ask ourselves some questions. Do we NEED the new car now or can we wait? If I saved for it, wouldnt I feel better about myself?
If you look at the figures, it all adds up, and thats on a fairly cheap loan rate. So it would be even worse if you took it all out on something terrible like a credit card. Some credit cards still have ridiculous interest rates of 23 plus percent. Imagine how long it would take you to pay off the 10,000 on that, when I calculated the rate at 7.7% ? incredible.
nosymbolrequired are in business, like anyone else, to make money. We would like to do this a bit differently though, and I for one, would like to know I am not getting people in debt or using their credit cards to buy our stuff. Remember, we are a small company, and could do with your cash, but if you can wait, so can we. And, we dont NEED you to buy t-shirts, we would LIKE you to.
Please note: mark isn't an accountant, he actually doesn't know much about savings. To be honest, he's not very good at business either, I mean look what he's just told you above. daft
