Observation

Approved for a Loan Doesn’t Mean It’s a Good Deal

Staying on the subject of people talking you into things that are not good for you, because there is a commission or a profit in it for them.

The people who approve loans are not approving you because somebody in that building looked at your situation and thought, let us protect this person. They are approving you because they expect their money back with interest. That is the entire calculation. What happens to you after is not part of it.

So they run their numbers and they call you up and say, good news, we got you approved. You got approved because they raised the rate far enough that somebody with money is willing to gamble on you. Gamble on whether you keep paying, and on whether they can take the asset back, resell it, and still come out ahead while your life comes apart.

You have been approved. You have been approved to wear a yoke and pull their wagon. That is what you were approved for.

Mark HopeLife Coaching