I finally noticed that I’d barely put a dent into the loan’s remaining balance! What the heck!? I’d made sure to set up auto-payments to ensure that I wouldn’t be late for any payments! Shouldn’t this remaining due be a lot lower!?
That’s when I had my first noticeable experience with the results of high-interest rates. My car, fortunately, had a low-interest rate of less than 10%. I barely noticed the interest fees. However, those fees are a LOT more apparent when the interest rate is significantly higher!
The good news is that I was both allowed and able to pay that loan off early thanks to heavy budgeting and multiple jobs, but that experience made me realize that I did not understand the math behind interest rates and calculating loans.
And I couldn’t be the only individual who didn’t understand it seeing that the U.S. student loan debt has broken through the $1 trillion mark!
It was time for my fiancé to go to school instead! The challenge though was that due to the in-class schedule, we would be down on some household income. Stevenn and I talked it out and decided to move to a smaller, cheaper apartment, but it was apparent that we would still need some financial assistance. Therefore, we needed another loan.
But this time I went into this contract with more focused curiosity than a kitten seeing her reflection for the first time!
I sat down with my loan contract and a calculator to figure out the estimation for myself! To be honest, I had more headaches in this one mathematical challenge throughout the rest of the year combined!
These mathematical problems center mostly around the amount borrowed, the monthly length of the contract, and the possible interest rate percentages! There is one step that I’ve literally dubbed “mystery step” because of the strange math behind it, but it’s the step that ended up evening everything out! Although I strongly disliked the interest rate to the agreement, I found that this learning opportunity on calculating interest on a loan was invaluable!
Because I know what it’s like to feel trap in a loan, I’ve created this course to break down the math behind calculating interest on a loan into eight simplified steps.
If you’re interested in learning these simple steps on how to calculate interest rates, you can enroll in the course here.
Don’t make the same mistake as I did by going into a loan agreement blindly. Make sure you know exactly what you’re paying for and how your options vary!
Make sure to make financial security a goal in your life, and remember to just live your life one story at a time!
Take care,
Kyndall Bennett from Kyrabe Stories
Click the image to learn more about the course!
Imposter syndrome is a common struggle, especially for women in leadership roles. That nagging voice…
Switching jobs can be stressful, especially when you're not sure where to start. This list…
People naturally trust and follow leaders who know their stuff, so let’s go through six…
Some signs show that you are currently in a toxic work environment, and the purpose…
Could you use the 4 Ps of Marketing to give your career a boost? Of…
Here are some top marketing blogs and websites that are available to help marketers like…
View Comments
I feel like every young adult should learn about lending. It seems so great but there is so much you don't know and it takes forever to pay off any loan.
So freakin' true, Lora! We had to learn the hard way, and it shouldn't be that way with anyone!
I was just thinking today about the fact that personal finances is one area our school system has failed us. I appreciate the hard work you put in to figuring it out and your willingness to share with others!
Thank you, Cynthia! My course might not be enough to eliminate our country's debt, but if it's enough to keep our future generation from making the same mistakes, then I'll be happy.
Great tips...So many people don't think about how much they are going to have to pay back in the end and that is really important!
Thank you, Holly! It's true. Daily interest doesn't seem like much until that first year has passed. ?
Those interest rates will get you! thats why I make a habit of paying things off as quickly as I can. Thank you for this post.
That's a really great habit to have, Brianna! Paying just the minimum due is a quick way to get trapped!
I love being debt free. This is great inspiration for those with the same goal!
Congratulations! Debt-free is definitely a goal that is highly overlooked until the debt is there!
Thanks for sharing. Finances can be stressful so helping people with this topic is great. Good luck with your class!
Thank you for your kind support, Jill! ?
This was so helpful! Loans and interest and all that stuff goes right over my head.
Thank you, Charlene! It did for me too at first! It took some determined math and many searches on Google to FINALLY figure it out! ?
Loans are so frustrating! My student loans from grad school were racking up SO MUCH interest! Thank god we paid them off now.
And I think that's even more cruelty to charge such high interest rates to STUDENTS! Many organizations will just tell the students whatever will convince them to sign the contract without ever going in-depth into the consequences over time! I'm grateful that you were able to pay your student loans off, Christina!
I remember being offered my first credit card in college and feeling like it was free money, ha!
You're not alone in this, Katherine! It's a lesson that is hugely brushed over once it's time to sign up for these things!
I hate interest! Great advice, pay off loans early.
I do too, Lisa! I hate interest with a passion!