Some loans feel like you’ve been paying them forever without an end in sight. In other cases, you may even be surprised to see your loan balances grow instead of shrink with regular payments. On today’s podcast, Doug Hoyes and Ted Michalos define important terms for understanding how loans work, how to spot an expensive loan, and the risks you face with longer term loans. They also teach you how to avoid borrowing more than you can afford and provide practical advice for what to ask your lender while you’re in the borrowing process.

Helpful resources:

Term vs Amortization Explainer: https://www.youtube.com/watch?v=gaMt1zW7ViA

How Does Compound Interest Work: https://www.youtube.com/watch?v=mO5lhuXhWFk

Debt Servicing Costs: https://www.youtube.com/watch?v=qoV5LD0eMk4

What is a Line of Credit: https://www.youtube.com/watch?v=yFR9Cag40OU

How Car Loans and Loan Rollovers Lead to Insolvency: https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/

Why Payday Loans Won’t Go Away: https://www.hoyes.com/blog/why-payday-loans-wont-go-away/