Whats to stop someone/anyone from taking out a 20k loan, putting all of it on the market, and making it all back and then some then just paying off the loan immediately?
I get weekly mail that is constantly offering me 20k, 50k, sometimes more. I dont need it or want it but it makes me wonder. Like what if I took that 50k loan, put it on some shit coin or stock, get lucky and it rockets up, and in a month make 500k, then take it all out? Is it all just luck? Scared to do it? I guess no one would want to lose 50k of a loan in like one day and have to pay it all back if they cant afford it.
>get weekly mail that is constantly offering me 20k, 50k, sometimes more. Thats a scam.
Dominic Murphy
>Whats to stop someone/anyone from taking out a 20k loan, putting all of it on the market, and making it all back and then some then just paying off the loan immediately? It's almost as if markets go up and down and this could backfire.
Jordan Martinez
>I guess no one would want to lose 50k of a loan in like one day and have to pay it all back if they cant afford it. It's even worse than that. Imagine the kind of interest they'd have you pay back with. Calculate it yourself and see. Or you really don't have to to see that it'd need to be extremely high if they're offering these loans to literally everyone and expecting to profit. Not worth the risk.
Jack Sanchez
That's quite literally what overleveraged retards do and why the market is so volatile.
Henry Smith
congratulations, you invented leveraged positions OP!
Eli Harris
Theyre from banks, even the one I use all the time and have for years. If you want to label them all a scam, yeah sure I get that, but it isnt like a letter from Joey Bonzos Bank Robbery Not a ScamTM loan offices.
Yeah obviously but theres so much shit going on on the markets and apps like Robbinhood or whatever of people making thousands/tens of thousands easily and every day based on shit like pure speculation of precious metals, meme coins, and the like.
Again, is it all just luck?
Brody Price
>what stops you
the market
Camden Price
Personal Loans have an APY so every month you owe a % of what you still owe.
So a loan with an apy of 12% you add 1% of the balance with interest. So the first few months of the loan are the toughest.
So month 1 you get 50000 and need to pay a minimum of 200 but the interest kicks in for 500$
So next month your balance is 50300, you pay the minimum 200 again and next month your balance is 50630.
On the flip side, imagine you make a 20% gain in a month and that 50k is 60k.
Pay off like 20k of the loan on the first payment and you still have 40k to play with. First month payment drops from 50500 to 30500 so next month its only 305 of interest added to the bill, a lot easier to manage……but you owe your government most likely for those gains so when taxes come around that 10k is really 7-8k and you gotta keep that in mind.
Theres just so much risks with loans and quick wins. The best thing to do is deposit money from your steady income and avoid interest.
Second best thing to do is pay for stuff with an interest free credit card maxed out as long as you can and funnel all the debit money into markets.
Eli Edwards
Do it, seek God
Isaac Turner
I did it OP.
20k Loan and bought ICP.
It's now halved.
Luckily I have a well paying job and about 100k in crypto so I borrowed an amount that I could meet the repayments on.
Adam Evans
>reading this thread by OP
Some people truly deserve to just lose it all
Levi Thomas
Great if you can time it right, I put 30k worth of credit cards into the market last September now I'm underwater as fuck but fortunately my wagie job can cover me
James Torres
the balls which you lack
Liam Nguyen
Top kek were literally the same, we gonna make it one day though
OP hope for the best but you better make sure as fuck you can handle the worst case like us now
Liam Hernandez
Better hope it works. Those predatory loans have astronomical interest rates. I don't even read letter like that anymore, I just shred them before I even open them.
Grayson Wilson
> 1. stupid high interest rates 2. they will do everything in their power to prevent you from paying it back all at once so that the interest compounds
Nathaniel Stewart
>Again, is it all just luck? Yes. Its marginally a step above gambling.
Grayson Fisher
Debtslaves will tell you not to buy a used car with cash and to instead get an auto loan and then invest the cash money margin trading to beat your loan interest rate. What could go wrong.
Noah Campbell
Um - being wrong?
Brayden Gutierrez
>What could go wrong. Assuming the cars are the same value and you actually have the income to be buying a car and investing at the same time, nothing.
Alexander Adams
I did a $10k credit card loan and lost it so pay $200/month. its exactly as addictive and hard to win as leverage. dont bother.
Gavin Hall
I did this with Eth in December 2018. Was pretty rough for a couple of years. I'm retired now, in my 30's Worked out okay in the end.
