Generation InformationWhat is a Loan?
A loan is a debt provided by an organization or individual to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. Source: Wikipedia
Types of Loans: Conventional Loans, Conforming Loans, Non-Conforming Loans, Secured Loans, Unsecured Loans, Open-ended Loans, Close-ended Loans. Source: Debt
What is a Mortgage?
A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Source: Investopedia.
Who is a job seeker?A person who is searching for job and currently unemployed. I have written a post on Miracle mantra for job seekers to get desired job immediately that describes there is no miracle mantra to get a job but hard work and experience.
How Job Seekers is Trapped in Mortgages and Loans?"When you go for that vital interview at the bank you walk out with a a hundred thousand dollars*. It's a miracle, but something else happens, something they don't tell you about. You leave a testicle behind!
"The bank manager keeps it in a jar in his safe, along with all the others! If ever in your life you get the urge to do something risky, exciting, different or adventurous, chances are you will not because you don't have the balls to do it!"
The system of mortgages and loans are systematically planned to trap the lower income class and middle income class individuals and young people till the end of their lives. I guess everyone remember about the bankruptcy lead to global depression. Bank systems and private parties squeeze the good part of lives of youngsters and keep sending them reminders of loan and mortgage payments.
I know a friend whose father took a home loan in 2003 from a bank for $100000. They have paid EMI 15 yrs and paid a total of $200000 which is twice the initial amount. The left over amount was $75000 They were totally shocked. This was basically because of floating interest rate which they did not knew. The rate of interest was 7% when they took the loan and after 15 years it became 14%.
7 Effective Steps to Get Out of Mortgages and Loans for Job Seekers
1. Knowledge of Loans and Mortgages that you have taken
2. Get Unemployment benefits
3. Talk to a Debt Counselling or Debt management firm
4. Increase EMI amount and Pay the Loan or Mortgage Fast
5. Ask Bank to Reduce Interest Rate
6. Talk to Fee Only Financial Planners or Financially Savvy Friends and Relatives
7. Join FB Groups and Online Forums that Talk about Debt management
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