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If you clicked on this post about calculating interest on a loan, I’m guessing that you’ve considered the possibility of needing to take out a loan soon for a specific reason. Let me first congratulate you on taking the initiative to learn how to calculate the financial risks beforehand.

Back when I was in college, I got a call about a family emergency. Due to more surprise expenses than expected, I was asked if I could lend the money. It made me nervous to need to take out a $4,000 personal loan, especially since I was still paying off my car loan of about $17,000. It was for family, though. What harm could it do?

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Fast forward a year.

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!

Fast forward a few more years!

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!

But I figured it out! *happy dance*

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!

For you, a loan may need to be taken out for a variety of reasons:

Education expenses

Moving expenses

Automobile expenses (especially those surprise repairs)

Medical expenses

Dental expenses

Travel expenses

Business expenses

Family emergencies

And so on…

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

If you want to read more:

Click the image to learn more about the course!

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