Background on the McCutcheon vs FEC Case
One might think that their basic knowledge for interests associated with their debts and loans are enough, still most people are wailing over with these interest payments.
Many of us were actually guilty of it particularly after seeing the loan billing statement.
Common People’s Questions
These make people to have questions on their mind like:
- How to lower the interest rates on payments?
- Are there other ways of having an edge with regards to interests?
- Can the add-ons be personalized and more flexible?
While it is critical to have basic knowledge of interests about debts and loans, that won’t cut. All it gives is just the surface of a deeper and more serious financial concern. For average consumers, it calls a certain level of dedication and willingness to thoroughly understand their loan and come up with an informed decision.
Transparency and Disclosure
Having full disclosure or transparency on equivalent annual compounded rate of interests on either debts or loans is the standard international practice followed by virtually every financial institution.
For instance, there is this called compound interest payment. Otherwise called as compounded interest, this is a type of interest in which the borrower pays the principal amount of interest. Credit Cards serve as a good example here. Failing to pay dues on time in full, the remaining amount will be carried over to the next month’s due plus interest for the last billing and the new billing period.
These are circumstances in which basic knowledge of the loan would not cut.
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