The vig

The vig, the juice, the interest rate; that’s whats feeding the kids of your local bookie or mortgage broker.  When a degenerate gambler loses his car and house, he still needs to keep up with child support payments.  Unless he decides to sell a kidney to the black market, his only choice is a visit to the loan shark.  When a borrower accepts money from a lender they end up repaying the principal (original amount) along with an additional sum (interest rate).  The vig is usually a percentage of the principal.  So if our gambler gets a good tip on a horse and borrows $10,000 with an interest rate of 10% a month, at the end of the month he owes $11,000 (if the horse loses he owes 2 kneecaps).

The sharks at Mastercard and Visa will spot you some cheddar at an average rate of 17% per year.  If your credit is good (or you show some cleavage) your friendly neighborhood banker can provide you with a Line Of Credit (LOC) at a rate anywhere from 3% to 10%.  If you can qualify for an LOC, it is an ideal tool to minimize the amount of juice that you will pay on your debts.  Strap on those high heels and put on that sexy black dress, go interest rate shopping!

Borrowing more money to pay off debt? Yes! That’s not crazy that just modern economics.  Bring a suitcase to the bank and load it up with cash from your LOC.  Go home and literally swim around in money (make a profile pic while your at it).  After washing the shame off in the shower, put the cash towards paying off your loans.  Start with credit cards that have the highest interest rates and move onto those dreaded student loans.

Learn to use credit cards as a tool to record transactions rather then a gateway to uncontrollable debt.  And if are already in debt, strive to pick the lesser evil with the lowest interest rate.


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